Junior miner Western Potash (TSE:WPX) Tuesday said an independent prefeasibility study (PFS) confirmed its 100%-owned Milestone potash property in Saskatchewan showed significant positive economics.
The study, carried out by AMEC Americas, showed that the asset was of sufficient size and grade to support mining for more than forty years at a production rate of 2.8 million tonnes per year. The annual production rate can also be expanded through a higher level of capital expenditure, the company said.
Western Potash chief executive and president, Patricio Varas, said: "The PFS confirms the compelling opportunity that the Milestone project represents for the company and the province of Saskatchewan to develop a world class potash mining operation."
"In addition to the 40 year scope of mining contemplated in the PFS, the known resource is sufficient to support ongoing mining for an additional 40 years and beyond."
The company said it will file an updated NI 43-101 report within the next 45 days.
Western Potash said the Milestone project remains economically very strong, with no known limitations that may prevent a successful and profitable project outcome. An assessment of project economics, aassuming a discount rate of 10 percent, showed the resulting project net present value is C$4.14 billion, while the internal rate of return is 22.7 percent.
The initial capital expenditure estimate for the plant is $2.76 billion, including allowances for port infrastructure, a water supply pipeline, and off site railway. . An allowance of $300 million for port infrastructure was excluded from the company’s scoping study completed in 2010. Unit operating costs were estimated to be $62.35 per tonne at full production capacity.
The study gave a time frame of three years for construction, six years to full secondary production and a payback period of five years. AMEC's report also recommended immediate commencement of a feasibility study.
In June, Western Potash defined NI 43-101-compliant resources at Milestone that consisted of a measured potash resource of 64 million tonnes, 180 million tonnes of indicated resource and 701 million tonnes of inferred resource.
Milestone is located approximately 30 kilometres southeast of Regina and 80 kilometres southeast of Mosaic's (NYSE:MOS) Belle Plaine Mining Lease, home to one of the largest producing potash solution mines in the world.
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Tuesday, 1 November 2011
Gowest Gold uncovers potential to increase resources at Frankfield East
Toronto-based Gowest Gold (CVE:GWA)(OTCBB:GWSAF) said Tuesday that diamond drilling beyond the limits of its previously estimated resource at its Frankfield East gold deposit in Ontario has continued to intersect significant gold mineralization, indicating a potential resource boost.
The Frankfield East deposit is part of the company's 60 square kilometre North Timmins gold project.
Gowest said that the latest results from the deposit provide further evidence of the potential to increase the current resource estimate, particularly along strike to the west, as well as at depth. In June, the company defined an NI 43-101 compliant resource, which included 348,000 ounces of gold in the indicated category from 1.62 million tonnes at a grade of 6.68 grams per tonne (g/t) gold, and 838,900 ounces of gold in the inferred category from 4.34 million tonnes at a grade of 6.01 g/t gold.
Four holes were drilled along strike of the Main Zone at Frankfield East, three of which intersected mineralization. These results included 3 metres of 3.6 grams per tonne (g/t) of gold in hole GW11-164; 6.2 metres of 6.3 g/t gold in hole GW11-165; and 10 metres of anomalous mineralization in hole GW11-167 (below cut off gold grade of 3.0 g/t gold).
This drilling brings the total strike at surface to more than 900 metres, compared with approximately 750 metres in the current resource estimate, and still leaves the mineralized zone open to the west, Gowest said.
At the same time, three holes drilled at vertical depths of roughly 1,000 metres showed continuity of the main mineralized zone at depth, tracing the deep extensions along a strike length of at least 600 metres.
Holes GW11-155 and -161 both intersected the deepest significant mineralization found to date, leaving the Main Zone open at depth. GW11-155 intersected multiple zones of mineralization including 2 metres with 22.4 and 9.1 g/t gold as well as 3 metres with 2.4 g/t gold, 2 metres with 5.4 g/t gold and 2 metres with 3.0 g/t gold.
Approximately 200 metres further east, hole GW11-161 intersected 2 metres with 4.9 g/t gold.
In addition, hole GW11-163 was drilled approximately 600 metres east of hole GW11-155 and had a large intersection of 14 metres of anomalous gold, demonstrating that the Main Zone is still open at depth as well as to the east, clearly warranting further follow up, Gowest said.
The company also said a number of other recently completed infill holes confirmed the field location and presence of mineralization near historical holes from the 1970s and 1980s, several of which were not fully assayed.
Moreover, additional drill results were obtained in order to convert the existing inferred gold ounces into the indicated category status, as well as to provide better definition to the upper regions of the deposit. Highlights of these results included 3.5 metres of 5.7 g/t gold in hole GW11-172; 2 metres of 18.5 g/t gold in hole GW11-176; and 3.1 metres of 4.1 g/t gold and 3 metres of 5.2 g/t gold in hole GW11-171.
Recent drilling has continued to intersect multiple zones of mineralization parallel to the Main Zone, which provide potential for adding significantly to the current resource estimate, the company said in a statement. Exploration drilling at Frankfield East are currently focused on both shallower, in-fill drilling and deeper, resource expansion drilling.
President and CEO of Gowest, Greg Romain, commented: "We are extremely pleased by the manner in which our Frankfield East deposit continues to align with and verify our geologic model, indicating that there is far more gold to be found here.
"Of course, this also gives us more confidence that this same geological and geophysical model will be extremely useful in helping us to define additional resources on other parts of our newly expanded, 60-square-kilometre land package surrounding Frankfield East."
Indeed, the company is working on a geophysical and geochemical survey program over its growing land position aimed at identifying additional Frankfield East-style gold targets for exploration in the 2011/12 winter drilling season.
The Frankfield East deposit is part of the company's 60 square kilometre North Timmins gold project.
Gowest said that the latest results from the deposit provide further evidence of the potential to increase the current resource estimate, particularly along strike to the west, as well as at depth. In June, the company defined an NI 43-101 compliant resource, which included 348,000 ounces of gold in the indicated category from 1.62 million tonnes at a grade of 6.68 grams per tonne (g/t) gold, and 838,900 ounces of gold in the inferred category from 4.34 million tonnes at a grade of 6.01 g/t gold.
Four holes were drilled along strike of the Main Zone at Frankfield East, three of which intersected mineralization. These results included 3 metres of 3.6 grams per tonne (g/t) of gold in hole GW11-164; 6.2 metres of 6.3 g/t gold in hole GW11-165; and 10 metres of anomalous mineralization in hole GW11-167 (below cut off gold grade of 3.0 g/t gold).
This drilling brings the total strike at surface to more than 900 metres, compared with approximately 750 metres in the current resource estimate, and still leaves the mineralized zone open to the west, Gowest said.
At the same time, three holes drilled at vertical depths of roughly 1,000 metres showed continuity of the main mineralized zone at depth, tracing the deep extensions along a strike length of at least 600 metres.
Holes GW11-155 and -161 both intersected the deepest significant mineralization found to date, leaving the Main Zone open at depth. GW11-155 intersected multiple zones of mineralization including 2 metres with 22.4 and 9.1 g/t gold as well as 3 metres with 2.4 g/t gold, 2 metres with 5.4 g/t gold and 2 metres with 3.0 g/t gold.
Approximately 200 metres further east, hole GW11-161 intersected 2 metres with 4.9 g/t gold.
In addition, hole GW11-163 was drilled approximately 600 metres east of hole GW11-155 and had a large intersection of 14 metres of anomalous gold, demonstrating that the Main Zone is still open at depth as well as to the east, clearly warranting further follow up, Gowest said.
The company also said a number of other recently completed infill holes confirmed the field location and presence of mineralization near historical holes from the 1970s and 1980s, several of which were not fully assayed.
Moreover, additional drill results were obtained in order to convert the existing inferred gold ounces into the indicated category status, as well as to provide better definition to the upper regions of the deposit. Highlights of these results included 3.5 metres of 5.7 g/t gold in hole GW11-172; 2 metres of 18.5 g/t gold in hole GW11-176; and 3.1 metres of 4.1 g/t gold and 3 metres of 5.2 g/t gold in hole GW11-171.
Recent drilling has continued to intersect multiple zones of mineralization parallel to the Main Zone, which provide potential for adding significantly to the current resource estimate, the company said in a statement. Exploration drilling at Frankfield East are currently focused on both shallower, in-fill drilling and deeper, resource expansion drilling.
President and CEO of Gowest, Greg Romain, commented: "We are extremely pleased by the manner in which our Frankfield East deposit continues to align with and verify our geologic model, indicating that there is far more gold to be found here.
"Of course, this also gives us more confidence that this same geological and geophysical model will be extremely useful in helping us to define additional resources on other parts of our newly expanded, 60-square-kilometre land package surrounding Frankfield East."
Indeed, the company is working on a geophysical and geochemical survey program over its growing land position aimed at identifying additional Frankfield East-style gold targets for exploration in the 2011/12 winter drilling season.
Timmins Gold hits 5.13 g/t gold over 38.1 metres below existing San Francisco pit floor
Timmins Gold Corp. (TSE:TMM) announced Tuesday further significant drill results from its ongoing 2011 drill campaign at the commercially producing San Francisco Mine in Sonora, Mexico, which will be included in an updated NI 43-101 compliant technical report early next year.
The results from the July to December drill program include both exploration and infill drilling in and around the San Francisco and La Chicharra open pits. La Chicharra is located around 1.5 kilometres to the west of the San Francisco pit.
The company said that drilling thus far has confirmed the continuity and extensions of mineralization, both along strike and down dip, and below the existing pit floor at both the San Francisco and La Chicharra open pits.
In addition, Timmins said that assays received from drilling done in August and September returned some of the highest grades intercepted to date from the San Francisco pit.
For example, hole TF-1379, which was drilled from the bottom of the San Francisco pit, intersected 38.1 metres grading 5.13 grams per tonne (g/t) gold, including 1.52 metres of 25.42 g/t gold and 15.24 metres of 8.35 g/t gold and ended in an interval of 1.52 metres of 77.35 g/t gold.
The current pit bottom is 140 metres from surface and this interval was intersected only 30 metres below the current pit bottom, Timmins said.
Meanwhile, hole TF-1377 intercepted 80.77 metres of 0.82 g/t gold including 1.52 metres of 3.55 g/t gold, 9.14 metres of 3.46 g/t gold and 3.05 metres of 2.08 g/t gold. This hole ended in an intercept of 1.52 metres grading 52.66 g/t gold.
Drilling at La Chicharra focused on infill drilling and exploration holes to the northwest of the existing open pit, with the aim of defining structural control of the known mineralization in the pit, Timmins said.
