Algae.Tec's (ASX: AEB, FWB: GZA:GR, ALGXY: US) managing director Peter Hatfull has increased his stake in the company through an on-market trade.
Hatfull purchased 45,000 shares for his super fund for a consideration of $24,750, providing an average entry price of $0.55.
Hatfull now holds 8.16 million shares in his own name (8 million of these escrowed until January 2013), along with another 1.5 million in his super fund.
The advanced renewable oil company is currently ticking off some major global milestones, and just last week a deal was signed with Shandong Kerui Group Holding to build the first biofuels and carbon capture facility in China.
In more positive news, recently Algae.Tec signed a biofuels memorandum of understanding with the European airline Lufthansa, and announced a biofuels production and carbon capture deal with the Sri Lanka subsidiary of industrial giant Holcim.
Algae.Tec has been well supported by the market, and recently completed a A$5 million placement to sophisticated investors through Patersons Securities. Algae.Tec was one of the best performing IPO's of 2011.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24583/algaetec-director-peter-hatfull-increases-stake-with-on-market-trade-24583.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 26 January 2012
Consegna Group in A$1.5m placement to sophisticated investors to advance drug delivery technology
Consegna Group (ASX: CGP) has received a major vote of confidence in the company's operations from the market, after completing a private placement of shares and unlisted options to sophisticated investors.
The placement comprises 37.5 million shares at $0.04 to raise A$1.5 million, along with 12.5 million options with an exercise price of $0.035 before January 2013.
Consegna has already outlined that the funds will be used to develop the company’s Linguet buccal drug delivery technology, along with funding foreign licensing and overseas investment opportunities.
Linguet is a tablet or lozenge formulation technology that releases an active drug ingredient in the mouth and which facilitates absorption through the oral mucosa.
Highlighting the potential of the drug, the oral modified release delivery market was valued at $49 billion in 2009 and is estimated to double by 2016.
Consegna to start BreatheAssist commercialisation process
Consegna continues to progress commercialisation of its BreatheAssist device, and in November last year started negotiating licences. BreatheAssist is a multi-functional nasal dilation technology that enhanced nasal airflow by 37% in a clinical study.
Importantly, there are multiple licensing opportunities for BreatheAssist, including sport, medication delivery, snoring cessation, aiding sleep apnoea and the filtration of pollen and other airborne pollutants.
Consegna reaffirmed its plan recently for 2012 is to seek international licensing deals specifically for the BreatheAssist technology. The company is aiming to complete its first transaction by the June quarter of this year.
Further improved production samples of one of the variants of BreatheAssist will be available in February this year, which is expected to assist in maximising licensing negotiations.
Besides its BreathAssist technology, Consegna has also developed the Vibrovein technologies, which is a vibrating device that attaches to any syringe to substantially reduce penetration resistance. Consegna is targeting the $120 billion injectable drug market.
Shareholder Balam Global continues to increase stake
Substantial shareholder Balam Global continues to increase its exposure to Consegna, and earlier in the month purchased more shares on market to increase its stake to 15.47%.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24581/consegna-group-in-a15m-placement-to-sophisticated-investors-to-advance-drug-delivery-technology-24581.html
The placement comprises 37.5 million shares at $0.04 to raise A$1.5 million, along with 12.5 million options with an exercise price of $0.035 before January 2013.
Consegna has already outlined that the funds will be used to develop the company’s Linguet buccal drug delivery technology, along with funding foreign licensing and overseas investment opportunities.
Linguet is a tablet or lozenge formulation technology that releases an active drug ingredient in the mouth and which facilitates absorption through the oral mucosa.
Highlighting the potential of the drug, the oral modified release delivery market was valued at $49 billion in 2009 and is estimated to double by 2016.
Consegna to start BreatheAssist commercialisation process
Consegna continues to progress commercialisation of its BreatheAssist device, and in November last year started negotiating licences. BreatheAssist is a multi-functional nasal dilation technology that enhanced nasal airflow by 37% in a clinical study.
Importantly, there are multiple licensing opportunities for BreatheAssist, including sport, medication delivery, snoring cessation, aiding sleep apnoea and the filtration of pollen and other airborne pollutants.
Consegna reaffirmed its plan recently for 2012 is to seek international licensing deals specifically for the BreatheAssist technology. The company is aiming to complete its first transaction by the June quarter of this year.
Further improved production samples of one of the variants of BreatheAssist will be available in February this year, which is expected to assist in maximising licensing negotiations.
Besides its BreathAssist technology, Consegna has also developed the Vibrovein technologies, which is a vibrating device that attaches to any syringe to substantially reduce penetration resistance. Consegna is targeting the $120 billion injectable drug market.
Shareholder Balam Global continues to increase stake
Substantial shareholder Balam Global continues to increase its exposure to Consegna, and earlier in the month purchased more shares on market to increase its stake to 15.47%.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24581/consegna-group-in-a15m-placement-to-sophisticated-investors-to-advance-drug-delivery-technology-24581.html
Legacy Iron Ore appoints non-executive director
Legacy Iron Ore (ASX: LCY) has appointed Timothy Turner, who has previously been non-executive chairman, as a non-executive director.
A partner with accountants Hewitt Turner and Gelevits, Turner specialises in mergers and acquisitions, corporate and tax structuring, due diligence reporting, new ventures and business development consulting.
Turner is currently non-executive director of Cape Lambert Resources, International Petroleum and African Petroleum Corporation.
Meanwhile, Legacy is continuing to step up the pace at the Mt Bevan Iron Ore Project delivering another set of very positive results to the market.
Drilling has now consistently intersected the thick, shallowly dipping magnetite bearing banded iron formation (BIF) unit over an extensive 10 kilometre long strike.
On top of that Davis Tube Recovery (DTR) testing has again displayed high level weight recoveries and concentrate grades with low silica and negligible phosphorus and sulphur.
Using a relatively coarse grind size of P80/50 – 55 microns, DTR testing shows achievable grades of 69% to 70% iron, with high weight recoveries of circa 45%.
SRK Consulting is currently working on a JORC Inferred Resource for the whole Western BIF target, with results forecast to be delivered at the end of this month.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24580/legacy-iron-ore-appoints-non-executive-director--24580.html
A partner with accountants Hewitt Turner and Gelevits, Turner specialises in mergers and acquisitions, corporate and tax structuring, due diligence reporting, new ventures and business development consulting.
Turner is currently non-executive director of Cape Lambert Resources, International Petroleum and African Petroleum Corporation.
Meanwhile, Legacy is continuing to step up the pace at the Mt Bevan Iron Ore Project delivering another set of very positive results to the market.
Drilling has now consistently intersected the thick, shallowly dipping magnetite bearing banded iron formation (BIF) unit over an extensive 10 kilometre long strike.
On top of that Davis Tube Recovery (DTR) testing has again displayed high level weight recoveries and concentrate grades with low silica and negligible phosphorus and sulphur.
Using a relatively coarse grind size of P80/50 – 55 microns, DTR testing shows achievable grades of 69% to 70% iron, with high weight recoveries of circa 45%.
SRK Consulting is currently working on a JORC Inferred Resource for the whole Western BIF target, with results forecast to be delivered at the end of this month.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24580/legacy-iron-ore-appoints-non-executive-director--24580.html
Continental Coal beats its own export record, ships 30% more thermal coal in December quarter
Continental Coal (ASX: CCC) subsidiary Mashala Resources has exceeded previous record exports of high quality export thermal coal through the Richards Bay Coal Terminal by more than 30% for the December 2011 quarter.
The company previously announced export sales from the Ferreira Coal Mine during the December quarter were forecast to exceed the previous quarter’s export sales of 130,995 tonnes and previous record export sales of 136,400 tonnes achieved in the June 2011 quarter.
Preliminary results for the December quarter also show unaudited revenue and earnings before interest, taxes, depreciation and amortisation have exceeded the September quarter unaudited results by over 35% and 70% respectively.
New Broad Based BEE Partner
Continental and the Sishen Iron Ore Company Community Development Trust (SIOC-cdt) are finalising the few remaining conditions precedent for Subscription and Shareholder Agreements under which SIOC-cdt has become the company’s new partner in South Africa.
SIOC-cdt is a Broad Based Black Economic Empowerment Company that holds a 3% interest in Sishen Iron Ore Company, the operator of the Sishen, Sishen South and Thabazimbi iron ore mines, Africa’s largest iron ore mining operations.
Importantly, the deal attracts an initial A$16.8 million (ZAR140 million) investment which will be used to further fund the growth and development of Continental’s thermal coal mining business in South Africa.
SIOC-cdt, which has become a 26% partner in the company's South African subsidiary, will invest a further $A9.1 million (ZAR75 million), which will satisfy the A$26.2 million (ZAR215 million) loan advances made by Continental Coal on behalf of its previous partner.
Following completion of the conditions precedent, which is expected to occur within the next two weeks, settlement will take place and the funding will be advanced to Continental.
ABSA Capital Debt Funding
Meanwhile, Continental has received committed finance from ABSA Capital for aggregate debt facilities of around US$65 million.
ABSA Capital is a division of Absa Bank, one of South Africa’s largest financial service providers and a subsidiary of Barclays Bank.
The facilities, which comprise US$35 million to fund the development costs of the Penumbra Coal Mine, have received all necessary credit approvals and all associated due diligence has been completed.
Drawdown of the funding will begin upon Continental funding up-front the balance of the project’s development costs not met from the US$35 million tranche from its existing cashflow and once it has satisfied the few remaining conditions precedent. First drawdown is scheduled for later in the current March quarter.
Laying the Foundations for Strong Growth
Continental has laid the foundations and has funding in place for substantial growth and a forecast increase in earnings.
The company has a current run of mine production of 2 million tonnes per annum of thermal coal with sales to the international export and domestic markets.
Continental also has a third coal mine currently under development that is forecast to double export thermal coal sales and group earnings in 2012.
A fourth mine Bankable Feasibility Study has been completed confirming a technically and economically viable operation that is forecast again to again double export thermal coal sales and group earnings in 2013.
This alone has earned Continental a target price of $0.56 per share, well over double the company’s current trading price of $0.18, from a broker.
The investment dealer maintained its ‘buy’ rating on Continental and increased its price target from $0.52 after the company released the preliminary draft Bankable Feasibility Study for its De Wittekrans Coal Project.
When in operation the project is expected to produce over 0.8 million tonnes of export sales, over 1.7 million tonnes of domestic sales, and annual earnings before interest, taxes, depreciation and amortisation in excess of US$50 million.
Continental’s goal is to achieve 7 million tonnes per annum of run of mine coal production in 2013.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24577/continental-coal-beats-its-own-export-record-ships-30-more-thermal-coal-in-december-quarter-24577.html
The company previously announced export sales from the Ferreira Coal Mine during the December quarter were forecast to exceed the previous quarter’s export sales of 130,995 tonnes and previous record export sales of 136,400 tonnes achieved in the June 2011 quarter.
Preliminary results for the December quarter also show unaudited revenue and earnings before interest, taxes, depreciation and amortisation have exceeded the September quarter unaudited results by over 35% and 70% respectively.
New Broad Based BEE Partner
Continental and the Sishen Iron Ore Company Community Development Trust (SIOC-cdt) are finalising the few remaining conditions precedent for Subscription and Shareholder Agreements under which SIOC-cdt has become the company’s new partner in South Africa.
SIOC-cdt is a Broad Based Black Economic Empowerment Company that holds a 3% interest in Sishen Iron Ore Company, the operator of the Sishen, Sishen South and Thabazimbi iron ore mines, Africa’s largest iron ore mining operations.
Importantly, the deal attracts an initial A$16.8 million (ZAR140 million) investment which will be used to further fund the growth and development of Continental’s thermal coal mining business in South Africa.
SIOC-cdt, which has become a 26% partner in the company's South African subsidiary, will invest a further $A9.1 million (ZAR75 million), which will satisfy the A$26.2 million (ZAR215 million) loan advances made by Continental Coal on behalf of its previous partner.