Highlights of these assays include hole TF-1696, which intersected an interval of 100.06 metres grading 1.00 g/t gold, including 10.67 metres of 2.43 g/t gold, 9.18 metres of 1.36 g/t gold, and 7.62 metres of 1.48 g/t gold. This hole ended in 13.73 metres of 2.09 g/t gold.
Also at La Chicharra, drill hole TF-1638 returned 22.90 metres of 0.92 g/t gold including 3.05 metres of 2.36 g/t gold. Hole TF-1645, drilled along the same section but 50 metres to the southwest, intercepted an interval beginning at surface, of 19.6 metres at 0.65 g/t gold, which included 7.62 metres of 1.26 g/t gold, the company said.
In addition, drill hole TF-1640 at La Chicharra returned multiple mineralized zones starting at 9.14 metres depth to the north and west of the pit, including 12.2 metres of 0.95 g/t gold.
In the months of August and September, a total of 52,000 metres of drilling was completed by the company, including reverse circulation and core drilling, distributed between the San Francisco and La Chicharra pits.
Timmins said drilling is ongoing, with the goal to complete more than 120,000 metres of drilling from July to year-end.
Focused solely in Mexico, the company is in commercial gold production at the San Francisco gold mine in Sonora. The mine is a past-producing open pit heap leach operation, and the company has forecast production at a rate in excess of 100,000 ounces of gold per year.
The results from the July to December drill program include both exploration and infill drilling in and around the San Francisco and La Chicharra open pits. La Chicharra is located around 1.5 kilometres to the west of the San Francisco pit.
The company said that drilling thus far has confirmed the continuity and extensions of mineralization, both along strike and down dip, and below the existing pit floor at both the San Francisco and La Chicharra open pits.
In addition, Timmins said that assays received from drilling done in August and September returned some of the highest grades intercepted to date from the San Francisco pit.
For example, hole TF-1379, which was drilled from the bottom of the San Francisco pit, intersected 38.1 metres grading 5.13 grams per tonne (g/t) gold, including 1.52 metres of 25.42 g/t gold and 15.24 metres of 8.35 g/t gold and ended in an interval of 1.52 metres of 77.35 g/t gold.
The current pit bottom is 140 metres from surface and this interval was intersected only 30 metres below the current pit bottom, Timmins said.
Meanwhile, hole TF-1377 intercepted 80.77 metres of 0.82 g/t gold including 1.52 metres of 3.55 g/t gold, 9.14 metres of 3.46 g/t gold and 3.05 metres of 2.08 g/t gold. This hole ended in an intercept of 1.52 metres grading 52.66 g/t gold.
Drilling at La Chicharra focused on infill drilling and exploration holes to the northwest of the existing open pit, with the aim of defining structural control of the known mineralization in the pit, Timmins said.
Highlights of these assays include hole TF-1696, which intersected an interval of 100.06 metres grading 1.00 g/t gold, including 10.67 metres of 2.43 g/t gold, 9.18 metres of 1.36 g/t gold, and 7.62 metres of 1.48 g/t gold. This hole ended in 13.73 metres of 2.09 g/t gold.
Also at La Chicharra, drill hole TF-1638 returned 22.90 metres of 0.92 g/t gold including 3.05 metres of 2.36 g/t gold. Hole TF-1645, drilled along the same section but 50 metres to the southwest, intercepted an interval beginning at surface, of 19.6 metres at 0.65 g/t gold, which included 7.62 metres of 1.26 g/t gold, the company said.
In addition, drill hole TF-1640 at La Chicharra returned multiple mineralized zones starting at 9.14 metres depth to the north and west of the pit, including 12.2 metres of 0.95 g/t gold.
In the months of August and September, a total of 52,000 metres of drilling was completed by the company, including reverse circulation and core drilling, distributed between the San Francisco and La Chicharra pits.
Timmins said drilling is ongoing, with the goal to complete more than 120,000 metres of drilling from July to year-end.
Focused solely in Mexico, the company is in commercial gold production at the San Francisco gold mine in Sonora. The mine is a past-producing open pit heap leach operation, and the company has forecast production at a rate in excess of 100,000 ounces of gold per year.
TrueContext surpasses 10,000 paying subscribers
TrueContext (CVE:TMN) said Monday it has surpassed the 10,000 paying subscriber milestone for its ProntoForms product.
TrueContext CEO Alvaro Pombo commented: "The activation of 10,000 paying subscribers from over 1,200 customers is an important milestone for TrueContext and has mostly been achieved with the momentum gained so far in 2011 with our operator channel partners.
"The customer base acquired to date plus the continuing acquisition rate provides an excellent foundation for us to drive widespread adoption of our product ProntoForms with existing and new customers.
"Our business objectives are clear; we're building a product, reseller partnerships and business process to meet our next target of 100,000 subscribers."
Total revenue for the three months ending June 30 totaled $338,628, compared to $152,446 a year ago, and $288,788 in the first quarter. License revenue came in at $220,720, representing 138% year-over-year growth, driven solely by subscriptions.
Subscription revenue through operator channels, such as through the AT&T partnership, climbed to $108,714 in the second quarter, more than double the figure from the previous quarter. This is an area on which TrueContext plans to focus on in the future, as adding more operators like AT&T is expected to drive growth. Aside from the subscription sales generated through such partnerships, advertising through operating channels also drives higher volumes of traffic through TrueContext's website.
Average subscribers per month for operators rose to 3,620 during the second quarter, compared to 1,646 in the prior three month period.
Shares in the Ottawa, Ontario-based company closed on Friday at 14-cents.
The company, which in early 2010 announced its partnership with AT&T, is responsible for the ProntoForms business application, which does away with paperwork and redundant data entry, allowing field workers in the retail inspection field, for example, to fill business forms from Apple, Blackberry, Android, or Microsoft-powered devices as required.
The mobile app, which is available for purchase directly through AT&T's Small Business Mobile Application Recommender Tool (SMART), allows companies to streamline their out-of-office processes and workflows by turning paper forms into mobile ones. ProntoForms enables users to create forms, generate reports, as well as capture signatures and photos within minutes, all in real-time over the AT&T wireless network.
Data on the mobile form is then maintained securely in a data-center, and can be turned into emails or PDF reports, instantly accessible with an internet connection or connected to back office systems. Form submissions are in real-time, and are especially useful for reporting maintenance issues, materials and supplies order forms, and service and job pricing quotes.TrueContext CEO Alvaro Pombo commented: "The activation of 10,000 paying subscribers from over 1,200 customers is an important milestone for TrueContext and has mostly been achieved with the momentum gained so far in 2011 with our operator channel partners.
"The customer base acquired to date plus the continuing acquisition rate provides an excellent foundation for us to drive widespread adoption of our product ProntoForms with existing and new customers.
"Our business objectives are clear; we're building a product, reseller partnerships and business process to meet our next target of 100,000 subscribers."
Total revenue for the three months ending June 30 totaled $338,628, compared to $152,446 a year ago, and $288,788 in the first quarter. License revenue came in at $220,720, representing 138% year-over-year growth, driven solely by subscriptions.
Subscription revenue through operator channels, such as through the AT&T partnership, climbed to $108,714 in the second quarter, more than double the figure from the previous quarter. This is an area on which TrueContext plans to focus on in the future, as adding more operators like AT&T is expected to drive growth. Aside from the subscription sales generated through such partnerships, advertising through operating channels also drives higher volumes of traffic through TrueContext's website.
Average subscribers per month for operators rose to 3,620 during the second quarter, compared to 1,646 in the prior three month period.
Shares in the Ottawa, Ontario-based company closed on Friday at 14-cents.
Monday, 31 October 2011
Dragon Mining discovers new gold zone east of Svartliden Mine in Sweden
Dragon Mining (ASX: DRA) has unearthed a new zone of gold mineralisation at the Svartliden Mine in northern Sweden after receiving assays from the first three diamond drill holes at the Far East target.
The three holes are from a six hole program designed to follow-up promising geology identified from earlier drilling in the Far East area, which is located about 800 metres east of the open pit.
The best intercept was 6 metres at 6.69 grams per tonne (g/t) gold at a vertical depth of about 350 metres below surface. Each hole intersected material characteristic of the Svartliden host sequence and results for the other holes are pending.
The results provide encouragement for the company as they have been achieved within six months of acquiring full ownership of the mine.
Peter Cordin, executive chairman, said “the discovery of mineralisation and the strong intercept at the Far East target is extremely encouraging for the company.
"The Far East target is just one of a number of near mine areas be evaluated over the coming months, as the company strives to extend the life of the Svartliden mine.”
The Far East target was identified through an ongoing program of geological and geophysical modelling of the near mine area.
The company will commence planning of the next phase of drilling upon completion of the current campaign, with the objective to better define the extent and geometry of the identified mineralisation.
On September 14 Dragon announced a boost to the gold resource at the Svartliden Gold Mine. With the inclusion of stockpiled material, the total resource inventory for the mine is 1,295,100 tonnes at 3.7g/t gold for 157,100 ounces.
Svartliden is an open pit mining operation with ore processed on site through a carbon in leach plant, with first production in March 2005. By 30 September 2011 the operation had processed 2.65 million tonnes at 4.55g/t gold for 273,674 ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21444/dragon-mining-discovers-new-gold-zone-east-of-svartliden-mine-in-sweden-21444.html
The three holes are from a six hole program designed to follow-up promising geology identified from earlier drilling in the Far East area, which is located about 800 metres east of the open pit.
The best intercept was 6 metres at 6.69 grams per tonne (g/t) gold at a vertical depth of about 350 metres below surface. Each hole intersected material characteristic of the Svartliden host sequence and results for the other holes are pending.
The results provide encouragement for the company as they have been achieved within six months of acquiring full ownership of the mine.
Peter Cordin, executive chairman, said “the discovery of mineralisation and the strong intercept at the Far East target is extremely encouraging for the company.
"The Far East target is just one of a number of near mine areas be evaluated over the coming months, as the company strives to extend the life of the Svartliden mine.”
The Far East target was identified through an ongoing program of geological and geophysical modelling of the near mine area.
The company will commence planning of the next phase of drilling upon completion of the current campaign, with the objective to better define the extent and geometry of the identified mineralisation.
On September 14 Dragon announced a boost to the gold resource at the Svartliden Gold Mine. With the inclusion of stockpiled material, the total resource inventory for the mine is 1,295,100 tonnes at 3.7g/t gold for 157,100 ounces.
Svartliden is an open pit mining operation with ore processed on site through a carbon in leach plant, with first production in March 2005. By 30 September 2011 the operation had processed 2.65 million tonnes at 4.55g/t gold for 273,674 ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21444/dragon-mining-discovers-new-gold-zone-east-of-svartliden-mine-in-sweden-21444.html
Montezuma Mining Company raises the stakes at Butcherbird with 47m at 1.81% copper intercept
Montezuma Mining Company (ASX: MZM) continues to build momentum at the Butcherbird Copper Project, with some impressive copper intersections from reverse circulation drilling.
The latest highlight is the broad 47 metres at 1.81% copper from 113 metres, which includes a stunning high grade intercept of 6 metres at 6.08% copper and 631 parts per million cobalt.
What is so significant about the intersection is that it was discovered at the very start of the recent drilling campaign, with assays still pending for 17 of the 19 hole program - which covered around 2700 metres.
Providing a further prospectivity boost to the project, previously completed IP, Aeromagnetic and EM surveys highlight numerous copper/cobalt targets over 6 kilometres of strike - which remains open.
Scoping Study points to robust economics
In another plus for the company, just last week a Scoping Study for the development of the extensive manganese mineralisation at the project.
The study was completed by independent consultancy Engenium Pty Ltd and investigated the development of a mine producing between 0.5 million tonnes and 1 million tonnes per annum of lump and chip ore grading a nominal 36% manganese with a mine life of at least 10 years.
The study has projected an NPV of up to A$376 million with an IRR of up to 59%, based on the Yanneri Ridge JORC Inferred Resource of 64.7 million tonnes at 11.2% manganese (8% manganese cut off).
A yield of 20% of extractable product at 36% manganese was assumed based on the DMS studies, underpinning potential production of over 12 million of lump and chip product with a 1:1 stripping ratio from this deposit alone.
Importantly, Montezuma expects resource upgrades based on further drilling to add to the potential product inventory, and may support a longer mine life and/or increased production rates.
Analysis
Montezuma Mining will now aggressively push towards production with further engineering investigations and a more detailed Feasibility Study as well as actively investigate potential financing avenues to fund the capital requirements of a manganese mine at Butcherbird.
With the Butcherbird project now having a projected net present value of A$376 million against a market cap of just A$20 million, the company's stock price appears to have significant upside.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21433/montezuma-mining-company-raises-the-stakes-at-butcherbird-with-47m-at-181-copper-intercept-21433.html
The latest highlight is the broad 47 metres at 1.81% copper from 113 metres, which includes a stunning high grade intercept of 6 metres at 6.08% copper and 631 parts per million cobalt.
What is so significant about the intersection is that it was discovered at the very start of the recent drilling campaign, with assays still pending for 17 of the 19 hole program - which covered around 2700 metres.
Providing a further prospectivity boost to the project, previously completed IP, Aeromagnetic and EM surveys highlight numerous copper/cobalt targets over 6 kilometres of strike - which remains open.
Scoping Study points to robust economics
In another plus for the company, just last week a Scoping Study for the development of the extensive manganese mineralisation at the project.
The study was completed by independent consultancy Engenium Pty Ltd and investigated the development of a mine producing between 0.5 million tonnes and 1 million tonnes per annum of lump and chip ore grading a nominal 36% manganese with a mine life of at least 10 years.
The study has projected an NPV of up to A$376 million with an IRR of up to 59%, based on the Yanneri Ridge JORC Inferred Resource of 64.7 million tonnes at 11.2% manganese (8% manganese cut off).
A yield of 20% of extractable product at 36% manganese was assumed based on the DMS studies, underpinning potential production of over 12 million of lump and chip product with a 1:1 stripping ratio from this deposit alone.
Importantly, Montezuma expects resource upgrades based on further drilling to add to the potential product inventory, and may support a longer mine life and/or increased production rates.
Analysis
Montezuma Mining will now aggressively push towards production with further engineering investigations and a more detailed Feasibility Study as well as actively investigate potential financing avenues to fund the capital requirements of a manganese mine at Butcherbird.
With the Butcherbird project now having a projected net present value of A$376 million against a market cap of just A$20 million, the company's stock price appears to have significant upside.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21433/montezuma-mining-company-raises-the-stakes-at-butcherbird-with-47m-at-181-copper-intercept-21433.html
Coppermoly in trading halt pending an announcement on a capital raising
Coppermoly (ASX: COY) has been granted a trading halt by the ASX pending an announcement on a material capital raising.
While the company did not reveal any further details of the capital raising, Coppermoly is currently in a very interesting position.
Just last week the company announced it has signed an agreement with ActivEX (ASX: AIV) to farm-in to the Esk Trough Project in South East Queensland, gaining the right to earn a 51% interest with the option to advance its interest to 70%.
The trading halt will be in effect until an announcement is made to the market or no later than the start of trading on Thursday, November 3.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21435/coppermoly-in-trading-halt-pending-an-announcement-on-a-capital-raising-21435.html
While the company did not reveal any further details of the capital raising, Coppermoly is currently in a very interesting position.
Just last week the company announced it has signed an agreement with ActivEX (ASX: AIV) to farm-in to the Esk Trough Project in South East Queensland, gaining the right to earn a 51% interest with the option to advance its interest to 70%.
The trading halt will be in effect until an announcement is made to the market or no later than the start of trading on Thursday, November 3.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21435/coppermoly-in-trading-halt-pending-an-announcement-on-a-capital-raising-21435.html
Navaho Gold drills to follow up on Whitehorse Flats gold hits, Nevada
Navaho Gold (ASX: NVG) has commenced drilling at the Whitehorse Flats Gold Project in Nevada, the fourth project to be drilled before the end of the year.
Newly minted Navaho has two rigs operating in the area, and is aiming to complete drilling on five projects in Nevada before the northern hemisphere winter.
The drill program at Whitehorse Flats will follow up on rock chip samples from outcropping, which returned grades ranging from 0.32 grams per tonne (g/t) gold to 1.82g/t gold.
Navaho plans to test the down-dip extensions of outcropping zones of gold anomalous silicification along with structural targets identified from the interpretation of gravity data.
About 1,500 metres of reverse circulation drilling will be completed in 8‐10 holes, with results expected to be received in December.
Stevens Basin drilling completed
In other company news, Navaho has completed a drill program at the Stevens Basin Gold Project, also in Nevada.
This drilling program was designed to test the anomalous gold mineralisation intersected in one hole drilled in June 2011, which returned 15.2 metres at 0.18g/t gold from 35 metres depth.
It also tested a magnetic target with features similar to the 2.23 million ounce Archimedes/Ruby Hill deposit owned by Barrick Gold.
Samples have been submitted for assay, with results pending.
Navaho hits the exploration trail
Since listing on the ASX in April 2011, Navaho has been working hard to explore the projects it has an interest in.
Both the Whitehorse Flats and Stevens Basin projects are subject to farm-in agreements with Columbus Gold (TSXV: CGT), with Navaho able to earn up to a 70% interest in each project.
Navaho CEO Mark Dugmore said, “it is pleasing to see drilling commence on our fourth project in Nevada since listing in April this year. To date 32 reverse circulation holes have been completed and one core hole commenced totalling over 5000 metres and 600 metres of drilling respectively and it is anticipated that before the end of the year Navaho will have completed approximately 45 holes for nearly 9000 metres of drilling on five projects”.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21432/navaho-gold-drills-to-follow-up-on-whitehorse-flats-gold-hits-nevada-21432.html
Newly minted Navaho has two rigs operating in the area, and is aiming to complete drilling on five projects in Nevada before the northern hemisphere winter.
The drill program at Whitehorse Flats will follow up on rock chip samples from outcropping, which returned grades ranging from 0.32 grams per tonne (g/t) gold to 1.82g/t gold.
Navaho plans to test the down-dip extensions of outcropping zones of gold anomalous silicification along with structural targets identified from the interpretation of gravity data.
About 1,500 metres of reverse circulation drilling will be completed in 8‐10 holes, with results expected to be received in December.
Stevens Basin drilling completed
In other company news, Navaho has completed a drill program at the Stevens Basin Gold Project, also in Nevada.
This drilling program was designed to test the anomalous gold mineralisation intersected in one hole drilled in June 2011, which returned 15.2 metres at 0.18g/t gold from 35 metres depth.
It also tested a magnetic target with features similar to the 2.23 million ounce Archimedes/Ruby Hill deposit owned by Barrick Gold.
Samples have been submitted for assay, with results pending.
Navaho hits the exploration trail
Since listing on the ASX in April 2011, Navaho has been working hard to explore the projects it has an interest in.
Both the Whitehorse Flats and Stevens Basin projects are subject to farm-in agreements with Columbus Gold (TSXV: CGT), with Navaho able to earn up to a 70% interest in each project.
Navaho CEO Mark Dugmore said, “it is pleasing to see drilling commence on our fourth project in Nevada since listing in April this year. To date 32 reverse circulation holes have been completed and one core hole commenced totalling over 5000 metres and 600 metres of drilling respectively and it is anticipated that before the end of the year Navaho will have completed approximately 45 holes for nearly 9000 metres of drilling on five projects”.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21432/navaho-gold-drills-to-follow-up-on-whitehorse-flats-gold-hits-nevada-21432.html
Aurium Resources acquires iron and manganese exploration tenement in WA
Aurium Resources (ASX: AGU) has acquired an iron and manganese exploration application in the Earaheedy Basin in Western Australia for a cash consideration of $15,000.
The tenure is located 14 kilometres southeast of Cazaly Resources' (ASX: CAZ) Cecil Rhodes Project, which is subject to the recent farm-in by Anglo American (LON: AAL).
The exploration tenement (EA69/3025) covers parts of the iron-rich Frere Formation in the Earaheedy Basin, which is highly prospective for large scale iron ore deposits. The new tenure is also prospective for manganese mineralisation.
The Frere Formation is found on the northern margin of the basin, in the Lee Steere Ranges, and will be the primary focus for iron ore exploration upon grant of the tenement.
The iron formations generally increase in thickness and abundance in a north westerly direction within the basin, and recent detailed studies have indicated similarities to the economically important iron formations of the Lake Superior region of North America.
There is also potential for stratiform bedded manganese mineralisation in the Karri Karri Member of the Chiall Formation that overlies the Frere Formation and is believed to share similarities with the giant Kalahari manganese field in South Africa.
Past iron exploration work in the 1970s, principally by Amax Exploration and BHP (ASX: BHP), outlined extensive areas of hematite/goethite enrichment with surface grades of up to 66% Fe along the Frere Formation.
More recently, ground traverses and rock chip sampling of the same Formation by Dragon Energy (ASX: DLE) and Zenith Minerals (ASX: ZNC) have returned values up to 59.6% iron and 64.2% iron, respectively.