Following completion of the conditions precedent, which is expected to occur within the next two weeks, settlement will take place and the funding will be advanced to Continental.
ABSA Capital Debt Funding
Meanwhile, Continental has received committed finance from ABSA Capital for aggregate debt facilities of around US$65 million.
ABSA Capital is a division of Absa Bank, one of South Africa’s largest financial service providers and a subsidiary of Barclays Bank.
The facilities, which comprise US$35 million to fund the development costs of the Penumbra Coal Mine, have received all necessary credit approvals and all associated due diligence has been completed.
Drawdown of the funding will begin upon Continental funding up-front the balance of the project’s development costs not met from the US$35 million tranche from its existing cashflow and once it has satisfied the few remaining conditions precedent. First drawdown is scheduled for later in the current March quarter.
Laying the Foundations for Strong Growth
Continental has laid the foundations and has funding in place for substantial growth and a forecast increase in earnings.
The company has a current run of mine production of 2 million tonnes per annum of thermal coal with sales to the international export and domestic markets.
Continental also has a third coal mine currently under development that is forecast to double export thermal coal sales and group earnings in 2012.
A fourth mine Bankable Feasibility Study has been completed confirming a technically and economically viable operation that is forecast again to again double export thermal coal sales and group earnings in 2013.
This alone has earned Continental a target price of $0.56 per share, well over double the company’s current trading price of $0.18, from a broker.
The investment dealer maintained its ‘buy’ rating on Continental and increased its price target from $0.52 after the company released the preliminary draft Bankable Feasibility Study for its De Wittekrans Coal Project.
When in operation the project is expected to produce over 0.8 million tonnes of export sales, over 1.7 million tonnes of domestic sales, and annual earnings before interest, taxes, depreciation and amortisation in excess of US$50 million.
Continental’s goal is to achieve 7 million tonnes per annum of run of mine coal production in 2013.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24577/continental-coal-beats-its-own-export-record-ships-30-more-thermal-coal-in-december-quarter-24577.html
Universal Coal: worth more than three times current value says broker
Universal Coal (ASX: UNV) has received a buy recommendation from DJ Carmichael, with a target price of $0.83 - which is more than three times the last traded price of $0.24.
The following is an extract from the report:
UNV is an ASX listed, South African focused coal exploration and development company holding interests in three thermal coal projects in the Witbank Coalfield and three coking coal projects in the Limpopo Coalfield, with ownership structures varying from 30% to 70.5% on a staged earn-in basis.
UNV has responded to media speculation surrounding its coking coal assets and advises that it is reviewing the appointment of advisors to assist the company with any formal approach it may receive on these assets.
Our recommendation and price target remain unchanged but the response does indicate the level of interest in the coking coal assets and signals a high level of M & A activity in the sector in the year ahead.
Key points
The Combined Berenice / Cygnus coking coal project resource was vastly increased in 2H2012 to 1.32Bt of which 402.4Mt (30%) is in the measured and indicated categories. Of this amount, and after taking into account geological losses, UNV estimate mineable resources of 479Mt, chiefly composed of a middling product and a smaller percentage of high grade coking coal.
As a result of the resource upgrade, UNV s interest in the project has risen
to 40% from 22%. A Scoping Study was initiated in 2H2012.
As yet UNV has not received a formal approach but the company has now indicated that a number of Indian and Chinese groups have expressed interest in the coking coal assets and UNV has held a number of discussion from interested parties involved in energy and the steel sector.
The size of the coking coal projects is an attraction for groups seeking long-term feed into steel operations. The project is ideally situated with respect to rail and road infrastructure which increases the level of interest further.
We believe the development is positive for UNV and could result in a formal offer which could potentially inject cash into UNV and potentially provide a strategic partner already embedded within the industry to provide off-take or the financial capacity to play a significant role in project development, possibly both.
We await further news and in the meantime, maintain our current buy recommendation and $0.83 valuation, reduced slightly for the reduction in cash since our previous note.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24570/universal-coal-worth-more-than-three-times-current-value-says-broker-24570.html
The following is an extract from the report:
UNV is an ASX listed, South African focused coal exploration and development company holding interests in three thermal coal projects in the Witbank Coalfield and three coking coal projects in the Limpopo Coalfield, with ownership structures varying from 30% to 70.5% on a staged earn-in basis.
UNV has responded to media speculation surrounding its coking coal assets and advises that it is reviewing the appointment of advisors to assist the company with any formal approach it may receive on these assets.
Our recommendation and price target remain unchanged but the response does indicate the level of interest in the coking coal assets and signals a high level of M & A activity in the sector in the year ahead.
Key points
The Combined Berenice / Cygnus coking coal project resource was vastly increased in 2H2012 to 1.32Bt of which 402.4Mt (30%) is in the measured and indicated categories. Of this amount, and after taking into account geological losses, UNV estimate mineable resources of 479Mt, chiefly composed of a middling product and a smaller percentage of high grade coking coal.
As a result of the resource upgrade, UNV s interest in the project has risen
to 40% from 22%. A Scoping Study was initiated in 2H2012.
As yet UNV has not received a formal approach but the company has now indicated that a number of Indian and Chinese groups have expressed interest in the coking coal assets and UNV has held a number of discussion from interested parties involved in energy and the steel sector.
The size of the coking coal projects is an attraction for groups seeking long-term feed into steel operations. The project is ideally situated with respect to rail and road infrastructure which increases the level of interest further.
We believe the development is positive for UNV and could result in a formal offer which could potentially inject cash into UNV and potentially provide a strategic partner already embedded within the industry to provide off-take or the financial capacity to play a significant role in project development, possibly both.
We await further news and in the meantime, maintain our current buy recommendation and $0.83 valuation, reduced slightly for the reduction in cash since our previous note.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24570/universal-coal-worth-more-than-three-times-current-value-says-broker-24570.html
South Boulder Mines’ JV partner Independence Group delivers maiden nickel Resource for Rosie
South Boulder Mines’ (ASX: STB) joint venture partner Independence Group (ASX: IGO) has completed an initial JORC Resource of 1.7 million tonnes at 1.7% nickel, 0.4% copper and 1.9 grams per tonne (g/t) platinum and palladium for the Rosie deposit within the Duketon Joint Venture.
The Duketon Joint Venture is centred 120 kilometres north of Laverton in Western Australia.
The potential to grow the Resource at Rosie is increased by the fact that the initial Resource does not include the C2 mineralised zones located about 1.7 kilometres to the northwest.
The Resource occurs over a vertical depth of about 600 metres and a strike length of 1100 metres.
Mineralisation remains open along strike and at depth.
The Rosie mineralisation is of medium tenor (8-10% nickel), has a nickel/copper ratio of about 10:1 and has significant platinum and palladium credits.
The platinum tenor averages about 3g/t and is moderately variable, typically in the range of 2-6g/t. The palladium tenor averages about 3-4g/t and is more variable, typically in the range of 1-10g/t.
Analysis of platinum group elements indicates that the mineralisation may also have significant ruthenium and rhodium concentrations.
The mineralogy of the system appears to be similar to typical Kambalda-style magmatic nickel systems, with pyrrhotite, pentlandite and chalcopyrite as the dominant sulphides in the primary portion of the mineralised zone.
Three mineralised domains were modelled – a higher grade Contact domain with lower grade Footwall and Hanging Wall domains. Only the Contact domain is included in the maiden Resource.
A further phase of exploration at Duketon is scheduled to begin in February testing a number of targets.
Exploration will test the strike and depth extensions of the Rosie deposit targeting thicker, higher grade zones in the Contact mineralised domain, possible repeats of Rosie-style mineralisation between Rosie and the C2 disseminated nickel sulphide discovery 1.7 kilometres to the northwest and higher grade zones within C2.
Under the Duketon joint venture with South Boulder, Independence Group can earn a 70% interest in the nickel rights by completing a Bankable Feasibility Study within five years of the grant of the relevant tenement.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24579/south-boulder-mines-jv-partner-independence-group-delivers-maiden-nickel-resource-for-rosie--24579.html
The Duketon Joint Venture is centred 120 kilometres north of Laverton in Western Australia.
The potential to grow the Resource at Rosie is increased by the fact that the initial Resource does not include the C2 mineralised zones located about 1.7 kilometres to the northwest.
The Resource occurs over a vertical depth of about 600 metres and a strike length of 1100 metres.
Mineralisation remains open along strike and at depth.
The Rosie mineralisation is of medium tenor (8-10% nickel), has a nickel/copper ratio of about 10:1 and has significant platinum and palladium credits.
The platinum tenor averages about 3g/t and is moderately variable, typically in the range of 2-6g/t. The palladium tenor averages about 3-4g/t and is more variable, typically in the range of 1-10g/t.
Analysis of platinum group elements indicates that the mineralisation may also have significant ruthenium and rhodium concentrations.
The mineralogy of the system appears to be similar to typical Kambalda-style magmatic nickel systems, with pyrrhotite, pentlandite and chalcopyrite as the dominant sulphides in the primary portion of the mineralised zone.
Three mineralised domains were modelled – a higher grade Contact domain with lower grade Footwall and Hanging Wall domains. Only the Contact domain is included in the maiden Resource.
A further phase of exploration at Duketon is scheduled to begin in February testing a number of targets.
Exploration will test the strike and depth extensions of the Rosie deposit targeting thicker, higher grade zones in the Contact mineralised domain, possible repeats of Rosie-style mineralisation between Rosie and the C2 disseminated nickel sulphide discovery 1.7 kilometres to the northwest and higher grade zones within C2.
Under the Duketon joint venture with South Boulder, Independence Group can earn a 70% interest in the nickel rights by completing a Bankable Feasibility Study within five years of the grant of the relevant tenement.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24579/south-boulder-mines-jv-partner-independence-group-delivers-maiden-nickel-resource-for-rosie--24579.html
Resource Star: update on Toronto listed Cue Resources, no further interest in acquiring shares
Resource Star (ASX: RSL) has updated the market on the company's interests in the Toronto listed Cue Resources (CVE: CUE)
The company towards the end of 2011 announced that it would not proceed with plans for a strategic interest in Cue, from its major shareholder Red Rock Resources plc (LON: RRR) and Regency Mines plc (LON: RGM).
Resource Star has now advised that on 24 January 2011 Red Rock announced that it had agreed to sell all its interest in Cue Resources to Uranium Energy Corp (NYSE-AMEX:UEC), which has agreed to acquire 100% of Cue Resources for common stock via a plan of arrangement.
On completion of the sale, currently expected in late March 2012, Red Rock will receive common stock in Uranium Energy Corp with a current market value of approximately A$1.33 million.
This was an unsolicited approach by Uranium Energy Corp to Cue Resources, and one that in prevailing market conditions the Cue Board felt was in the best interests of shareholders to accept. As a result of Red Rock’s decision to accept Uranium Energy Corp’s offer, Resource Star has no further interest in acquiring shares in Cue Resources.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24575/resource-star-update-on-toronto-listed-cue-resources-no-further-interest-in-acquiring-shares-24575.html
The company towards the end of 2011 announced that it would not proceed with plans for a strategic interest in Cue, from its major shareholder Red Rock Resources plc (LON: RRR) and Regency Mines plc (LON: RGM).
Resource Star has now advised that on 24 January 2011 Red Rock announced that it had agreed to sell all its interest in Cue Resources to Uranium Energy Corp (NYSE-AMEX:UEC), which has agreed to acquire 100% of Cue Resources for common stock via a plan of arrangement.
On completion of the sale, currently expected in late March 2012, Red Rock will receive common stock in Uranium Energy Corp with a current market value of approximately A$1.33 million.