Drilling completed by Cazaly at its Cecil Rhodes Prospect, included 34 metres at 54.4% iron (including 22 metres at 58.1% iron), and 22 metres at 57.8% iron and 26 metres at 55.1% iron.
The results support the Frere granular iron formations as being an important iron resource. Fortescue Metals Group (ASX: FMG), Rio Tinto (ASX: RIO), BHP Billiton and Atlas Iron (ASX: AGO) have land-banked substantial parts of the basin, including the Frere Formation.
The manganese potential was recently highlighted with the discovery of high grade manganese (assays to 47.4% Mn) by Zenith Minerals (ASX: ZNC) at their Red Lake Prospect, 57 kilometres southwest of the tenement.
Also, Ausquest’s (ASX:AQD) Manganese Dome project is located 90 kilometres southeast of the application.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21429/aurium-resources-acquires-iron-and-manganese-exploration-tenement-in-wa--21429.html
The tenure is located 14 kilometres southeast of Cazaly Resources' (ASX: CAZ) Cecil Rhodes Project, which is subject to the recent farm-in by Anglo American (LON: AAL).
The exploration tenement (EA69/3025) covers parts of the iron-rich Frere Formation in the Earaheedy Basin, which is highly prospective for large scale iron ore deposits. The new tenure is also prospective for manganese mineralisation.
The Frere Formation is found on the northern margin of the basin, in the Lee Steere Ranges, and will be the primary focus for iron ore exploration upon grant of the tenement.
The iron formations generally increase in thickness and abundance in a north westerly direction within the basin, and recent detailed studies have indicated similarities to the economically important iron formations of the Lake Superior region of North America.
There is also potential for stratiform bedded manganese mineralisation in the Karri Karri Member of the Chiall Formation that overlies the Frere Formation and is believed to share similarities with the giant Kalahari manganese field in South Africa.
Past iron exploration work in the 1970s, principally by Amax Exploration and BHP (ASX: BHP), outlined extensive areas of hematite/goethite enrichment with surface grades of up to 66% Fe along the Frere Formation.
More recently, ground traverses and rock chip sampling of the same Formation by Dragon Energy (ASX: DLE) and Zenith Minerals (ASX: ZNC) have returned values up to 59.6% iron and 64.2% iron, respectively.
Drilling completed by Cazaly at its Cecil Rhodes Prospect, included 34 metres at 54.4% iron (including 22 metres at 58.1% iron), and 22 metres at 57.8% iron and 26 metres at 55.1% iron.
The results support the Frere granular iron formations as being an important iron resource. Fortescue Metals Group (ASX: FMG), Rio Tinto (ASX: RIO), BHP Billiton and Atlas Iron (ASX: AGO) have land-banked substantial parts of the basin, including the Frere Formation.
The manganese potential was recently highlighted with the discovery of high grade manganese (assays to 47.4% Mn) by Zenith Minerals (ASX: ZNC) at their Red Lake Prospect, 57 kilometres southwest of the tenement.
Also, Ausquest’s (ASX:AQD) Manganese Dome project is located 90 kilometres southeast of the application.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21429/aurium-resources-acquires-iron-and-manganese-exploration-tenement-in-wa--21429.html
Gold One International: not bidding for Blyvoor Mine, clarifies newspaper statement
Gold One International (ASX: GDO) has made a statement to the market responding to an article published in a newspaper.
Gold One stated:
'wishes to clarify that it is not bidding for any stake in DRDGold Limited’s Blyvoor Mine, as was incorrectly reported by the South African Sunday Times Business Times weekly newspaper in an article titled “Rand gold price boosts Blyvoor bids”, published in print and online on 29 October, 2011.
'Gold One has not submitted any proposal to acquire any stake in the Blyvoor Mine whatsoever and has no intention of making any such bid in the foreseeable future.'
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21426/gold-one-international-not-bidding-for-blyvoor-mine-clarifies-newspaper-statement-21426.html
Gold One stated:
'wishes to clarify that it is not bidding for any stake in DRDGold Limited’s Blyvoor Mine, as was incorrectly reported by the South African Sunday Times Business Times weekly newspaper in an article titled “Rand gold price boosts Blyvoor bids”, published in print and online on 29 October, 2011.
'Gold One has not submitted any proposal to acquire any stake in the Blyvoor Mine whatsoever and has no intention of making any such bid in the foreseeable future.'
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21426/gold-one-international-not-bidding-for-blyvoor-mine-clarifies-newspaper-statement-21426.html
Gold miner Great Basin names Driscoll as VP of Nevada operations
Mineral explorer Great Basin Gold (TSE:GBG) says that it has bolstered its management team with the appointment of Joseph Driscoll as vice president of the company's Nevada operations, it said Monday.
Driscoll, who is a qualified mining engineer, holds a Bachelor of Science degree from the College of Mineral Science and Technology.
His new duties include: leading a qualified management team focused on operating and developing the company’s Hollister and Esmeralda operations, to enhance partnerships and relations with stakeholders as well as to direct the team’s efforts toward long-term growth.
In 1986, Driscoll started his mining career at Western Energy as a metallurgical technician. He then moved on to work for companies such as Pegasus Gold, New Butte Mining and Independence Mining.
Additionally, he joined Barrick’s Goldstrike Mine as mine operations and maintenance superintendent, in 2006, and re-joined Newmont’s Carlin operation where he has been leeville mine manager until his appointment with Great Basin Gold.
Great Basin’s CEO Ferdi Dippenaar said: "He brings with him a wealth of knowledge and experience which we believe will be instrumental in unlocking the value of our Hollister and Esmeralda projects in Nevada. We are extremely pleased to have Joe join the company and strengthen our operational team in Nevada."
Great Basin Gold develops and explores precious metal deposits. Its properties include the Hollister gold project, which is located on the Carlin Trend goldfield in Nevada, and the Burnstond gold mine that rests in the Witwatersrand Basin goldfields in South Africa.
Driscoll, who is a qualified mining engineer, holds a Bachelor of Science degree from the College of Mineral Science and Technology.
His new duties include: leading a qualified management team focused on operating and developing the company’s Hollister and Esmeralda operations, to enhance partnerships and relations with stakeholders as well as to direct the team’s efforts toward long-term growth.
In 1986, Driscoll started his mining career at Western Energy as a metallurgical technician. He then moved on to work for companies such as Pegasus Gold, New Butte Mining and Independence Mining.
Additionally, he joined Barrick’s Goldstrike Mine as mine operations and maintenance superintendent, in 2006, and re-joined Newmont’s Carlin operation where he has been leeville mine manager until his appointment with Great Basin Gold.
Great Basin’s CEO Ferdi Dippenaar said: "He brings with him a wealth of knowledge and experience which we believe will be instrumental in unlocking the value of our Hollister and Esmeralda projects in Nevada. We are extremely pleased to have Joe join the company and strengthen our operational team in Nevada."
Great Basin Gold develops and explores precious metal deposits. Its properties include the Hollister gold project, which is located on the Carlin Trend goldfield in Nevada, and the Burnstond gold mine that rests in the Witwatersrand Basin goldfields in South Africa.
Great Western prices its $15-mln financing at 63 cents per share
Great Western Minerals (CVE:GWG) says it has priced its previously announced $15 million brokered private financing with the proceeds going towards the development of its South African project, the company said Monday.
The company has hired a syndicate of agents led by privately-held investment dealer Byron Capital Markets to sell 23.8 million shares of Great Western for 63 cents each.
In addition, the rare earths processor has granted the syndicate an option to exercise up to 48 hours prior to the deals closing to place an extra 3.5 million shares for additional gross proceeds of $2.25 million.
Moreover, Great Western said it would pay a 5 percent cash commission of the money raised to the syndicate.
The offering should close on Nov. 10, and the securities issued will be subject to a four month hold period. Also, the financing is subject to regulatory and TSX Venture Exchange approvals.
The Saskatoon-based company plans to use profits from the offering to continue development at its Steenkampskraal project, in South Africa, as well as for general corporate purposes.
Great Western's rare earth specialty alloys are used in the battery, magnet and aerospace industries, and are produced by its two subsidiaries: Less Common Metals in Birkenhead, UK, and Great Western Technologies in Troy, Michigan.
Aside from its Steenkampskraal mine in South Africa, the Saskatoon, Saskatchewan-based company also holds interests in six rare earth exploration properties in North America.
The company has hired a syndicate of agents led by privately-held investment dealer Byron Capital Markets to sell 23.8 million shares of Great Western for 63 cents each.
In addition, the rare earths processor has granted the syndicate an option to exercise up to 48 hours prior to the deals closing to place an extra 3.5 million shares for additional gross proceeds of $2.25 million.
Moreover, Great Western said it would pay a 5 percent cash commission of the money raised to the syndicate.
The offering should close on Nov. 10, and the securities issued will be subject to a four month hold period. Also, the financing is subject to regulatory and TSX Venture Exchange approvals.
The Saskatoon-based company plans to use profits from the offering to continue development at its Steenkampskraal project, in South Africa, as well as for general corporate purposes.
Great Western's rare earth specialty alloys are used in the battery, magnet and aerospace industries, and are produced by its two subsidiaries: Less Common Metals in Birkenhead, UK, and Great Western Technologies in Troy, Michigan.
Aside from its Steenkampskraal mine in South Africa, the Saskatoon, Saskatchewan-based company also holds interests in six rare earth exploration properties in North America.
Nextraction Energy and Magnum amend joint venture deal for Viking oil property
Nextraction Energy Corp. (CVE:NE) said Monday that it has amended its joint venture agreement with oil and gas company Magnum Energy (CVE:MEN) relating to their Viking oil property, in eastern Alberta.
The property, situated in the Provost Field, is known for its prolific Viking A formation whereby vertical wells have produced up to 300,000 barrels of oil each.
According to the initial joint venture deal, Nextraction was supposed to cover the costs to drill, complete and tie in two horizontal wells to earn a 50 percent working interest in each well and future development.
Under the amended deal, Nextraction immediately becomes vested in the property, decreasing the earn-in provision of the agreement from two horizontal wells to one well.
In exchange for the reduction in the required number of drilled wells under the joint venture deal, Nextraction has agreed that the $1.19 million remaining loan Magnum owed the company has now been repaid in full as of October 1.
Nextraction said that reducing the earn-in commitment allows the company to drill two wells – at 50 percent working interest – rather than one well for the same capital outlay, thereby increasing the production, reserves and value of the expenditure for Nextraction’s shareholders.