This was an unsolicited approach by Uranium Energy Corp to Cue Resources, and one that in prevailing market conditions the Cue Board felt was in the best interests of shareholders to accept. As a result of Red Rock’s decision to accept Uranium Energy Corp’s offer, Resource Star has no further interest in acquiring shares in Cue Resources.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24575/resource-star-update-on-toronto-listed-cue-resources-no-further-interest-in-acquiring-shares-24575.html
Wednesday, 25 January 2012
Kalaallit Nunaat - Country of the Greenlanders
As a general rule, the most successful man in life is the man who has the best information
Greenland, the largest island in the world - Australia is considered a continent - and the only territory ever to leave the European Union (Greenland joined the European Community, now the EU, with Denmark in 1973. Greenland dropped its EU membership over tightened fishing quotas in 1985) is located in the North Atlantic Ocean adjacent to the Canadian arctic archipelago. Its maximum length is 2,655 kilometers (km), maximum distance from east to west is 1,290 km and the length of its coast, which is deeply indented with fiords, is estimated at 5,800 km.
About 84 per cent of Greenland is ice cap that can be up to 3kms thick. Approximately one-twentieth of the world's ice and one-quarter of the earth's surface ice is found in Greenland – the ice-free zone around the ice cap is up to 300 kms wide and covers an area of 410,000 km² (area of Germany is 357,000 km).
Eric the Red discovered Greenland in the 10th century, or as the Inuits called the country back then, Inuit Nunaat - country of human beings. Today the Inuits call Greenland Kalaallit Nunaat - Country of the Greenlanders.
The population of Greenland is 56,648 with 14,719 inhabitants living in the capital Nuuk (formerly Godthab). The majority of Greenland’s population live in towns along the fjords in the southwest of the country where the climate is relatively mild. The second largest city is Sisimiut, followed by Ilulissat and Qaqortoq.
While geologically part of North America, Greenland is, historically and economically, closely tied to Europe. It’s a bilingual country, Greenlandic is the main language and Danish is the other with English also widely spoken.
Greenland has had “Self Rule” since June 21, 2009 (including control over minerals and petroleum) - which means that the country has assumed making the political decisions that previously come from Denmark.
The only way to travel directly to Greenland is by air to one of the main gateways: Kangerlussuaq (Søndre Strønfjord) in the West or Narsarsuaq in the South, both former American air bases. There are no roads between the towns on the coast so people travel by airplanes, helicopters or by boat – Air Greenland, with ten planes and 600 employees, has just announced regular flights, starting this summer, between Nuuk and Iqaluit.
Travel by sea is possible throughout the year from Nanortalik, in the South, to Sisimiut in the north west (ports have a year round shipping season), but travel from Sisimiut to sites further north doesn’t start till May, at the earliest, because of ice. A report by the World Meteorology Organization (WMO) shows that temperatures in Greenland have risen around 3C above average over the last year.
The WMO also reported that December 2011 was much warmer than usual with rainfall, instead of snow, recorded for the first time in Kuujjuaq.
In 1721, the Danish-Norwegian priest Hans Egede came to spread the gospel in Greenland. Apparently Hans split his time between missionary work and prospecting for mineral resources. This author is not sure of his spiritual success among Greenland’s citizens but Hans did report finding graphite twenty years after arriving.
Coal was being mined in the Disko Bay area by German miners in 1780, in 1851-1852 copper was being mined by an English company.
Cryolite was valuable for soda and enamel production and in the 1890s was recognized as crucial for the production of aluminium. Mining in Greenland was dominated by cryolite production at Ivittuut from 1900 on. The Cryolite mine, operated by the Danish Cryolite Company, was abandoned in 1987 after 130 years of mining.
The lead-zinc mine in Mestersvig, in central East Greenland, was operated by the Northern Mining Company from 1953-59.
The Black Angel lead-zinc-silver mine, near Uummannaq in West Greenland, is 400 km north of the Arctic Circle and was operated by Cominco Ltd from 1973-86, and from 1986 to 1990 by Boliden AB. The mine was closed with ore reserves of approximately 2Mt remaining – this mine will be reopened.
As mentioned approximately 80% of Greenland is covered by the ice sheet, with the exposed area forming a fringe around the coast. These non ice covered coastal areas - geological terrain that is simply an extension of the *Canadian Shield - expose numerous mineral belts that are highly prospective for gold, nickel, platinum group elements (PGE), copper, lead, zinc, molybdenum, tantalum and niobium, iron ore, several forms of industrial minerals, diamonds, rubies and rare earth elements (REEs).
*Greenland’s geology is continuous with that of Canada and Northern Europe. It includes:
ExxonMobil, Chevron, Husky, Encana, the UK’s Cairn Energy and Denmark’s Dong Energy are among the companies that have either already won or applied for exploration licenses from Greenland’s Bureau of Minerals and Petroleum for acreage.
The Government of Greenland recognizes the future of the country lies in the development of its mineral resources and public pressure is increasing for better schools, health care and retirement plans. With the Danish government looking to reduce its subsidy of Greenland (approximately half of government revenues comes from grants, about $650 million in 2009) and an economy historically dependant on shrimping, declining fishing (82% of exports), sealing and fish and seal product exports (Europe has banned seal product imports) development of resource projects is now high on the governments list of priorities.
In May 2007 a US aluminum producer concluded a memorandum of understanding with the Greenland Home Rule Government to build an aluminum smelter and a power generation facility in the Maniitsoq area – Greenland has abundant hydropower potential.
Bureau of Minerals and Petroleum (BMP)
The BMP is the authoritative body for all administration in relation to the mineral resources industry in Greenland. Licensees only have to apply to one place to obtain all their necessary licenses – the BMP is very much a ‘one stop shop’ – ensuring efficient administration in the area of mineral resources. The BMP has the regulatory authority to review, evaluate and approve all SIA’s, licenses and facilitate public hearing processes.
Process of Mineral Applications
The BMP took over from the Danish authorities in 1998. Because of a lack of awareness of Greenland’s mineral/petroleum potential the resource extraction industry suffered a general decline in interest. This trend continued to the all time low in 2002.
The BMP designed a resource awareness marketing strategy focused on the two biggest mining countries in the world: Australia and Canada.
From 17 exclusive licenses in 2002 the number grew to more than 70 in 2010, and in April 2011 the number had grown to 94 including current applications.
In the same period the number of non-exclusive prospecting licenses went from six in 2002 to 20 in April 2011.
A list can be downloaded here showing all active licences and current applications.
From 2003 to 2010 the Government of Greenland issued four exploitation licenses for mining activities; Angel Mining is producing gold; Black Angel Mining has a mine under construction; QuadraFNX Minnig Ltd. is waiting for higher market prices and one mine is temporarily closed (Minelco). London Mining wants to see the Isua iron ore mine, which hugs Greenland’s ice sheet about 150 kms northeast of Nuuk, in operation by 2015.
Canada experienced a growth in expenditures (exploration expenses and activities) of 35 percent from CAD $1.911 billion in 2006 to CAD $2.624 billion in 2010. Greenland, in the same period, experienced an increase of almost 390 percent from DKK 135 million to a record DKK 524.5 million in 2010.
Australia experienced a growth between of 116 percent from AUD 1.028 billion in 2004 to AUD 2.223 billion in 2009.
Australian and Canadian listed company’s represent more than 55 percent of the resource sector companies currently working in Greenland.
Conclusion
Greenland is politically stable, maintains a long lived democracy and tax system, is open to foreign investment, and is mining friendly being eager to attain political independence from Denmark.
But how will Greenland pay for the responsibilities it may eventually take over from the Danish state? The main challenge to securing greater self-government is overcoming the reliance on the annual grant Greenland receives from Denmark and replacing it with revenues generated from within the country. Mineral mining and oil and gas production would ease this dependence. Fortunately Greenland is highly prospective for minerals and is hugely underexplored - the country is a new, and one of the last, frontiers for mineral and petroleum exploration.
"…climate change has already opened new areas for the exploitation of mineral resources as the ice cap is retreating. And in combination with the political and economical control of our mineral resources it will open new opportunities for Greenland to gain more economical and political independence from Denmark.” Josef Motzfeldt, MP in Greenland’s Home Rule government
Aheadoftheherd.com will be featuring two companies working in Greenland in future articles. The first has a 100% interest in 1,300 sq km being highly prospective for rare earths, diamonds, specialty and base metals. Our second featured company has acquired an exclusive exploration license for 4,841 sq km covering numerous outcrops of nickel-copper sulphide and other metals.
Greenland should be on every resource investors radar screen. Is it on yours?
If not, maybe it should be.
Greenland, the largest island in the world - Australia is considered a continent - and the only territory ever to leave the European Union (Greenland joined the European Community, now the EU, with Denmark in 1973. Greenland dropped its EU membership over tightened fishing quotas in 1985) is located in the North Atlantic Ocean adjacent to the Canadian arctic archipelago. Its maximum length is 2,655 kilometers (km), maximum distance from east to west is 1,290 km and the length of its coast, which is deeply indented with fiords, is estimated at 5,800 km.
About 84 per cent of Greenland is ice cap that can be up to 3kms thick. Approximately one-twentieth of the world's ice and one-quarter of the earth's surface ice is found in Greenland – the ice-free zone around the ice cap is up to 300 kms wide and covers an area of 410,000 km² (area of Germany is 357,000 km).
Eric the Red discovered Greenland in the 10th century, or as the Inuits called the country back then, Inuit Nunaat - country of human beings. Today the Inuits call Greenland Kalaallit Nunaat - Country of the Greenlanders.
The population of Greenland is 56,648 with 14,719 inhabitants living in the capital Nuuk (formerly Godthab). The majority of Greenland’s population live in towns along the fjords in the southwest of the country where the climate is relatively mild. The second largest city is Sisimiut, followed by Ilulissat and Qaqortoq.
While geologically part of North America, Greenland is, historically and economically, closely tied to Europe. It’s a bilingual country, Greenlandic is the main language and Danish is the other with English also widely spoken.
Greenland has had “Self Rule” since June 21, 2009 (including control over minerals and petroleum) - which means that the country has assumed making the political decisions that previously come from Denmark.
The only way to travel directly to Greenland is by air to one of the main gateways: Kangerlussuaq (Søndre Strønfjord) in the West or Narsarsuaq in the South, both former American air bases. There are no roads between the towns on the coast so people travel by airplanes, helicopters or by boat – Air Greenland, with ten planes and 600 employees, has just announced regular flights, starting this summer, between Nuuk and Iqaluit.
Travel by sea is possible throughout the year from Nanortalik, in the South, to Sisimiut in the north west (ports have a year round shipping season), but travel from Sisimiut to sites further north doesn’t start till May, at the earliest, because of ice. A report by the World Meteorology Organization (WMO) shows that temperatures in Greenland have risen around 3C above average over the last year.
The WMO also reported that December 2011 was much warmer than usual with rainfall, instead of snow, recorded for the first time in Kuujjuaq.
In 1721, the Danish-Norwegian priest Hans Egede came to spread the gospel in Greenland. Apparently Hans split his time between missionary work and prospecting for mineral resources. This author is not sure of his spiritual success among Greenland’s citizens but Hans did report finding graphite twenty years after arriving.
Coal was being mined in the Disko Bay area by German miners in 1780, in 1851-1852 copper was being mined by an English company.
Cryolite was valuable for soda and enamel production and in the 1890s was recognized as crucial for the production of aluminium. Mining in Greenland was dominated by cryolite production at Ivittuut from 1900 on. The Cryolite mine, operated by the Danish Cryolite Company, was abandoned in 1987 after 130 years of mining.
The lead-zinc mine in Mestersvig, in central East Greenland, was operated by the Northern Mining Company from 1953-59.
The Black Angel lead-zinc-silver mine, near Uummannaq in West Greenland, is 400 km north of the Arctic Circle and was operated by Cominco Ltd from 1973-86, and from 1986 to 1990 by Boliden AB. The mine was closed with ore reserves of approximately 2Mt remaining – this mine will be reopened.
As mentioned approximately 80% of Greenland is covered by the ice sheet, with the exposed area forming a fringe around the coast. These non ice covered coastal areas - geological terrain that is simply an extension of the *Canadian Shield - expose numerous mineral belts that are highly prospective for gold, nickel, platinum group elements (PGE), copper, lead, zinc, molybdenum, tantalum and niobium, iron ore, several forms of industrial minerals, diamonds, rubies and rare earth elements (REEs).
*Greenland’s geology is continuous with that of Canada and Northern Europe. It includes:
- Archaean cratons - potential for diamonds, gold, REE
- Palaeoproterozoic mobile belts - potential for base metals, PGE’s, gold and tantalum
- Lower Palaeozoic sediments - potential for base metals
- Carboniferous Cretaceous sediments - potential for coal
- Lower Tertiary intrusive complexes, the Skýrgaard intrusion being the most important in terms of gold and PGE potential
ExxonMobil, Chevron, Husky, Encana, the UK’s Cairn Energy and Denmark’s Dong Energy are among the companies that have either already won or applied for exploration licenses from Greenland’s Bureau of Minerals and Petroleum for acreage.
The Government of Greenland recognizes the future of the country lies in the development of its mineral resources and public pressure is increasing for better schools, health care and retirement plans. With the Danish government looking to reduce its subsidy of Greenland (approximately half of government revenues comes from grants, about $650 million in 2009) and an economy historically dependant on shrimping, declining fishing (82% of exports), sealing and fish and seal product exports (Europe has banned seal product imports) development of resource projects is now high on the governments list of priorities.
In May 2007 a US aluminum producer concluded a memorandum of understanding with the Greenland Home Rule Government to build an aluminum smelter and a power generation facility in the Maniitsoq area – Greenland has abundant hydropower potential.
Bureau of Minerals and Petroleum (BMP)
The BMP is the authoritative body for all administration in relation to the mineral resources industry in Greenland. Licensees only have to apply to one place to obtain all their necessary licenses – the BMP is very much a ‘one stop shop’ – ensuring efficient administration in the area of mineral resources. The BMP has the regulatory authority to review, evaluate and approve all SIA’s, licenses and facilitate public hearing processes.
Process of Mineral Applications
The BMP took over from the Danish authorities in 1998. Because of a lack of awareness of Greenland’s mineral/petroleum potential the resource extraction industry suffered a general decline in interest. This trend continued to the all time low in 2002.
The BMP designed a resource awareness marketing strategy focused on the two biggest mining countries in the world: Australia and Canada.
From 17 exclusive licenses in 2002 the number grew to more than 70 in 2010, and in April 2011 the number had grown to 94 including current applications.
In the same period the number of non-exclusive prospecting licenses went from six in 2002 to 20 in April 2011.
A list can be downloaded here showing all active licences and current applications.
From 2003 to 2010 the Government of Greenland issued four exploitation licenses for mining activities; Angel Mining is producing gold; Black Angel Mining has a mine under construction; QuadraFNX Minnig Ltd. is waiting for higher market prices and one mine is temporarily closed (Minelco). London Mining wants to see the Isua iron ore mine, which hugs Greenland’s ice sheet about 150 kms northeast of Nuuk, in operation by 2015.
Canada experienced a growth in expenditures (exploration expenses and activities) of 35 percent from CAD $1.911 billion in 2006 to CAD $2.624 billion in 2010. Greenland, in the same period, experienced an increase of almost 390 percent from DKK 135 million to a record DKK 524.5 million in 2010.
Australia experienced a growth between of 116 percent from AUD 1.028 billion in 2004 to AUD 2.223 billion in 2009.
Australian and Canadian listed company’s represent more than 55 percent of the resource sector companies currently working in Greenland.
Conclusion
Greenland is politically stable, maintains a long lived democracy and tax system, is open to foreign investment, and is mining friendly being eager to attain political independence from Denmark.
But how will Greenland pay for the responsibilities it may eventually take over from the Danish state? The main challenge to securing greater self-government is overcoming the reliance on the annual grant Greenland receives from Denmark and replacing it with revenues generated from within the country. Mineral mining and oil and gas production would ease this dependence. Fortunately Greenland is highly prospective for minerals and is hugely underexplored - the country is a new, and one of the last, frontiers for mineral and petroleum exploration.
"…climate change has already opened new areas for the exploitation of mineral resources as the ice cap is retreating. And in combination with the political and economical control of our mineral resources it will open new opportunities for Greenland to gain more economical and political independence from Denmark.” Josef Motzfeldt, MP in Greenland’s Home Rule government
Aheadoftheherd.com will be featuring two companies working in Greenland in future articles. The first has a 100% interest in 1,300 sq km being highly prospective for rare earths, diamonds, specialty and base metals. Our second featured company has acquired an exclusive exploration license for 4,841 sq km covering numerous outcrops of nickel-copper sulphide and other metals.
Greenland should be on every resource investors radar screen. Is it on yours?
If not, maybe it should be.
Tuesday, 24 January 2012
DGR Global’s wider resource interests continue to flourish with news of high grade gold at Nabanga
DGR Global (ASX: DGR) has reported the continued development of its wider resource interests with the release of high grade gold assays by Mt Isa Metals (ASX: MET) from the Nabanga Gold Prospect in Burkina Faso.
The company currently holds 52 million shares (33%) in Mt Isa Metals, which has confirmed high grade gold mineralisation at the North Zone over a 600 metre strike length and to a minimum 100 metre vertical depth.
Notable intersections from reverse circulation drilling include:
- 5 metres at 6.81 grams per tonne (g/t) gold from 21 metres, including 2 metres at 11.25g/t from 23 metres;
- 12 metres at 4.78g/t from 16 metres, including 3 metres at 16.02g/t from 24 metres; and
- 4 metres at 16.06g/t from 21 metres, including 3 metres at 21.23g/t.
The new North Zone intersections together with those recently reported from the Central Zone target confirm high grade gold mineralisation at Nabanga over a total 1.1 kilometre strike length.
The North Zone mineralisation remains open at depth below deepest drilling to date which includes 3 metres at 20.12g/t gold from 110 metres – 100 metre vertical depth, and 4 metres at 3.96g/t from 131 metres – 120 metre vertical depth.
To date assays have been received for 47 reverse circulation drill holes from within the North Zone target area. The average down hole drill intersection for all holes is 4 metres at 4.98g/t gold.
Additional reverse circulation drilling is currently in progress across the North Zone, Central Zone and South Zone areas.
These latest results follow on from a suite of positive drilling results released by Mt Isa Metals earlier in the month for the same project, which has now been separated into distinct “zones” given its overall size.
Exploration and further drilling is ongoing at Nabanga as Mt Isa Metals works towards a maiden gold Resource anticipated for release in the June quarter.
DGR’s Interests
DGR Global also holds 35.2 million shares (12.4%) in Solomon Gold (LSE: SOLG), 59.8 million shares (41%) in AusNiCo (ASX: ANW) and 27 million shares (29%) in Navaho Gold (ASX: NVG).
Navaho Gold is currently undertaking drilling activities in Nevada, U.S. to identify gold and silver mineralisation while Solomon Gold is continuing development of an expanding gold and silver Resource at Rannes in Queensland.
DGR is currently progressing the corporate development of Archer Resources, focusing on copper-gold‐silver porphyry systems, and IronRidge Resources.
IronRidge is undertaking project research and identification for iron ore in west Africa.
Capital raisings and stock exchange listings for these companies are in planning for 2012.
DGR is also continuing to progress the development of Armour Energy which is dedicated to the discovery and development of world class gas resources in an extensive new province in Northern Australia.
The area currently under tenure/application covers in excess of 125,000 square kilometres of the McArthur, South Nicholson and Georgina Basins.
Planning is well advanced for an IPO during the current March quarter.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24514/dgr-globals-wider-resource-interests-continue-to-flourish-with-news-of-high-grade-gold-at-nabanga-24514.html
The company currently holds 52 million shares (33%) in Mt Isa Metals, which has confirmed high grade gold mineralisation at the North Zone over a 600 metre strike length and to a minimum 100 metre vertical depth.
Notable intersections from reverse circulation drilling include:
- 5 metres at 6.81 grams per tonne (g/t) gold from 21 metres, including 2 metres at 11.25g/t from 23 metres;
- 12 metres at 4.78g/t from 16 metres, including 3 metres at 16.02g/t from 24 metres; and
- 4 metres at 16.06g/t from 21 metres, including 3 metres at 21.23g/t.
The new North Zone intersections together with those recently reported from the Central Zone target confirm high grade gold mineralisation at Nabanga over a total 1.1 kilometre strike length.
The North Zone mineralisation remains open at depth below deepest drilling to date which includes 3 metres at 20.12g/t gold from 110 metres – 100 metre vertical depth, and 4 metres at 3.96g/t from 131 metres – 120 metre vertical depth.
To date assays have been received for 47 reverse circulation drill holes from within the North Zone target area. The average down hole drill intersection for all holes is 4 metres at 4.98g/t gold.
Additional reverse circulation drilling is currently in progress across the North Zone, Central Zone and South Zone areas.
These latest results follow on from a suite of positive drilling results released by Mt Isa Metals earlier in the month for the same project, which has now been separated into distinct “zones” given its overall size.
Exploration and further drilling is ongoing at Nabanga as Mt Isa Metals works towards a maiden gold Resource anticipated for release in the June quarter.
DGR’s Interests
DGR Global also holds 35.2 million shares (12.4%) in Solomon Gold (LSE: SOLG), 59.8 million shares (41%) in AusNiCo (ASX: ANW) and 27 million shares (29%) in Navaho Gold (ASX: NVG).
Navaho Gold is currently undertaking drilling activities in Nevada, U.S. to identify gold and silver mineralisation while Solomon Gold is continuing development of an expanding gold and silver Resource at Rannes in Queensland.
DGR is currently progressing the corporate development of Archer Resources, focusing on copper-gold‐silver porphyry systems, and IronRidge Resources.
IronRidge is undertaking project research and identification for iron ore in west Africa.
Capital raisings and stock exchange listings for these companies are in planning for 2012.
DGR is also continuing to progress the development of Armour Energy which is dedicated to the discovery and development of world class gas resources in an extensive new province in Northern Australia.
The area currently under tenure/application covers in excess of 125,000 square kilometres of the McArthur, South Nicholson and Georgina Basins.
Planning is well advanced for an IPO during the current March quarter.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24514/dgr-globals-wider-resource-interests-continue-to-flourish-with-news-of-high-grade-gold-at-nabanga-24514.html
Kasbah Resources receives buy recommendation and $0.41 price target
Kasbah Resources (ASX: KAS) has received a buy recommendation from Ord Minnet with a 12 month target of $0.41, which is around double the last traded price of the company.
The following is an extract from the Ord Minnet report.
Kasbah Resources has announced a number of assay results from drilling of the Gap zone at the Achmmach Tin Project in Morocco. Two sets of results have been released in consecutive weeks and with 5 operating drill rigs on site we expect drill results to be announced regularly up to a resource increase in March.
Three holes AD108, AD116 and AD117 have extended mineralisation further into the Gap zone. These holes are 80m along strike from the outstanding results released last week (11 January 2012) and 240m along strike from the existing JORC resource of 7Mt @ 0.8% tin.
Results include 26m @ 0.96% tin from 249m, (including 10m @ 1.63% tin from 249m) in hole AD108, and AD116 with 31m @ 0.63% tin from 259m, (including 7m @ 1.60% tin from 276m).
The results are quickly on the back of outstanding holes AD115 and AD112 (released last week) with respective intersections of 38m @ 1.63% tin and 43m @ 2.01% tin. These intersections are the best results to date from the Achmmach tin project.
The mineralisation is showing good continuity through the last two reported sections and is accompanied by above average tin grades in both sections.
Summary
In summary the results announced over the past week have significantly enhanced the likelihood of a sizeable resource increase which is due in March.
Furthermore the tin mineralisation intersected is becoming more prevalent, such as hole AD117 where tin assays were reported over various intersections, spanning 180 metres down hole. Importantly the tin tenor of multiple intersections is well above the current resource grade of 0.8% tin.
We remain very positive on the outlook for tin in general and Kasbah in particular. OML’s base case valuation of Kasbah has been revised to $0.30 per share (previously $0.43) with an upside valuation of $0.53 per share (previously $0.59).