On October 6, Nextraction finished its first horizontal Provost Viking well. For the first five days of testing, the 1,200 metre horizontal leg, which had been fractured in 13-stages, flowed at 177 barrels of oil equivalent per day. Average flow rates were comprised of 109 barrels of oil and 410 million cubic feet per day of natural gas, with a 75 percent watercut, the Canadian junior oil and gas company said.
Under the terms of the new deal, Nextraction will complete and solely pick up the cost for the construction of a pipeline to tie-in this first horizontal well that has been completed.
The permitting of the pipeline is underway, and Nextraction expects construction to be completed late in the fourth quarter. Once the pipeline has been constructed, Nextraction and Magnum will continue to advance the development of the Provost property.
In addition to developing the Provost light oil pool, Nextraction is producing light oil and liquids rich gas at its Pinedale Anticline resource play in Wyoming, and is testing for horizontal shale gas development on its lands in the southern Appalachian Basin of the eastern United States.
The Calgary-based company’s stock traded flat at 31 cents a share, while Magnum Energy’s shares rose 5.88 percent to 18 cents on Monday early afternoon.
The property, situated in the Provost Field, is known for its prolific Viking A formation whereby vertical wells have produced up to 300,000 barrels of oil each.
According to the initial joint venture deal, Nextraction was supposed to cover the costs to drill, complete and tie in two horizontal wells to earn a 50 percent working interest in each well and future development.
Under the amended deal, Nextraction immediately becomes vested in the property, decreasing the earn-in provision of the agreement from two horizontal wells to one well.
In exchange for the reduction in the required number of drilled wells under the joint venture deal, Nextraction has agreed that the $1.19 million remaining loan Magnum owed the company has now been repaid in full as of October 1.
Nextraction said that reducing the earn-in commitment allows the company to drill two wells – at 50 percent working interest – rather than one well for the same capital outlay, thereby increasing the production, reserves and value of the expenditure for Nextraction’s shareholders.
On October 6, Nextraction finished its first horizontal Provost Viking well. For the first five days of testing, the 1,200 metre horizontal leg, which had been fractured in 13-stages, flowed at 177 barrels of oil equivalent per day. Average flow rates were comprised of 109 barrels of oil and 410 million cubic feet per day of natural gas, with a 75 percent watercut, the Canadian junior oil and gas company said.
Under the terms of the new deal, Nextraction will complete and solely pick up the cost for the construction of a pipeline to tie-in this first horizontal well that has been completed.
The permitting of the pipeline is underway, and Nextraction expects construction to be completed late in the fourth quarter. Once the pipeline has been constructed, Nextraction and Magnum will continue to advance the development of the Provost property.
In addition to developing the Provost light oil pool, Nextraction is producing light oil and liquids rich gas at its Pinedale Anticline resource play in Wyoming, and is testing for horizontal shale gas development on its lands in the southern Appalachian Basin of the eastern United States.
The Calgary-based company’s stock traded flat at 31 cents a share, while Magnum Energy’s shares rose 5.88 percent to 18 cents on Monday early afternoon.
IBC Advanced Alloys posts 37% higher 2011 sales, increased gross profit
IBC Advanced Alloys Corp. (CVE:IB) released Monday results from its fiscal 2011 fiscal year ending June 30, announcing an 87 percent increase in gross profit and a 37 percent boost in sales from the prior year.
The vertically integrated rare metals-based alloys and advanced cast product maker said that sales for the year came in at $20.46 million, versus $14.93 million a year earlier.
IBC makes and distributes rare metal alloys that are used in a variety of industries, including nuclear energy, automotive, telecommunications, and a range of industrial application. It has 80 employees, with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
"Over the last four years, IBC has developed and implemented an advanced alloys business to support its mine-to-market business strategy," said CFO, Simon Anderson.
"Our fiscal 2011 revenue growth is clear proof that IBC's vertically integrated model is sound and that the business has a strong foundation. We have successfully integrated our operating facilities, introduced a range of new high performance alloys and begun business development efforts into several new markets."
Indeed, gross profit for the year jumped a whopping 87 percent to $3.93 million, from $2.10 million, in fiscal 2010, on increased sales and improved operating practices, the company said.
Losses for 2011 were wider, however, at $4.66 million, or $0.02 per share, up 13 percent from the previous year, reflecting both business expansion and one-time expenses related to plant re-location.
"While the company as a whole is not yet profitable, we were very encouraged by our 2011 financial performance and expected the increased costs in fiscal 2011, which relate to the expansion and upgrading of our manufacturing base to support future revenue growth," added Anderson.
Operationally, IBC made significant progress during the year, including the construction of a new factory in Massachusetts, and the closing of an $8.2 million financing to fund a mineral exploration program at its beryllium properties in Utah, as well as other new business development initiatives.
In May, IBC opened a new 63,000 square foot manufacturing facility in Wilmington, MA to support the growth of the company's Engineered Materials division and its ultra-lightweight cast alloys.
A month later, the company also inked a memorandum of understanding with its Kazakh suppliers, Ulba Metallurgical Plant, to further advance the company's relationship and to continue to target emerging opportunities in the global beryllium and rare metals market.
Earlier in the year, the alloys manufacturer also renewed its collaborative research agreement with Purdue and Texas Engineering Experiment Station, a member institution of the Texas A&M University, with regards to their commitment to develop a beryllium-enhanced nucleur fuel.
Moreover, IBC said last Thursday that it signed a preliminary agreement with Ceramic Tubular Products to jointly develop their respective nuclear fuel technologies. The two technologies, which will be advanced to address operational and performance issues with light water reactor fuel systems, are complementary, the companies said, and have the ability to deliver "significant" fuel performance improvements and safety benefits.
Aside from its alloys manufacturing facilities, and nuclear fuels initiative, Vancouver-based IBC owns prospective beryllium properties that consist of 371 claims, totalling about 7,630 acres, and are adjacent to the large Spor Mountain beryllium mine.
The first phase drill campaign at its Juab County project in western Utah will consist of up to 35 holes, totalling 5,250 metres of reverse circulation drilling to test target zones in the volcanic tuff and in the underlying Bell Hill Dolomite unit, in the claim area south of the Starvation Canyon Wash.
The company ended the year with cash and equivalents of $7.51 million.
The vertically integrated rare metals-based alloys and advanced cast product maker said that sales for the year came in at $20.46 million, versus $14.93 million a year earlier.
IBC makes and distributes rare metal alloys that are used in a variety of industries, including nuclear energy, automotive, telecommunications, and a range of industrial application. It has 80 employees, with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
"Over the last four years, IBC has developed and implemented an advanced alloys business to support its mine-to-market business strategy," said CFO, Simon Anderson.
"Our fiscal 2011 revenue growth is clear proof that IBC's vertically integrated model is sound and that the business has a strong foundation. We have successfully integrated our operating facilities, introduced a range of new high performance alloys and begun business development efforts into several new markets."
Indeed, gross profit for the year jumped a whopping 87 percent to $3.93 million, from $2.10 million, in fiscal 2010, on increased sales and improved operating practices, the company said.
Losses for 2011 were wider, however, at $4.66 million, or $0.02 per share, up 13 percent from the previous year, reflecting both business expansion and one-time expenses related to plant re-location.
"While the company as a whole is not yet profitable, we were very encouraged by our 2011 financial performance and expected the increased costs in fiscal 2011, which relate to the expansion and upgrading of our manufacturing base to support future revenue growth," added Anderson.
Operationally, IBC made significant progress during the year, including the construction of a new factory in Massachusetts, and the closing of an $8.2 million financing to fund a mineral exploration program at its beryllium properties in Utah, as well as other new business development initiatives.
In May, IBC opened a new 63,000 square foot manufacturing facility in Wilmington, MA to support the growth of the company's Engineered Materials division and its ultra-lightweight cast alloys.
A month later, the company also inked a memorandum of understanding with its Kazakh suppliers, Ulba Metallurgical Plant, to further advance the company's relationship and to continue to target emerging opportunities in the global beryllium and rare metals market.
Earlier in the year, the alloys manufacturer also renewed its collaborative research agreement with Purdue and Texas Engineering Experiment Station, a member institution of the Texas A&M University, with regards to their commitment to develop a beryllium-enhanced nucleur fuel.
Moreover, IBC said last Thursday that it signed a preliminary agreement with Ceramic Tubular Products to jointly develop their respective nuclear fuel technologies. The two technologies, which will be advanced to address operational and performance issues with light water reactor fuel systems, are complementary, the companies said, and have the ability to deliver "significant" fuel performance improvements and safety benefits.
Aside from its alloys manufacturing facilities, and nuclear fuels initiative, Vancouver-based IBC owns prospective beryllium properties that consist of 371 claims, totalling about 7,630 acres, and are adjacent to the large Spor Mountain beryllium mine.
The first phase drill campaign at its Juab County project in western Utah will consist of up to 35 holes, totalling 5,250 metres of reverse circulation drilling to test target zones in the volcanic tuff and in the underlying Bell Hill Dolomite unit, in the claim area south of the Starvation Canyon Wash.
The company ended the year with cash and equivalents of $7.51 million.
Black Iron posts "impressive" PEA for Shymanivske, showing 42.1% IRR, and $3.0bln net present value
Black Iron (TSE:BKI) announced early Monday the results of its preliminary economic assessment (PEA) for its Shymanivske iron ore project in Kryviy Rih, Ukraine, indicating a low cost pellet plant feed operation with a projected high value and net cash flows.
The preliminary report, completed by BBA of Montreal, Quebec, considered two production scenarios over a 28 year mine life, the first being a 7.3 million tonne per year iron ore pellet plant feed, and the second being a production alternative for producing 7.6 million tonnes per year of iron ore pellets.
The first option dictates a projected 42.1 percent internal rate of return (IRR), with a whopping US$3 billion net present value, at an 8 percent discount rate. Total capital costs came in just shy of $900 million, with a payback period of 2.2 years, and an estimated operating cost for the average initial 20 years of $52.40 per tonne.
The iron grade of the final product from the pellet plant feed is to be 67 percent iron, the report said, compared to the benchmark grade of typically 62 percent, said the company on a conference call Monday, with every one percent of grade adding $5 per tonne to the product. Iron ore is the raw material used to make pig iron, which is one of the main raw materials used to make steel, and is therefore one of the most integral commodities to the global economy.
The second scenario for Shymanivske outlines the option to produce a higher margin pellet product of 65 percent iron grade, generating a much higher net present value of US$4.1 billion at the same discounted rate, but with a reduced 35.2 percent internal rate of return, due to raised construction costs, Black Iron said.