The valuation changes incorporate changes to our project capital estimates as well as changes to forecast equity capital requirements and associated project finance.
Buy recommendation maintained
We maintain our Buy recommendation for Kasbah with a revised 12-month price target of $0.41 per share (previously $0.50).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24513/kasbah-resources-receives-buy-recommendation-and-041-price-target-24513.html
The following is an extract from the Ord Minnet report.
Kasbah Resources has announced a number of assay results from drilling of the Gap zone at the Achmmach Tin Project in Morocco. Two sets of results have been released in consecutive weeks and with 5 operating drill rigs on site we expect drill results to be announced regularly up to a resource increase in March.
Three holes AD108, AD116 and AD117 have extended mineralisation further into the Gap zone. These holes are 80m along strike from the outstanding results released last week (11 January 2012) and 240m along strike from the existing JORC resource of 7Mt @ 0.8% tin.
Results include 26m @ 0.96% tin from 249m, (including 10m @ 1.63% tin from 249m) in hole AD108, and AD116 with 31m @ 0.63% tin from 259m, (including 7m @ 1.60% tin from 276m).
The results are quickly on the back of outstanding holes AD115 and AD112 (released last week) with respective intersections of 38m @ 1.63% tin and 43m @ 2.01% tin. These intersections are the best results to date from the Achmmach tin project.
The mineralisation is showing good continuity through the last two reported sections and is accompanied by above average tin grades in both sections.
Summary
In summary the results announced over the past week have significantly enhanced the likelihood of a sizeable resource increase which is due in March.
Furthermore the tin mineralisation intersected is becoming more prevalent, such as hole AD117 where tin assays were reported over various intersections, spanning 180 metres down hole. Importantly the tin tenor of multiple intersections is well above the current resource grade of 0.8% tin.
We remain very positive on the outlook for tin in general and Kasbah in particular. OML’s base case valuation of Kasbah has been revised to $0.30 per share (previously $0.43) with an upside valuation of $0.53 per share (previously $0.59).
The valuation changes incorporate changes to our project capital estimates as well as changes to forecast equity capital requirements and associated project finance.
Buy recommendation maintained
We maintain our Buy recommendation for Kasbah with a revised 12-month price target of $0.41 per share (previously $0.50).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24513/kasbah-resources-receives-buy-recommendation-and-041-price-target-24513.html
Auzex Resources acquires additional land position near 2.6 million gold ounce Bullabulling
Auzex Resources (ASX: AZX) and joint venture partner GGG Resources (ASX: GGB, LON: GGG) have made a strategic acquisition of the Geko Gold Project, after executing an option to acquire 100%, costing around $3 million.
The significance of Geko is the strategic location, just 17 kilometres from Auzex and GGG Resources 2.6 million gold ounce Bullabulling project, which in turn is 70 kilometres southwest of Kalgoorlie in Western Australia.
Geko has historically had some exploration undertaken in the 1990’s by Newcrest and others, where importantly gold mineralisation was intersected that can be correlated with the same sequence of lithologies which host the Bullabulling gold deposit.
Highlighting the potential of the new land holding, the joint venture said that it considers the transaction to offer significant exploration potential for gold that may be complimentary to a future mining operation currently under Pre-Feasibility at Bullabulling.
Adding some spice to Geko is the possibility of any future gold ore that is mined, could easily be transported to Bullabulling for processing - providing the joint venture with economies of scale in the area.
Terms of the $3.0 million option acquisition
- $0.5 million cash payable by BBG if the merger of AZX and GGG has been completed or in equal proportions by GGG and AZX if the merger has not been completed; and
- If the merger has been completed, the newly formed merged entity, Bullabulling Gold may, at its election – pay the seller the remaining $2.5 million in cash or BBG scrip based on a 5 day VWAP immediately prior to the purchase; or
- If the merger has not been completed, each of AZX and GGG must, at its election either; $1.25 million in cash to the seller; or issue shares to the seller to the value of $1.25 million based on a 5 day VWAP immediately prior to the purchase; and
- Production royalty of $10 per ounce for all gold sold from the tenement if the option is exercised.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24512/auzex-resources-acquires-additional-land-position-near-26-million-gold-ounce-bullabulling-24512.html
The significance of Geko is the strategic location, just 17 kilometres from Auzex and GGG Resources 2.6 million gold ounce Bullabulling project, which in turn is 70 kilometres southwest of Kalgoorlie in Western Australia.
Geko has historically had some exploration undertaken in the 1990’s by Newcrest and others, where importantly gold mineralisation was intersected that can be correlated with the same sequence of lithologies which host the Bullabulling gold deposit.
Highlighting the potential of the new land holding, the joint venture said that it considers the transaction to offer significant exploration potential for gold that may be complimentary to a future mining operation currently under Pre-Feasibility at Bullabulling.
Adding some spice to Geko is the possibility of any future gold ore that is mined, could easily be transported to Bullabulling for processing - providing the joint venture with economies of scale in the area.
Terms of the $3.0 million option acquisition
- $0.5 million cash payable by BBG if the merger of AZX and GGG has been completed or in equal proportions by GGG and AZX if the merger has not been completed; and
- If the merger has been completed, the newly formed merged entity, Bullabulling Gold may, at its election – pay the seller the remaining $2.5 million in cash or BBG scrip based on a 5 day VWAP immediately prior to the purchase; or
- If the merger has not been completed, each of AZX and GGG must, at its election either; $1.25 million in cash to the seller; or issue shares to the seller to the value of $1.25 million based on a 5 day VWAP immediately prior to the purchase; and
- Production royalty of $10 per ounce for all gold sold from the tenement if the option is exercised.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24512/auzex-resources-acquires-additional-land-position-near-26-million-gold-ounce-bullabulling-24512.html
Manas Resources completes DFS for Shambesai Gold Project, Snowden Group reviewing
Manas Resources (ASX: MSR) is starting to tick off the milestones at the Shambesai Gold Project in the Kyrgyz Republic, Central Asia, with a Definitive Feasibility Study having now been completed.
The study is in the process of being reviewed by Snowden Group in preparation for board approval, and is examining the stage one gold‐leach project at Shambesai, with the final documentation to provide the basis for the project detailed design, which in turn is a key element in the mining licence and permitting approvals process.
Importantly the detailed design for the project has commenced with the appointment of China based Yantai Design Institute to complete the process plant design and equipment selection.
Another plus for operations within the county is that with the new Kyrgyz Republic government appointed, mining reform has commenced with the stated objective of accelerating the growth of the mining industry in 2012 and beyond, which is a major benefit for Manas.
Negotiations are also underway for the design of the mine and infrastructure sections of the project, with discussions having started for the supply of the camp, crushing and adsorption/elution/gold room sections of the mine development.
Pit optimisation review provides boost
Towards the end of 2011, Manas received a major boost to the economics of the Shambesai with a pit optimisation review upgrading the project's financials.
The study demonstrates the potential for net cash flows of up to US$190 million by producing 40,000 gold ounces for an initial five years - with the metrics based on a conservative US$1500 per ounce gold price.
Manas gold oxide resource
Adding to the potential of Shambesai, 2011 also delivered a boost in the gold oxide resource.
The significance of the 40% boost to 460,000 ounces (Indicated and Inferred) of the oxide is the ease of gold extraction at a low cost, which will provide early cash flows for Manas when the company starts gold production - which is forecast to start at the end of 2012.
The high grade oxide component from the surface is 2.7 million tonnes at 3.6 grams per tonne (g/t) gold for 300,000 ounces.
The latest gold boost is not just for the oxide, with the Shambesai resource upgraded to 11.6 million tonnes at 2.1g/t for 766,000 ounces, with 60% classified as oxides.
Another major plus for Manas is when the Shambesai resource is combined with the nearby Obdilla resource, the company then has a global Indicated and Inferred Resource of 1.25 million ounces within a 4 kilometre radius.
Gold recoveries of plus 85%
Vat leach and heap leach test-work at an independent laboratory in the Kyrgyz Republic under the supervision of Manas has demonstrated significantly improved gold processing parameters, including higher gold recoveries, quicker leach times and lower cyanide consumption.
A bulk sample of high-grade ore greater than 8.0g/t gold was taken from zones which will be mined first at Shambesai, and was then tested in columns under conditions designed to replicate the Vat Leach process for extracting gold from the Shambesai oxide ore.
The results indicate recoveries of more than 85% can be achieved in rapid leach cycles of less than 36 hours, with very low cyanide consumption of 0.2 to 0.3 kg/t for minus 12mm crushed and agglomerated ore in vats at high solution circulation rates.
The outcome is that the test work results confirm the suitability of the process route selected for the project, providing a very low capital and operating cost ore treatment route.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24503/manas-resources-completes-dfs-for-shambesai-gold-project-snowden-group-reviewing-24503.html
The study is in the process of being reviewed by Snowden Group in preparation for board approval, and is examining the stage one gold‐leach project at Shambesai, with the final documentation to provide the basis for the project detailed design, which in turn is a key element in the mining licence and permitting approvals process.
Importantly the detailed design for the project has commenced with the appointment of China based Yantai Design Institute to complete the process plant design and equipment selection.
Another plus for operations within the county is that with the new Kyrgyz Republic government appointed, mining reform has commenced with the stated objective of accelerating the growth of the mining industry in 2012 and beyond, which is a major benefit for Manas.
Negotiations are also underway for the design of the mine and infrastructure sections of the project, with discussions having started for the supply of the camp, crushing and adsorption/elution/gold room sections of the mine development.
Pit optimisation review provides boost
Towards the end of 2011, Manas received a major boost to the economics of the Shambesai with a pit optimisation review upgrading the project's financials.
The study demonstrates the potential for net cash flows of up to US$190 million by producing 40,000 gold ounces for an initial five years - with the metrics based on a conservative US$1500 per ounce gold price.
Manas gold oxide resource
Adding to the potential of Shambesai, 2011 also delivered a boost in the gold oxide resource.
The significance of the 40% boost to 460,000 ounces (Indicated and Inferred) of the oxide is the ease of gold extraction at a low cost, which will provide early cash flows for Manas when the company starts gold production - which is forecast to start at the end of 2012.
The high grade oxide component from the surface is 2.7 million tonnes at 3.6 grams per tonne (g/t) gold for 300,000 ounces.
The latest gold boost is not just for the oxide, with the Shambesai resource upgraded to 11.6 million tonnes at 2.1g/t for 766,000 ounces, with 60% classified as oxides.
Another major plus for Manas is when the Shambesai resource is combined with the nearby Obdilla resource, the company then has a global Indicated and Inferred Resource of 1.25 million ounces within a 4 kilometre radius.
Gold recoveries of plus 85%
Vat leach and heap leach test-work at an independent laboratory in the Kyrgyz Republic under the supervision of Manas has demonstrated significantly improved gold processing parameters, including higher gold recoveries, quicker leach times and lower cyanide consumption.
A bulk sample of high-grade ore greater than 8.0g/t gold was taken from zones which will be mined first at Shambesai, and was then tested in columns under conditions designed to replicate the Vat Leach process for extracting gold from the Shambesai oxide ore.
The results indicate recoveries of more than 85% can be achieved in rapid leach cycles of less than 36 hours, with very low cyanide consumption of 0.2 to 0.3 kg/t for minus 12mm crushed and agglomerated ore in vats at high solution circulation rates.
The outcome is that the test work results confirm the suitability of the process route selected for the project, providing a very low capital and operating cost ore treatment route.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24503/manas-resources-completes-dfs-for-shambesai-gold-project-snowden-group-reviewing-24503.html
Rox Resources intersects high grade phosphate at Marqua
Rox Resources (ASX: RXL) just keeps the good news flowing with high grade phosphate intersections including 3 metres at 29.8% phosphate from 45 metres at its Marqua project, 300 kilometres southwest of Mount Isa in the Northern Territory.
Other highlights from the 29 hole, 1,900 metre reverse circulation drilling program include 4 metres at 28.6% phosphate from 13 metres, 3 metres at 22.6% from 25 metres and 1 metre at 21.8% from 15 metres.
Managing director Ian Mulholland said the potential exists for a substantial phosphate Resource to be defined at Marqua with further drilling, especially down dip to the north from known areas of high grade phosphate mineralisation.
“Currently a phosphate bearing horizon extending over 30 kilometres in strike length and dipping to the north has been drill tested at nominally 1 kilometre spacing, with closer spaced drilling in areas of outcrop, or higher grades,” he said.
“This extensive mineralised system has not been tested at depth, with the deepest drill only reaching 100 metres in depth, and most testing to only 50 metres.”
Three of the drill holes confirm the previous high grades intersected at the Coquina Creek prospect.
Grades above 30% phosphate were recovered from within two holes with intersections including 1 metre at 33.6% from 14 metres and 2 metres at 34.2% from 46 metres.
This zone of mineralisation occurs over a strike length of about 2 kilometres and appears to dip to the north.
The prospect has only been drilled at wide spacing (200 metre sections) and down dip to a maximum depth of about 50 metres.
The 2 kilometre strike length indicates that a substantial deposit could exist, but confirmation of this will require further drilling.
A new high grade zone at the Mauritania prospect has also been discovered with one hole intersecting 4 metres at 15.7% phosphate from 14 metres, including 1 metre at 21.8% from 15 metres.
One drill hole at the Library Ridge prospect also confirmed the continuation of mineralisation in that location.
Other known high grade mineralised areas also occur at Foss Hill, Red Heart and White Hill. Drilling was undertaken to test the extent of these mineralised zones over wider areas and was successful.
Marqua Potential
The Marqua phosphate project is located in the Georgina Basin which contains 90% of Australia’s hard rock phosphate resources.
A 25 kilometre long strike length of phosphate bearing rocks has been identified by surface sampling, which showed up to 39.4% phosphorous oxide, and drilling, which returned intersections of 6 metres at 19.9% phosphorous oxide and 5 metres at 23.7%.
Importantly, there is the potential to establish a large resource in a new phosphate area. Marqua has an exploration target of 50 to 100 million tonnes at 15 to 20% phosphorous oxide.
The only operating mine near to the region at present is at Phosphate Hill in Queensland, which is producing 2 million tonnes per annum.
Other developing phosphate projects in the basin are the 461 million tonne at 18.8% Wonarah and 305 million tonne at 15% D-Tree (Lady Annie).
Marqua, which covers about 2,600 square kilometres, is strategically located only 250 kilometres from the nearest railhead and gas pipeline at Phosphate Hill.
Improved Assays at Mt Fisher
The news of the high grade intersections follows close on the heels of a 9% improvement in gold assay values on selected samples from the Moray Reef gold deposit at the Mt Fisher project in Western Australia.
The improved assays were the result of using a cyanide bottle roll leach method (Leachwell), compared to traditional fire assays, on selected samples from Moray Reef.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24511/rox-resources-intersects-high-grade-phosphate-at-marqua--24511.html
Other highlights from the 29 hole, 1,900 metre reverse circulation drilling program include 4 metres at 28.6% phosphate from 13 metres, 3 metres at 22.6% from 25 metres and 1 metre at 21.8% from 15 metres.
Managing director Ian Mulholland said the potential exists for a substantial phosphate Resource to be defined at Marqua with further drilling, especially down dip to the north from known areas of high grade phosphate mineralisation.
“Currently a phosphate bearing horizon extending over 30 kilometres in strike length and dipping to the north has been drill tested at nominally 1 kilometre spacing, with closer spaced drilling in areas of outcrop, or higher grades,” he said.
“This extensive mineralised system has not been tested at depth, with the deepest drill only reaching 100 metres in depth, and most testing to only 50 metres.”
Three of the drill holes confirm the previous high grades intersected at the Coquina Creek prospect.
Grades above 30% phosphate were recovered from within two holes with intersections including 1 metre at 33.6% from 14 metres and 2 metres at 34.2% from 46 metres.
This zone of mineralisation occurs over a strike length of about 2 kilometres and appears to dip to the north.
The prospect has only been drilled at wide spacing (200 metre sections) and down dip to a maximum depth of about 50 metres.
The 2 kilometre strike length indicates that a substantial deposit could exist, but confirmation of this will require further drilling.
A new high grade zone at the Mauritania prospect has also been discovered with one hole intersecting 4 metres at 15.7% phosphate from 14 metres, including 1 metre at 21.8% from 15 metres.
One drill hole at the Library Ridge prospect also confirmed the continuation of mineralisation in that location.
Other known high grade mineralised areas also occur at Foss Hill, Red Heart and White Hill. Drilling was undertaken to test the extent of these mineralised zones over wider areas and was successful.
Marqua Potential
The Marqua phosphate project is located in the Georgina Basin which contains 90% of Australia’s hard rock phosphate resources.
A 25 kilometre long strike length of phosphate bearing rocks has been identified by surface sampling, which showed up to 39.4% phosphorous oxide, and drilling, which returned intersections of 6 metres at 19.9% phosphorous oxide and 5 metres at 23.7%.
Importantly, there is the potential to establish a large resource in a new phosphate area. Marqua has an exploration target of 50 to 100 million tonnes at 15 to 20% phosphorous oxide.
The only operating mine near to the region at present is at Phosphate Hill in Queensland, which is producing 2 million tonnes per annum.
Other developing phosphate projects in the basin are the 461 million tonne at 18.8% Wonarah and 305 million tonne at 15% D-Tree (Lady Annie).
Marqua, which covers about 2,600 square kilometres, is strategically located only 250 kilometres from the nearest railhead and gas pipeline at Phosphate Hill.
Improved Assays at Mt Fisher
The news of the high grade intersections follows close on the heels of a 9% improvement in gold assay values on selected samples from the Moray Reef gold deposit at the Mt Fisher project in Western Australia.
The improved assays were the result of using a cyanide bottle roll leach method (Leachwell), compared to traditional fire assays, on selected samples from Moray Reef.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24511/rox-resources-intersects-high-grade-phosphate-at-marqua--24511.html
Middle Island Resources sets sights on minimum 1 million ounce gold resources in West Africa in 2012
Middle Island Resources (ASX: MDI) is an Australian based gold explorer that is holds or is earning a majority interest in a number of highly prospective gold projects in West Africa.
The Company has a highly skilled management team that has developed a business plan focused on defining at least one gold resource hosting a minimum 1.1 million ounces of gold within two years of listing on the ASX.
This objective is now being drill tested at Morley, K4/K5 and Samba targets at the Reo Project, at the Songonduari target at the Nassile Project and at the Big Hill target at the Nuon River Project, any or more of which could achieve the objective sought in the original undertaking made to shareholders.
The Company is now in the midst of a number of aggressive drilling programs that will be completed over the course of the current calendar year.
Share Price: $0.36
Issued Shares: 99.9 m
Unlisted Options: 16.2 m
Market Cap: $35.96m
Cash: $8.0m
EV: $27.96m
ANALYSIS
Promisingly, Newmont Mining Corporation (NYSE:NEM) has a 10% stake in Middle Island Resources, also providing a project generation opportunity for the company.
Institutions hold 18% of the company, the support from this sector of the market is telling and a strong sign of the upside valuation potential viewed in the company.
The company is currently developing four significant gold projects in Burkina Faso, Niger and Liberia.
Middle Island has a minimum exploration target of 1.1 million ounces of gold in resources by December 2012.
The company’s tenements are in underexplored areas prospective for gold, close to known deposits, many with extensive artisanal workings.
With a strong management, Rick Yeates’ team has vast experience in the West African region.
The most advanced project is known as Reo and was vended from Newmont Mining for a major stake in the Company, and attests to the quality of management and project potential.
Reo has advanced targets at Morley, K4/K5 and Samba any of which appear to hold the potential to meet the Company objective of defining a minimum 1.1 million ounce resource.
The Company is well advanced on defining two gold resources at Reo that may each develop into 1.1 million ounce resources, and has clearly stated that it views Barteh Jam/Big Hill at the Nuon River Project in Liberia as the most promising gold prospect in its portfolio.
This may provide investors with a “triple play”, and not the single play first thought.
At the one million ounce resource base, could ultimately translate and evolve Middle Island into a 80,000 to 100,000 ounce a year producer, which is a strong start to critical mass required in West Africa.
Middle Island has contracted to deploy 6 drilling rigs on five targets at 3 projects by mid month, and aggressively define a number of new gold resource opportunities. The market can expect to see a constant flow of drilling news that will continue throughout the year.
Together, the company ticks many boxes and looks capable of being re-rated significantly in market valuation and share price in 2012 as exploration activity ramps up and as it increases the size of the global resource base.
MANAGEMENT
Peter Thomas serves as Non-Executive Chairman and is a retired solicitor who has provided corporate and commercial advice to the mining industry since 1980. He was the Founding Chairman of Sandfire Resources NL and is currently the Chairman for five ASX listed companies.
Rick Yates serves as Managing Director and is a senior geologist with 30 years experience with BHP Billiton, Newmont and Amax. He co-founded RSG, which became RSG Global and Coffey Mining and he has 21 years experience in West Africa. He is also a Non-executive Director of ASX200 nickel producer, Western Areas NL.
Beau Nicholls is Technical Director and is a professional geologist who has a proven track record of discovery and development that was established over 16 years. This included 10 years with RSG Global and Coffey Mining where he worked as regional manager for 3 years and covered all West African jurisdictions.
Linton Kirk is a Non-executive Director and a professional mining engineer with 30 years international experience in mining, earthmoving, contracting, management and consulting. He has extensive West African gold experience at Iduapriem in Ghana, partner at RSG Global, and Chief Mining Engineer at Coffey Mining.
Andrew Chubb is Exploration Manager resident in West Africa and a professional geologist with 11 years international experience including Mali, Tanzania, the Democratic Republic of the Congo and Tunisia.
The Company is also developing the Nassilé and Dogona projects in Niger, and has outlined a 7 kilometre long mineralised strike line at Nassilé that is the subject of a current RC drilling campaign.
Management has stated that the Nuon River Project in Liberia includes some of the most prospective gold ground in the whole of West Africa, and is being fast tracked with surface sampling, mapping, airborne geophysics and an initial drilling program to fully evaluate its potential.
BURKINA FASO - REO PROJECT
The Reo Project covers 1,166 square kilometres and includes 7 permits plus some additional on-going tenure consolidation. Reo is located 150 kilometres west of Ouagadougou in Burkina Faso, in an area with excellent access and infrastructure.
Newmont sold MDI the Reo Project in Burkina Faso and is now a 10% shareholder.
Reo was originally selected by Newmont following a cratonic study that identified a structurally complex junction of the Boromo and Houndé greenstone belts. This structure is located within 100 kilometres of Poura with 1.5 million ounces of gold, Mana with 3 million ounces, and nearby the new high grade Perkoa Zinc Mine.
Middle Island Resources has inherited 6 gold prospects associated with structures that are found around the margins of the Didyr granite. The highest priority has been assigned to the Morley and K4/K5 prospects which were identified from soil sampling and airborne magnetics.
Morley encompasses a soil anomaly that carries elevated gold values of up to 500 parts per billion over a 3,250 by 800 metre strike zone, and contains a series of 6-12 metre wide stacked lodes that trend from east to west, and dip to the north.
An extensive trenching and drilling program at Morley included highlights at KDTR01 with 10.6 metres at 17.4 g/t Au at surface, KRAC128 with 34 metres at 16.4 g/t Au commencing at 2 metres, KRC022 with 10 metres at 7.55 g/t Au at 16 metres, MRTR001 with 11 metres at 7.97 g/t Au at surface, and MRRC005 with 10 metres at 9.63 g/t Au at 74 metres.
K4/K5 encompasses an artisanal field that was recently worked by 10,000 miners who were evicted in mid 2011. The field is covered by transposed laterite and comprises the largest and highest tenor soil anomaly within the Reo Project area. The geometry of the prospect is unresolved, but appears to contain stacked, broadly east-west trending zones that host sheeted to massive quartz-carbonate veining in sericite altered meta-sediments.