This alternative option sees a slightly higher output rate of 7.6 million tonnes per year, and a pellet sales price premium of $35 per tonne, but operating costs over the initial 20 years are projected at $64.15 per tonne, with estimated total capital costs of $1.57 billion and a payback period just under three years.
The company said that it plans to construct the mine and concentrator to produce pellet feed for start-up in late 2015, and use cash generated from operations to potentially construct a separate pellet plant, or rather increase pellet feed production and double existing capacity three to five years after start of initial output.
The final product, Black Iron said, will be dependant on the needs of its future offtake partner, and will therefore be decided once an agreement is signed.
Average annual cash flows for the first 20 years are pegged at $382.8 million for the pellet feed operation, versus $540.7 million for the pellet production case.
"The operation outlined by this PEA for the Shymanivske Project indicates the potential for a high value, low net cost iron ore development project," said president and CEO, Matt Simpson.
"The projected high NPV, net cash flows, and relatively low unit cost for pellet plant feed arise from Black Iron's advantages, including an iron ore deposit with significant infrastructure (existing railway, power lines and port) and access to skilled labour.
"Our results to date, coupled with this engineering study, make a compelling case for expediting the development of the Shymanivske Project."
Indeed, the company said that the operations outlined in this PEA are projected to generate over US$856 million in average annual revenue over the first 20 years of mine life for the pellet feed scenario, and over US$1.15 billion in the alternative option.
The location of the Shymanivske project is ideal, as it is surrounded by seven other iron ore mines, including ArcelorMittal's iron ore complex, and it is nearby key European and Turkish customers.
Based on metallurgical work completed for the report, the process weight recovery of 29.6 percent would yield a project life of about 28 years with the current estimated NI 43-101 compliant resources, which stand at 345 million measured and indicated tonnes grading 32% iron, and an additional 469 million inferred tonnes grading 31% iron.
Black Iron said it is working to improve both technical and metallurgical aspects of the project, as part of a feasibility study that will begin once the PEA report is finalized. Work to further streamline and simplify operations, as well as reduce mining and concentrator costs for the pellet producing option, is expected to lower capital costs.
The company's COO, George Mover, added: "Through the process we gained considerable insight into potential opportunities for further improvement in the already attractive overall potential economics, including an increase in weight recovery and the simplification of the process flow sheet.
"These opportunities...should further reduce the capital and operating costs. The relatively low unit operating cost of production coupled with close proximity to Turkish and European customers, means this operation has the potential to remain profitable despite any fluctuations in the iron ore price as both demand and supply increase in the future."
Last week, the company received a favourable court ruling allowing it to resume drilling activities at the project. The Dnepropetrovsk District Administrative Court ruled in favour of the company with respect to a temporary suspension of activity at the site, imposed by the Dnepropetrovsk Region Ecological Inspectorate.
Following the decision, the company has already started its first definition and exploration program, which is aiming to upgrade and increase the size of the resource at the property to 1.0 to 1.8 billion tonnes at a grade of 28% to 32% iron, including the nearby exploration permit located adjacent to Shymanivske, known as the Zelenivske project.
With a successful exploration and definition drill program the company expects to be able to support increased production scenarios, which would further increase the already strong project net present values, Black Iron said.
The iron ore explorer will be drilling at the northern end of Shymanivske, with 20,000 metres expected in the next year. However, Black iron cautioned that further drilling is not necessary for its mid to late 2015 production target, and if markets continue to falter, drilling could be scaled back to conserve cash. Assay results are anticipated to flow out in the next four to six weeks.
CEO Simpson concluded that with an "impressive" 42.1 percent IRR for the pellet plant feed scenario, there are "substantial opportunities" for share price appreciation, given Black Iron's current market cap of over $115 million.
Shares of the iron ore company were up 1.22 percent in early morning trading Monday, to $0.83 as of 9:33am ET.
The preliminary report, completed by BBA of Montreal, Quebec, considered two production scenarios over a 28 year mine life, the first being a 7.3 million tonne per year iron ore pellet plant feed, and the second being a production alternative for producing 7.6 million tonnes per year of iron ore pellets.
The first option dictates a projected 42.1 percent internal rate of return (IRR), with a whopping US$3 billion net present value, at an 8 percent discount rate. Total capital costs came in just shy of $900 million, with a payback period of 2.2 years, and an estimated operating cost for the average initial 20 years of $52.40 per tonne.
The iron grade of the final product from the pellet plant feed is to be 67 percent iron, the report said, compared to the benchmark grade of typically 62 percent, said the company on a conference call Monday, with every one percent of grade adding $5 per tonne to the product. Iron ore is the raw material used to make pig iron, which is one of the main raw materials used to make steel, and is therefore one of the most integral commodities to the global economy.
The second scenario for Shymanivske outlines the option to produce a higher margin pellet product of 65 percent iron grade, generating a much higher net present value of US$4.1 billion at the same discounted rate, but with a reduced 35.2 percent internal rate of return, due to raised construction costs, Black Iron said.
This alternative option sees a slightly higher output rate of 7.6 million tonnes per year, and a pellet sales price premium of $35 per tonne, but operating costs over the initial 20 years are projected at $64.15 per tonne, with estimated total capital costs of $1.57 billion and a payback period just under three years.
The company said that it plans to construct the mine and concentrator to produce pellet feed for start-up in late 2015, and use cash generated from operations to potentially construct a separate pellet plant, or rather increase pellet feed production and double existing capacity three to five years after start of initial output.
The final product, Black Iron said, will be dependant on the needs of its future offtake partner, and will therefore be decided once an agreement is signed.
Average annual cash flows for the first 20 years are pegged at $382.8 million for the pellet feed operation, versus $540.7 million for the pellet production case.
"The operation outlined by this PEA for the Shymanivske Project indicates the potential for a high value, low net cost iron ore development project," said president and CEO, Matt Simpson.
"The projected high NPV, net cash flows, and relatively low unit cost for pellet plant feed arise from Black Iron's advantages, including an iron ore deposit with significant infrastructure (existing railway, power lines and port) and access to skilled labour.
"Our results to date, coupled with this engineering study, make a compelling case for expediting the development of the Shymanivske Project."
Indeed, the company said that the operations outlined in this PEA are projected to generate over US$856 million in average annual revenue over the first 20 years of mine life for the pellet feed scenario, and over US$1.15 billion in the alternative option.
The location of the Shymanivske project is ideal, as it is surrounded by seven other iron ore mines, including ArcelorMittal's iron ore complex, and it is nearby key European and Turkish customers.
Based on metallurgical work completed for the report, the process weight recovery of 29.6 percent would yield a project life of about 28 years with the current estimated NI 43-101 compliant resources, which stand at 345 million measured and indicated tonnes grading 32% iron, and an additional 469 million inferred tonnes grading 31% iron.
Black Iron said it is working to improve both technical and metallurgical aspects of the project, as part of a feasibility study that will begin once the PEA report is finalized. Work to further streamline and simplify operations, as well as reduce mining and concentrator costs for the pellet producing option, is expected to lower capital costs.
The company's COO, George Mover, added: "Through the process we gained considerable insight into potential opportunities for further improvement in the already attractive overall potential economics, including an increase in weight recovery and the simplification of the process flow sheet.
"These opportunities...should further reduce the capital and operating costs. The relatively low unit operating cost of production coupled with close proximity to Turkish and European customers, means this operation has the potential to remain profitable despite any fluctuations in the iron ore price as both demand and supply increase in the future."
Last week, the company received a favourable court ruling allowing it to resume drilling activities at the project. The Dnepropetrovsk District Administrative Court ruled in favour of the company with respect to a temporary suspension of activity at the site, imposed by the Dnepropetrovsk Region Ecological Inspectorate.
Following the decision, the company has already started its first definition and exploration program, which is aiming to upgrade and increase the size of the resource at the property to 1.0 to 1.8 billion tonnes at a grade of 28% to 32% iron, including the nearby exploration permit located adjacent to Shymanivske, known as the Zelenivske project.
With a successful exploration and definition drill program the company expects to be able to support increased production scenarios, which would further increase the already strong project net present values, Black Iron said.
The iron ore explorer will be drilling at the northern end of Shymanivske, with 20,000 metres expected in the next year. However, Black iron cautioned that further drilling is not necessary for its mid to late 2015 production target, and if markets continue to falter, drilling could be scaled back to conserve cash. Assay results are anticipated to flow out in the next four to six weeks.
CEO Simpson concluded that with an "impressive" 42.1 percent IRR for the pellet plant feed scenario, there are "substantial opportunities" for share price appreciation, given Black Iron's current market cap of over $115 million.
Shares of the iron ore company were up 1.22 percent in early morning trading Monday, to $0.83 as of 9:33am ET.
Tirex Resources appoints president
Tirex Resources (CVE:TXX) said Friday it has appointed Fred Tejada as president of the company.
Tejada has 30 years of international mineral industry experience, working with both major international mining companies and exploration focused organizations.
Prior to joining Tirex, where he was VP of operations and exploration until recently, he was VP of exploration for Panoro Minerals, where he directed the resource definition drilling of its two major copper projects in Peru.
For seven years, Tejada was country manager and president of Philippine subsidiary companies of Phelps Dodge Exploration Corporation.
While with Phelps Dodge, he was responsible for corporate matters and exploration activities from project generation, property acquisitions and permitting. In this role, he led the acquisition of Mountain Mines in Batong Buhay and Taysan copper deposits.
"Tirex recently announced and described an arrangement through which the company intends to target a fast track into copper and gold production via a mining partnership in Albania," said CEO, Bryan Slusarchuk.
"This comes after the company has spent more than four years and more than $25 million on the Mirdita VMS Project. On October 18th, we announced that our mining plans have received official community support from all of the host communities where the mining permit applications are located.
"Mr. Tejada's leadership in Albania and corporately in Canada, based on his 30 years of international mineral industry experience, will serve the company well during this process. His operational leadership in Albania will allow me to remain devoted to raising the profile of the company through my role as CEO, internationally as we advance corporately."
Tirex is an exploration-stage company exploring and developing natural resource properties in Albania. It is explores for various metals like copper, zinc, gold and silver.
Tejada has 30 years of international mineral industry experience, working with both major international mining companies and exploration focused organizations.
Prior to joining Tirex, where he was VP of operations and exploration until recently, he was VP of exploration for Panoro Minerals, where he directed the resource definition drilling of its two major copper projects in Peru.
For seven years, Tejada was country manager and president of Philippine subsidiary companies of Phelps Dodge Exploration Corporation.
While with Phelps Dodge, he was responsible for corporate matters and exploration activities from project generation, property acquisitions and permitting. In this role, he led the acquisition of Mountain Mines in Batong Buhay and Taysan copper deposits.