Early drilling highlights include 18 metres at 2.51 g/t Au from a depth of 12 metres, and 13 metres at 2.33 g/t Au from a depth of 59 metres with both holes ending in mineralization. A shallow rotary air blast (RAB) drilling program of 4,000 metres at K4/K5 reported highlights of 4 metres at 16.2 g/t Au from 4 metres, 4 metres at 14.0 g/t Au from 28 metres, and 12 metres at 4.11 g/t Au from 4 metres.
The Company has completed 2,932 holes for 22,598 metres of a 40,000 metre shallow geochemical auger drilling deploying 3 rigs that are covering all prospective corridors at Reo in order to define new targets. An additional 18,000 metres of shallow drilling has been approved and will refine targets for cost effective RAB or Aircore drilling.
Morley and K4/K5 have now been confirmed as significant targets that both have the potential to reach the minimum resource objective of 1.1 million ounces of gold. A follow up RAB drilling program of 10,000 metres commenced at both prospects in November of last year.
NIGER PROJECTS - NASSILE AND DOGONA
Nassile Prospect
Two projects are held that straddle the Niger side of the Burkina Faso border at Nassilé and Dogona that collectively cover 1,400 square kilometres of poorly explored Birimian greenstones. Both prospects are close to the city of Niamey, and the Samira Hill gold mine with 2 million ounces of gold resources which present opportunities for toll treatment of ore.
The Company is earning an initial 70% interest at Nassilé for staged expenditure of US$2 million over 3 years. Ashanti Goldfields and Island Arc/Cassidy completed historic work at Nassilé that included RAB and RC drilling at Koutougou and Songonduari prospects.
Highlights included NRB202 with 12 metres at 2.09 g/t Au, NRC011 with 12 metres at 3.08 g/t Au at 51 metres, NRC013 with 6 metres at 1.98 g/t Au at 23 metres and 15 metres at 2.24 g/t Au at 72 metres. A 25,000 metre geochemical auger drilling program has since identified a 7 kilometre long high tenor extension at Songonduari.
The Company has recently commenced a 7,500 metre RC drilling program at Songonduari to test the gold trend.
Dogona covers 822.7 square kilometres and was the site of a new gold rush that commenced at the beginning of 2011 with 7,000 artisanal miners working on numerous untested artisanal mining sites and contains potential for significant greenfields discoveries.
The Company will earn an initial 90% interest with a staged $1 million exploration program over 2 years.
LIBERIA – NUON RIVER PROJECT
Middle Island Resources is earning a 100% interest in five permits and an initial 75% interest in a sixth permit that aggregate into a semi-contiguous area of 3,005 square kilometres, collectively known as the Nuon River Project, and adjoins the northern Liberian border.
Nuon River is situated at the boundary between the Archaean and Birimian components of the West African Craton, and is located immediately along strike from the Ity Gold Project which has a gold endowment of some 5 million ounces.
These permits have never been evaluated by modern exploration techniques and contain significant alluvial and saprolite artisanal gold mining activity at mining camps at Barteh Jam, Nico, Middle East, and Mambo, respectively located in the Grand Gedeh, Cestos North, Zwedru North and Cestos South permits. A number of other camps are known to exist within the permit areas but have not yet been visited.
Soil sampling has been completed over Nico and Barteh Jam, and stream sediment sampling and airborne geophysical surveys have commenced over the whole Nuon River Project area.
Barteh Jam was discovered in 1946, and is the second largest artisanal gold camp in Liberia and contains the Big Hill saprolite prospect that has been defined over a strike length of 3,500 metres and width of 80 metres.
Big Hill is an open ended target that hosts numerous artisanal shafts along its entire length, and carries a series of stacked and sheeted quartz veins and breccia zones that trend from east to west, and dip at angle of approximately 25 degrees to the south.
Big Hill has good potential for low strip ratios, high tonnages per vertical metre, and hosts a deep zone of oxidised ore. This represents an excellent oxide open pit target and will be fully evaluated for continuity of gold grades along strike and at depth.
Big Hill carries abundant and visible free milling gold that is found within quartz veins, and where surface panning consistently produces 200 to 300 grains of gold along with quartz vein fragments containing coarse gold in each pan, and indicates potential for high values over a wide area.
An initial 5,000 metre RC drilling is expected to commence this month, and the rig may be retained on a longer term basis if initial results are positive. A diamond drilling rig is also available for deeper exploration and evaluation.
Management believes that Barteh Jam holds strong technical merit and may develop into the Company’s first significant gold resource.
Middle Island Resources has confirmed the presence of widespread visible gold at the Nuon River Project and is to fast track a drilling program to seek open pittable gold.
ANALYSIS
Promisingly, Newmont Mining Corporation (NYSE:NEM) has a 10% stake in Middle Island Resources, also providing project generation opportunities to the company. Institutions hold 18% of the company, the support from both is telling and a strong sign of the upside valuation potential in the company.
The company is currently developing four significant gold projects in Burkina Faso, Niger and Liberia.
Middle Island has a minimum exploration target of 1.1 million ounces of gold by December 2012.
The company’s tenements are in underexplored areas prospective for gold, close to known deposits, many with extensive artisanal workings.
With a strong management, Rick Yeates’ team has vast experience in the West African region.
The most advanced project is known as Reo and was vended from Newmont Mining for a major stake in the Company, and attests to the quality of management and project potential.
Reo has advanced targets at Morley and K4/K5, either of which holds the potential to meet the Company objective of defining a minimum 1.1 million ounce resource.
The Company is well advanced on defining two gold prospects at Reo that may develop into 1.1 million ounce resources, and has clearly stated that it views Barteh Jam/Big Hill as the most promising gold prospect in its portfolio.
This may provide investors with a “triple play”, and not the single play first thought.
At the one million ounce resource base, could ultimately translate and evolve Middle Island into a 80,000 to 100,000 ounce a year producer, which is a strong start to critical mass required in West Africa.
Middle Island has contracted to deploy 6 drilling rigs on 5 targets at 3 projects by mid month, and aggressively develop a number of new gold resources. The market can expect to see a constant flow of drilling news that will continue throughout the New Year.
Together, the company ticks many boxes and looks capable of being re-rated significantly in market valuation and share price in 2012 as exploration activity ramps up and as it increases the size of the global resource base.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24470/middle-island-resources-sets-sights-on-minimum-1-million-ounce-gold-resources-in-west-africa-in-2012-24470.html
The Company has a highly skilled management team that has developed a business plan focused on defining at least one gold resource hosting a minimum 1.1 million ounces of gold within two years of listing on the ASX.
This objective is now being drill tested at Morley, K4/K5 and Samba targets at the Reo Project, at the Songonduari target at the Nassile Project and at the Big Hill target at the Nuon River Project, any or more of which could achieve the objective sought in the original undertaking made to shareholders.
The Company is now in the midst of a number of aggressive drilling programs that will be completed over the course of the current calendar year.
Share Price: $0.36
Issued Shares: 99.9 m
Unlisted Options: 16.2 m
Market Cap: $35.96m
Cash: $8.0m
EV: $27.96m
ANALYSIS
Promisingly, Newmont Mining Corporation (NYSE:NEM) has a 10% stake in Middle Island Resources, also providing a project generation opportunity for the company.
Institutions hold 18% of the company, the support from this sector of the market is telling and a strong sign of the upside valuation potential viewed in the company.
The company is currently developing four significant gold projects in Burkina Faso, Niger and Liberia.
Middle Island has a minimum exploration target of 1.1 million ounces of gold in resources by December 2012.
The company’s tenements are in underexplored areas prospective for gold, close to known deposits, many with extensive artisanal workings.
With a strong management, Rick Yeates’ team has vast experience in the West African region.
The most advanced project is known as Reo and was vended from Newmont Mining for a major stake in the Company, and attests to the quality of management and project potential.
Reo has advanced targets at Morley, K4/K5 and Samba any of which appear to hold the potential to meet the Company objective of defining a minimum 1.1 million ounce resource.
The Company is well advanced on defining two gold resources at Reo that may each develop into 1.1 million ounce resources, and has clearly stated that it views Barteh Jam/Big Hill at the Nuon River Project in Liberia as the most promising gold prospect in its portfolio.
This may provide investors with a “triple play”, and not the single play first thought.
At the one million ounce resource base, could ultimately translate and evolve Middle Island into a 80,000 to 100,000 ounce a year producer, which is a strong start to critical mass required in West Africa.
Middle Island has contracted to deploy 6 drilling rigs on five targets at 3 projects by mid month, and aggressively define a number of new gold resource opportunities. The market can expect to see a constant flow of drilling news that will continue throughout the year.
Together, the company ticks many boxes and looks capable of being re-rated significantly in market valuation and share price in 2012 as exploration activity ramps up and as it increases the size of the global resource base.
MANAGEMENT
Peter Thomas serves as Non-Executive Chairman and is a retired solicitor who has provided corporate and commercial advice to the mining industry since 1980. He was the Founding Chairman of Sandfire Resources NL and is currently the Chairman for five ASX listed companies.
Rick Yates serves as Managing Director and is a senior geologist with 30 years experience with BHP Billiton, Newmont and Amax. He co-founded RSG, which became RSG Global and Coffey Mining and he has 21 years experience in West Africa. He is also a Non-executive Director of ASX200 nickel producer, Western Areas NL.
Beau Nicholls is Technical Director and is a professional geologist who has a proven track record of discovery and development that was established over 16 years. This included 10 years with RSG Global and Coffey Mining where he worked as regional manager for 3 years and covered all West African jurisdictions.
Linton Kirk is a Non-executive Director and a professional mining engineer with 30 years international experience in mining, earthmoving, contracting, management and consulting. He has extensive West African gold experience at Iduapriem in Ghana, partner at RSG Global, and Chief Mining Engineer at Coffey Mining.
Andrew Chubb is Exploration Manager resident in West Africa and a professional geologist with 11 years international experience including Mali, Tanzania, the Democratic Republic of the Congo and Tunisia.
The Company is also developing the Nassilé and Dogona projects in Niger, and has outlined a 7 kilometre long mineralised strike line at Nassilé that is the subject of a current RC drilling campaign.
Management has stated that the Nuon River Project in Liberia includes some of the most prospective gold ground in the whole of West Africa, and is being fast tracked with surface sampling, mapping, airborne geophysics and an initial drilling program to fully evaluate its potential.
BURKINA FASO - REO PROJECT
The Reo Project covers 1,166 square kilometres and includes 7 permits plus some additional on-going tenure consolidation. Reo is located 150 kilometres west of Ouagadougou in Burkina Faso, in an area with excellent access and infrastructure.
Newmont sold MDI the Reo Project in Burkina Faso and is now a 10% shareholder.
Reo was originally selected by Newmont following a cratonic study that identified a structurally complex junction of the Boromo and Houndé greenstone belts. This structure is located within 100 kilometres of Poura with 1.5 million ounces of gold, Mana with 3 million ounces, and nearby the new high grade Perkoa Zinc Mine.
Middle Island Resources has inherited 6 gold prospects associated with structures that are found around the margins of the Didyr granite. The highest priority has been assigned to the Morley and K4/K5 prospects which were identified from soil sampling and airborne magnetics.
Morley encompasses a soil anomaly that carries elevated gold values of up to 500 parts per billion over a 3,250 by 800 metre strike zone, and contains a series of 6-12 metre wide stacked lodes that trend from east to west, and dip to the north.
An extensive trenching and drilling program at Morley included highlights at KDTR01 with 10.6 metres at 17.4 g/t Au at surface, KRAC128 with 34 metres at 16.4 g/t Au commencing at 2 metres, KRC022 with 10 metres at 7.55 g/t Au at 16 metres, MRTR001 with 11 metres at 7.97 g/t Au at surface, and MRRC005 with 10 metres at 9.63 g/t Au at 74 metres.