"Tirex recently announced and described an arrangement through which the company intends to target a fast track into copper and gold production via a mining partnership in Albania," said CEO, Bryan Slusarchuk.
"This comes after the company has spent more than four years and more than $25 million on the Mirdita VMS Project. On October 18th, we announced that our mining plans have received official community support from all of the host communities where the mining permit applications are located.
"Mr. Tejada's leadership in Albania and corporately in Canada, based on his 30 years of international mineral industry experience, will serve the company well during this process. His operational leadership in Albania will allow me to remain devoted to raising the profile of the company through my role as CEO, internationally as we advance corporately."
Tirex is an exploration-stage company exploring and developing natural resource properties in Albania. It is explores for various metals like copper, zinc, gold and silver.
Rare Element Resources reports encouraging 2011 drill results from Bear Lodge
Rare Element Resources (TSE:RES) (AMEX: REE) announced late Thursday rare earth element (REE) assay results from 21 drill holes completed during its ongoing 2011 core drilling program at the company's Bear Lodge property, located in northeastern Wyoming, intersecting many high grade REE zones.
Holes from the Whitetail Ridge target were all step-offs from the resource, and the holes at East Taylor confirmed and expanded the encouraging initial reverse circulation drill results reported in August, the company said.
Highlights from the Whitetail Ridge area included 31.8 feet at 3.94% total rare earth oxide (TREO), including 27 feet at 4.68% TREO in hole RES11-10; 113 feet at 2.52% TREO in hole RES-11-12; 48.25 feet at 2.9% TREO in hole RES11-14; and 108 feet at 3.81% TREO in hole RES11-25.
At East Taylor, hole RES11-26 returned 41.5 feet at 4.15% TREO.
Meanwhile, the company also drilled at the Bull Hill resource area, where notable intersections returned 58 feet at 4.88% TREO in hole RES11-27; 40 feet at 3.21% TREO in hole RES11-21 and 115 feet at 3.38% TREO; and 64 feet at 5.48% TREO in hole RES11-22.
"We continue to receive encouraging results from the Bull Hill resource area, and we are extending that mineralization west of the Bull Hill drainage," said VP of exploration, Dr. Jim Clark.
"Our results at the Whitetail Ridge Resource Area confirm the company's initial impression regarding the potential size and tenor of the REE mineralization there, and the East Taylor target is an exciting find, with the original RC drill assay values now confirmed with core drilling,"
"We are investigating the significance of the overlapping REE and gold mineralization at both East Taylor and Whitetail Ridge."
In June, the company published an updated NI 43-101 compliant resource report for the Bull Hill and Whitetail Ridge areas. According to the updated report, a total of 4.9 million tons were estimated in the indicated category at a grade of 3.77% rare earth oxides (REO), increasing the total pounds of REO contained in the Bull Hill high grade deposits by 20%, from 1,210 pounds to 1,450 pounds, at a 1.5% REO cut-off grade.
In addition, 17.8 million tons of inferred resources were established, at a grade of 3.03% REO.
The rare earth explorer's latest estimate, conducted by Ore Reserves Engineering, was based on data from 86 core drill holes completed by the company between 2008 and 2010, for a total of 19,093 metres. These new holes were substituted for those drilled before 2008, as well as for those completed prior to 2004 by other companies, Rare Element said.
The aim of the current drilling program is to continue to expand and upgrade the Bull Hill and Whitetail oxide resources, and to explore for additional REE resources at the East Taylor target, which is located approximately 760 metres west of the main Bull Hill rare-earth deposit.
Rare-earth elements are key components of green energy technologies, used in everything from hybrid automobiles, to advanced wind turbines and computer hard drives. China currently produces more than 96 percent of the 130,000 tonnes of rare-earths consumed worldwide each year, but has recently begun reducing its export quotas, making the metals more and more critical.
Holes from the Whitetail Ridge target were all step-offs from the resource, and the holes at East Taylor confirmed and expanded the encouraging initial reverse circulation drill results reported in August, the company said.
Highlights from the Whitetail Ridge area included 31.8 feet at 3.94% total rare earth oxide (TREO), including 27 feet at 4.68% TREO in hole RES11-10; 113 feet at 2.52% TREO in hole RES-11-12; 48.25 feet at 2.9% TREO in hole RES11-14; and 108 feet at 3.81% TREO in hole RES11-25.
At East Taylor, hole RES11-26 returned 41.5 feet at 4.15% TREO.
Meanwhile, the company also drilled at the Bull Hill resource area, where notable intersections returned 58 feet at 4.88% TREO in hole RES11-27; 40 feet at 3.21% TREO in hole RES11-21 and 115 feet at 3.38% TREO; and 64 feet at 5.48% TREO in hole RES11-22.
"We continue to receive encouraging results from the Bull Hill resource area, and we are extending that mineralization west of the Bull Hill drainage," said VP of exploration, Dr. Jim Clark.
"Our results at the Whitetail Ridge Resource Area confirm the company's initial impression regarding the potential size and tenor of the REE mineralization there, and the East Taylor target is an exciting find, with the original RC drill assay values now confirmed with core drilling,"
"We are investigating the significance of the overlapping REE and gold mineralization at both East Taylor and Whitetail Ridge."
In June, the company published an updated NI 43-101 compliant resource report for the Bull Hill and Whitetail Ridge areas. According to the updated report, a total of 4.9 million tons were estimated in the indicated category at a grade of 3.77% rare earth oxides (REO), increasing the total pounds of REO contained in the Bull Hill high grade deposits by 20%, from 1,210 pounds to 1,450 pounds, at a 1.5% REO cut-off grade.
In addition, 17.8 million tons of inferred resources were established, at a grade of 3.03% REO.
The rare earth explorer's latest estimate, conducted by Ore Reserves Engineering, was based on data from 86 core drill holes completed by the company between 2008 and 2010, for a total of 19,093 metres. These new holes were substituted for those drilled before 2008, as well as for those completed prior to 2004 by other companies, Rare Element said.
The aim of the current drilling program is to continue to expand and upgrade the Bull Hill and Whitetail oxide resources, and to explore for additional REE resources at the East Taylor target, which is located approximately 760 metres west of the main Bull Hill rare-earth deposit.
Rare-earth elements are key components of green energy technologies, used in everything from hybrid automobiles, to advanced wind turbines and computer hard drives. China currently produces more than 96 percent of the 130,000 tonnes of rare-earths consumed worldwide each year, but has recently begun reducing its export quotas, making the metals more and more critical.
Sunday, 30 October 2011
African Energy Resources extends potential investor reach to Botswana with BSE listing
African Energy Resources (ASX: AFR) joins a growing list of international resource companies as it prepares to list on the Botswana Stock Exchange (BSE) following approval for the dual-listing.
The company will join the likes of Discovery Metals (ASX: DML), A‐Cap Resources (ASX: ACB) and CIC Energy (TSX: ELC) when it begins trading on the BSE later today.
The move will place increased investor focus on its wholly owned Sese Coal Project, where the company continues to make rapid progress towards developing the 2.7 billion tonne project.
Importantly, Botswana is an emerging global coal province widely perceived as an excellent investment destination by mining companies.
The dual-listing provides African Energy with access to an additional shareholder base within Botswana that includes a number of significant institutional investors and pension funds.
A formal ceremony will be held in Gaborone today to mark the admission of the company to the BSE.
The Sese Coal Project
The Sese Coal Project is supported by good infrastructure 25 kilometres to the east, including road, rail and a 220 kilovolt power line.
India is considered the likely market for Sese thermal coal, with demand set to increase from 50 million tonnes per annum in 2010 to 210 million tonnes per annum by 2025.
China is also experiencing a surge in demand for the resource with thermal coal imports expected to double to 213 million tonnes by 2025.
In September, African Energy Resources received results from a Concept Study that confirm the technical and commercial viability of the project.
Robust cash flows and strong operating margins are possible under a variety of scenarios that do not require new rail and port infrastructure.
The study concluded that the project could be developed through a staged approach. An initial, up to 1 million tonnes per annum operation (Stage 1) can generate cash flows from 2013 and involves selling washed coal into domestic and regional markets.
Additional coal sales to a power station, and moderate volumes of export sales could expand Sese into a 3‐5 million tonnes per annum (Stage 2) operation.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21378/african-energy-resources-extends-potential-investor-reach-to-botswana-with-bse-listing-21378.html
The company will join the likes of Discovery Metals (ASX: DML), A‐Cap Resources (ASX: ACB) and CIC Energy (TSX: ELC) when it begins trading on the BSE later today.
The move will place increased investor focus on its wholly owned Sese Coal Project, where the company continues to make rapid progress towards developing the 2.7 billion tonne project.
Importantly, Botswana is an emerging global coal province widely perceived as an excellent investment destination by mining companies.
The dual-listing provides African Energy with access to an additional shareholder base within Botswana that includes a number of significant institutional investors and pension funds.
A formal ceremony will be held in Gaborone today to mark the admission of the company to the BSE.
The Sese Coal Project
The Sese Coal Project is supported by good infrastructure 25 kilometres to the east, including road, rail and a 220 kilovolt power line.
India is considered the likely market for Sese thermal coal, with demand set to increase from 50 million tonnes per annum in 2010 to 210 million tonnes per annum by 2025.
China is also experiencing a surge in demand for the resource with thermal coal imports expected to double to 213 million tonnes by 2025.
In September, African Energy Resources received results from a Concept Study that confirm the technical and commercial viability of the project.
Robust cash flows and strong operating margins are possible under a variety of scenarios that do not require new rail and port infrastructure.
The study concluded that the project could be developed through a staged approach. An initial, up to 1 million tonnes per annum operation (Stage 1) can generate cash flows from 2013 and involves selling washed coal into domestic and regional markets.
Additional coal sales to a power station, and moderate volumes of export sales could expand Sese into a 3‐5 million tonnes per annum (Stage 2) operation.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21378/african-energy-resources-extends-potential-investor-reach-to-botswana-with-bse-listing-21378.html
Baraka Energy & Resources and JV partner PetroFrontier spud oil shale play in Georgina Basin
Baraka Energy & Resources (ASX: BKP, RBD: GR) has reported that joint venture partner Petrofrontier Corp (TSX-V: PFC) has spudded the MacIntyre-2 well in the Northern Territory.
PetroFrontier is believed to be the first company to introduce open hole horizontal and multi-stage fracing technologies to unlock unconventional oil potential in Australia.
The drilling of EP127 well has been highly anticipated by investors as well as Baraka, as the company has a 25% undivided working interest.
The objective is to drill the well to 500 metres horizontally into the shale and “hot shale” Basel Arthur Creek Shale, which commences at a depth of approximately 770 metres vertical depth.
Petrofrontier then intends to frac and complete the well using multi-stage open hole techniques.
Baraka also retains an undivided 75% working interest in about 75 square kilometres around the Elkedra-7 well on EP127, where previous drilling has indicated oil shows that could lead to a discovery.
Petrofrontier has also recently completed a well at Baldwin-2 in the Georgina Basin on EP103 only 60 kilometres away.
When final results are released from MacIntyre-2, the completions crew will subsequently return to Baldwin-2 to conduct a similar program there.
It has always been PetroFrontier's strategy to frac MacIntyre-2 and Baldwin-2 back to back in order maximize cost controls.
PetroFrontier intends to use Schlumberger, the Australian representatives of Packers Plus, to run the multistage open hole completion string and conduct the fracture stimulation program.
These technologies have been widely successful in unlocking North American unconventional oil reservoirs such as the Bakken formation, and Baraka and PetroFrontier expect them to assist in establishing commercial production.
Ryder Scott Report on Potential Oil Resource Estimates
Consultants Ryder Scott Company Petroleum have written a report entitled Evaluation of the Hydrocarbon Resource Potential Pertaining to Certain Acreage Interests in the Southern Georgina Basin.
Ryder Scott Petroleum Consultants evaluated Baraka’s concessions in the Georgina Basin and estimated the lands to hold a prospective resource potential of 76.65 billion barrels of oil (unrisked, P50 estimate).
Ryder Scott estimated The Arthur Creek “Hot Shale” potential resource at 7.53 billion barrels and is the primary focus for PetroFrontier and Baraka.
Frankfurt Exchange
Meanwhile, Baraka has also announced that its application to list on the Frankfurt Exchange (FSE) has been approved and is now trading under the code (RBD: GR).
Baraka said that having initially assessed the benefits that could flow to the company and shareholders from a greater exposure to large cash rich Fund Managers and Institutions in Europe, the company carried out serious dialogue and costing to analyse the cost-reward benefits of the listing.
The company believes that it would appeal to the European investors because of the strength of the Australian currency, and the potential success of Baraka’s oil shale project in the Northern Territory, as well as its cash reserves, nil liabilities, strong management and possible acquisition/joint venture of other assets.
Baraka intends to commence a marketing and promotional program throughout Europe to educate the European investors on Baraka’s financial position and project potential, possibly with a follow up road show to selected interested Institutions either this year or in the New Year.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21379/baraka-energy-resources-and-jv-partner-petrofrontier-spud-oil-shale-play-in-georgina-basin-21379.html
PetroFrontier is believed to be the first company to introduce open hole horizontal and multi-stage fracing technologies to unlock unconventional oil potential in Australia.
The drilling of EP127 well has been highly anticipated by investors as well as Baraka, as the company has a 25% undivided working interest.
The objective is to drill the well to 500 metres horizontally into the shale and “hot shale” Basel Arthur Creek Shale, which commences at a depth of approximately 770 metres vertical depth.
Petrofrontier then intends to frac and complete the well using multi-stage open hole techniques.
Baraka also retains an undivided 75% working interest in about 75 square kilometres around the Elkedra-7 well on EP127, where previous drilling has indicated oil shows that could lead to a discovery.
Petrofrontier has also recently completed a well at Baldwin-2 in the Georgina Basin on EP103 only 60 kilometres away.
When final results are released from MacIntyre-2, the completions crew will subsequently return to Baldwin-2 to conduct a similar program there.
It has always been PetroFrontier's strategy to frac MacIntyre-2 and Baldwin-2 back to back in order maximize cost controls.
PetroFrontier intends to use Schlumberger, the Australian representatives of Packers Plus, to run the multistage open hole completion string and conduct the fracture stimulation program.
These technologies have been widely successful in unlocking North American unconventional oil reservoirs such as the Bakken formation, and Baraka and PetroFrontier expect them to assist in establishing commercial production.
Ryder Scott Report on Potential Oil Resource Estimates
Consultants Ryder Scott Company Petroleum have written a report entitled Evaluation of the Hydrocarbon Resource Potential Pertaining to Certain Acreage Interests in the Southern Georgina Basin.
Ryder Scott Petroleum Consultants evaluated Baraka’s concessions in the Georgina Basin and estimated the lands to hold a prospective resource potential of 76.65 billion barrels of oil (unrisked, P50 estimate).
Ryder Scott estimated The Arthur Creek “Hot Shale” potential resource at 7.53 billion barrels and is the primary focus for PetroFrontier and Baraka.
Frankfurt Exchange
Meanwhile, Baraka has also announced that its application to list on the Frankfurt Exchange (FSE) has been approved and is now trading under the code (RBD: GR).
Baraka said that having initially assessed the benefits that could flow to the company and shareholders from a greater exposure to large cash rich Fund Managers and Institutions in Europe, the company carried out serious dialogue and costing to analyse the cost-reward benefits of the listing.
The company believes that it would appeal to the European investors because of the strength of the Australian currency, and the potential success of Baraka’s oil shale project in the Northern Territory, as well as its cash reserves, nil liabilities, strong management and possible acquisition/joint venture of other assets.
Baraka intends to commence a marketing and promotional program throughout Europe to educate the European investors on Baraka’s financial position and project potential, possibly with a follow up road show to selected interested Institutions either this year or in the New Year.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21379/baraka-energy-resources-and-jv-partner-petrofrontier-spud-oil-shale-play-in-georgina-basin-21379.html
Phoenix Gold boosts Eastern Goldfields footprint, eyes more acquisitions along Zuleika shear
Phoenix Gold (ASX: PXG) has reached an agreement to acquire 100% of the Red Dam Gold Project in Western Australia’s Eastern Goldfields from Carbine Resources (ASX: CRB).
Red Dam covers more than 270 hectares in the heart of the Eastern Goldfields, adjacent to Phoenix’s Broads Dam Gold Project on the Zuleika Shear, a major northwest trending lineament and host to numerous multi-million ounce gold deposits.
Carbine Resources has stated that Red Dam contains more than 147,000 ounces of gold at 2.5 grams per tonne (g/t) gold, with the most recent drill program, for infill and extension work, completed in 2007.
The project is highly prospective due to previous intersections such as 5 metres at 44.07g/t gold from 32 metres, 14 metres at 8.27g/t gold from 97 metres and 18 metres at 4.88g/t gold from 76 metres.
The project area is open along strike and at depth.
Phoenix plans to begin a 5,000 metre extensional drilling program at Red Dam in the March quarter of 2012.
Phoenix managing director Jon Price told Proactive Investors today that many existing high grade hits including the 5 metres at 44.07g/t gold are outside of the current 147,000 ounce resource, and this acquisition could be just the beginning for the company.
"We will certainly be looking for new acquisitions in the future along the major shear zone of Zuleika."
The Red Dam acquisition comprises consideration of a $50,000 non-refundable cash deposit on signing the formal agreement, a $50,000 cash payment at settlement, 8 million Phoenix Gold shares (at a deemed price of $0.23) and a gross production royalty of $10 per ounce.
Phoenix and Carbine expect to execute and complete a Formal Sale Agreement by December 2011, subject to any approvals required.
Broads Dam extension
Red Dam is one of a number of strategic acquisitions made by Phoenix in recent times to extend the Broads Dam project.
This strategy is looking to be a success, with the company intersecting more gold at the project in early October.
Highlights from the reverse circulation drilling included 13 metres at 4.85g/t gold from 16 metres, 2 metres at 13.74g/t gold from 105 metres and 2 metres at 9.04g/t gold from 108 metres.
Early cash flow
Phoenix recently secured an agreement with FMR Investments to treat a parcel of ore through FMR’s 1 million tonne per annum Greenfields processing facility near Coolgardie in Western Australia.
This agreement allows Phoenix to realise early cash flow from the surface stockpiles, possibly as early as the December quarter 2011, with minimum haulage required.
Phoenix has around 19,000 ounces in stock piles at various grades which it is looking to begin processing in the December quarter.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21367/phoenix-gold-boosts-eastern-goldfields-footprint-eyes-more-acquisitions-along-zuleika-shear-21367.html
Red Dam covers more than 270 hectares in the heart of the Eastern Goldfields, adjacent to Phoenix’s Broads Dam Gold Project on the Zuleika Shear, a major northwest trending lineament and host to numerous multi-million ounce gold deposits.
Carbine Resources has stated that Red Dam contains more than 147,000 ounces of gold at 2.5 grams per tonne (g/t) gold, with the most recent drill program, for infill and extension work, completed in 2007.
The project is highly prospective due to previous intersections such as 5 metres at 44.07g/t gold from 32 metres, 14 metres at 8.27g/t gold from 97 metres and 18 metres at 4.88g/t gold from 76 metres.
The project area is open along strike and at depth.
Phoenix plans to begin a 5,000 metre extensional drilling program at Red Dam in the March quarter of 2012.
Phoenix managing director Jon Price told Proactive Investors today that many existing high grade hits including the 5 metres at 44.07g/t gold are outside of the current 147,000 ounce resource, and this acquisition could be just the beginning for the company.
"We will certainly be looking for new acquisitions in the future along the major shear zone of Zuleika."
The Red Dam acquisition comprises consideration of a $50,000 non-refundable cash deposit on signing the formal agreement, a $50,000 cash payment at settlement, 8 million Phoenix Gold shares (at a deemed price of $0.23) and a gross production royalty of $10 per ounce.
Phoenix and Carbine expect to execute and complete a Formal Sale Agreement by December 2011, subject to any approvals required.
Broads Dam extension
Red Dam is one of a number of strategic acquisitions made by Phoenix in recent times to extend the Broads Dam project.
This strategy is looking to be a success, with the company intersecting more gold at the project in early October.
Highlights from the reverse circulation drilling included 13 metres at 4.85g/t gold from 16 metres, 2 metres at 13.74g/t gold from 105 metres and 2 metres at 9.04g/t gold from 108 metres.
Early cash flow
Phoenix recently secured an agreement with FMR Investments to treat a parcel of ore through FMR’s 1 million tonne per annum Greenfields processing facility near Coolgardie in Western Australia.
This agreement allows Phoenix to realise early cash flow from the surface stockpiles, possibly as early as the December quarter 2011, with minimum haulage required.
Phoenix has around 19,000 ounces in stock piles at various grades which it is looking to begin processing in the December quarter.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21367/phoenix-gold-boosts-eastern-goldfields-footprint-eyes-more-acquisitions-along-zuleika-shear-21367.html
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