K4/K5 encompasses an artisanal field that was recently worked by 10,000 miners who were evicted in mid 2011. The field is covered by transposed laterite and comprises the largest and highest tenor soil anomaly within the Reo Project area. The geometry of the prospect is unresolved, but appears to contain stacked, broadly east-west trending zones that host sheeted to massive quartz-carbonate veining in sericite altered meta-sediments.
Early drilling highlights include 18 metres at 2.51 g/t Au from a depth of 12 metres, and 13 metres at 2.33 g/t Au from a depth of 59 metres with both holes ending in mineralization. A shallow rotary air blast (RAB) drilling program of 4,000 metres at K4/K5 reported highlights of 4 metres at 16.2 g/t Au from 4 metres, 4 metres at 14.0 g/t Au from 28 metres, and 12 metres at 4.11 g/t Au from 4 metres.
The Company has completed 2,932 holes for 22,598 metres of a 40,000 metre shallow geochemical auger drilling deploying 3 rigs that are covering all prospective corridors at Reo in order to define new targets. An additional 18,000 metres of shallow drilling has been approved and will refine targets for cost effective RAB or Aircore drilling.
Morley and K4/K5 have now been confirmed as significant targets that both have the potential to reach the minimum resource objective of 1.1 million ounces of gold. A follow up RAB drilling program of 10,000 metres commenced at both prospects in November of last year.
NIGER PROJECTS - NASSILE AND DOGONA
Nassile Prospect
Two projects are held that straddle the Niger side of the Burkina Faso border at Nassilé and Dogona that collectively cover 1,400 square kilometres of poorly explored Birimian greenstones. Both prospects are close to the city of Niamey, and the Samira Hill gold mine with 2 million ounces of gold resources which present opportunities for toll treatment of ore.
The Company is earning an initial 70% interest at Nassilé for staged expenditure of US$2 million over 3 years. Ashanti Goldfields and Island Arc/Cassidy completed historic work at Nassilé that included RAB and RC drilling at Koutougou and Songonduari prospects.
Highlights included NRB202 with 12 metres at 2.09 g/t Au, NRC011 with 12 metres at 3.08 g/t Au at 51 metres, NRC013 with 6 metres at 1.98 g/t Au at 23 metres and 15 metres at 2.24 g/t Au at 72 metres. A 25,000 metre geochemical auger drilling program has since identified a 7 kilometre long high tenor extension at Songonduari.
The Company has recently commenced a 7,500 metre RC drilling program at Songonduari to test the gold trend.
Dogona covers 822.7 square kilometres and was the site of a new gold rush that commenced at the beginning of 2011 with 7,000 artisanal miners working on numerous untested artisanal mining sites and contains potential for significant greenfields discoveries.
The Company will earn an initial 90% interest with a staged $1 million exploration program over 2 years.
LIBERIA – NUON RIVER PROJECT
Middle Island Resources is earning a 100% interest in five permits and an initial 75% interest in a sixth permit that aggregate into a semi-contiguous area of 3,005 square kilometres, collectively known as the Nuon River Project, and adjoins the northern Liberian border.
Nuon River is situated at the boundary between the Archaean and Birimian components of the West African Craton, and is located immediately along strike from the Ity Gold Project which has a gold endowment of some 5 million ounces.
These permits have never been evaluated by modern exploration techniques and contain significant alluvial and saprolite artisanal gold mining activity at mining camps at Barteh Jam, Nico, Middle East, and Mambo, respectively located in the Grand Gedeh, Cestos North, Zwedru North and Cestos South permits. A number of other camps are known to exist within the permit areas but have not yet been visited.
Soil sampling has been completed over Nico and Barteh Jam, and stream sediment sampling and airborne geophysical surveys have commenced over the whole Nuon River Project area.
Barteh Jam was discovered in 1946, and is the second largest artisanal gold camp in Liberia and contains the Big Hill saprolite prospect that has been defined over a strike length of 3,500 metres and width of 80 metres.
Big Hill is an open ended target that hosts numerous artisanal shafts along its entire length, and carries a series of stacked and sheeted quartz veins and breccia zones that trend from east to west, and dip at angle of approximately 25 degrees to the south.
Big Hill has good potential for low strip ratios, high tonnages per vertical metre, and hosts a deep zone of oxidised ore. This represents an excellent oxide open pit target and will be fully evaluated for continuity of gold grades along strike and at depth.
Big Hill carries abundant and visible free milling gold that is found within quartz veins, and where surface panning consistently produces 200 to 300 grains of gold along with quartz vein fragments containing coarse gold in each pan, and indicates potential for high values over a wide area.
An initial 5,000 metre RC drilling is expected to commence this month, and the rig may be retained on a longer term basis if initial results are positive. A diamond drilling rig is also available for deeper exploration and evaluation.
Management believes that Barteh Jam holds strong technical merit and may develop into the Company’s first significant gold resource.
Middle Island Resources has confirmed the presence of widespread visible gold at the Nuon River Project and is to fast track a drilling program to seek open pittable gold.
ANALYSIS
Promisingly, Newmont Mining Corporation (NYSE:NEM) has a 10% stake in Middle Island Resources, also providing project generation opportunities to the company. Institutions hold 18% of the company, the support from both is telling and a strong sign of the upside valuation potential in the company.
The company is currently developing four significant gold projects in Burkina Faso, Niger and Liberia.
Middle Island has a minimum exploration target of 1.1 million ounces of gold by December 2012.
The company’s tenements are in underexplored areas prospective for gold, close to known deposits, many with extensive artisanal workings.
With a strong management, Rick Yeates’ team has vast experience in the West African region.
The most advanced project is known as Reo and was vended from Newmont Mining for a major stake in the Company, and attests to the quality of management and project potential.
Reo has advanced targets at Morley and K4/K5, either of which holds the potential to meet the Company objective of defining a minimum 1.1 million ounce resource.
The Company is well advanced on defining two gold prospects at Reo that may develop into 1.1 million ounce resources, and has clearly stated that it views Barteh Jam/Big Hill as the most promising gold prospect in its portfolio.
This may provide investors with a “triple play”, and not the single play first thought.
At the one million ounce resource base, could ultimately translate and evolve Middle Island into a 80,000 to 100,000 ounce a year producer, which is a strong start to critical mass required in West Africa.
Middle Island has contracted to deploy 6 drilling rigs on 5 targets at 3 projects by mid month, and aggressively develop a number of new gold resources. The market can expect to see a constant flow of drilling news that will continue throughout the New Year.
Together, the company ticks many boxes and looks capable of being re-rated significantly in market valuation and share price in 2012 as exploration activity ramps up and as it increases the size of the global resource base.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24470/middle-island-resources-sets-sights-on-minimum-1-million-ounce-gold-resources-in-west-africa-in-2012-24470.html
Rox Resources hits high grade phosphate at Marqua
Rox Resources (ASX: RXL) just keeps the good news flowing with high grade phosphate intersections including 3 metres at 29.8% phosphate from 45 metres at its Marqua project, 300 kilometres southwest of Mount Isa in the Northern Territory.
Other highlights from the 29 hole, 1,900 metre reverse circulation drilling program include 4 metres at 28.6% phosphate from 13 metres, 3 metres at 22.6% from 25 metres and 1 metre at 21.8% from 15 metres.
Managing director Ian Mulholland said the potential exists for a substantial phosphate Resource to be defined at Marqua with further drilling, especially down dip to the north from known areas of high grade phosphate mineralisation.
“Currently a phosphate bearing horizon extending over 30 kilometres in strike length and dipping to the north has been drill tested at nominally 1 kilometre spacing, with closer spaced drilling in areas of outcrop, or higher grades,” he said.
“This extensive mineralised system has not been tested at depth, with the deepest drill only reaching 100 metres in depth, and most testing to only 50 metres.”
Three of the drill holes confirm the previous high grades intersected at the Coquina Creek prospect.
Grades above 30% phosphate were recovered from within two holes with intersections including 1 metre at 33.6% from 14 metres and 2 metres at 34.2% from 46 metres.
This zone of mineralisation occurs over a strike length of about 2 kilometres and appears to dip to the north.
The prospect has only been drilled at wide spacing (200 metre sections) and down dip to a maximum depth of about 50 metres.
The 2 kilometre strike length indicates that a substantial deposit could exist, but confirmation of this will require further drilling.
A new high grade zone at the Mauritania prospect has also been discovered with one hole intersecting 4 metres at 15.7% phosphate from 14 metres, including 1 metre at 21.8% from 15 metres.
One drill hole at the Library Ridge prospect also confirmed the continuation of mineralisation in that location.
Other known high grade mineralised areas also occur at Foss Hill, Red Heart and White Hill. Drilling was undertaken to test the extent of these mineralised zones over wider areas and was successful.
Marqua Potential
The Marqua phosphate project is located in the Georgina Basin which contains 90% of Australia’s hard rock phosphate resources.
A 25 kilometre long strike length of phosphate bearing rocks has been identified by surface sampling, which showed up to 39.4% phosphorous oxide, and drilling, which returned intersections of 6 metres at 19.9% phosphorous oxide and 5 metres at 23.7%.
Importantly, there is the potential to establish a large resource in a new phosphate area. Marqua has an exploration target of 50 to 100 million tonnes at 15 to 20% phosphorous oxide.
The only operating mine near to the region at present is at Phosphate Hill in Queensland, which is producing 2 million tonnes per annum.
Other developing phosphate projects in the basin are the 461 million tonne at 18.8% Wonarah and 305 million tonne at 15% D-Tree (Lady Annie).
Marqua, which covers about 2,600 square kilometres, is strategically located only 250 kilometres from the nearest railhead and gas pipeline at Phosphate Hill.
Improved Assays at Mt Fisher
The news of the high grade intersections follows close on the heels of a 9% improvement in gold assay values on selected samples from the Moray Reef gold deposit at the Mt Fisher project in Western Australia.
The improved assays were the result of using a cyanide bottle roll leach method (Leachwell), compared to traditional fire assays, on selected samples from Moray Reef.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24511/rox-resources-hits-high-grade-phosphate-at-marqua--24511.html
Other highlights from the 29 hole, 1,900 metre reverse circulation drilling program include 4 metres at 28.6% phosphate from 13 metres, 3 metres at 22.6% from 25 metres and 1 metre at 21.8% from 15 metres.
Managing director Ian Mulholland said the potential exists for a substantial phosphate Resource to be defined at Marqua with further drilling, especially down dip to the north from known areas of high grade phosphate mineralisation.
“Currently a phosphate bearing horizon extending over 30 kilometres in strike length and dipping to the north has been drill tested at nominally 1 kilometre spacing, with closer spaced drilling in areas of outcrop, or higher grades,” he said.
“This extensive mineralised system has not been tested at depth, with the deepest drill only reaching 100 metres in depth, and most testing to only 50 metres.”
Three of the drill holes confirm the previous high grades intersected at the Coquina Creek prospect.
Grades above 30% phosphate were recovered from within two holes with intersections including 1 metre at 33.6% from 14 metres and 2 metres at 34.2% from 46 metres.
This zone of mineralisation occurs over a strike length of about 2 kilometres and appears to dip to the north.
The prospect has only been drilled at wide spacing (200 metre sections) and down dip to a maximum depth of about 50 metres.
The 2 kilometre strike length indicates that a substantial deposit could exist, but confirmation of this will require further drilling.
A new high grade zone at the Mauritania prospect has also been discovered with one hole intersecting 4 metres at 15.7% phosphate from 14 metres, including 1 metre at 21.8% from 15 metres.
One drill hole at the Library Ridge prospect also confirmed the continuation of mineralisation in that location.
Other known high grade mineralised areas also occur at Foss Hill, Red Heart and White Hill. Drilling was undertaken to test the extent of these mineralised zones over wider areas and was successful.
Marqua Potential
The Marqua phosphate project is located in the Georgina Basin which contains 90% of Australia’s hard rock phosphate resources.
A 25 kilometre long strike length of phosphate bearing rocks has been identified by surface sampling, which showed up to 39.4% phosphorous oxide, and drilling, which returned intersections of 6 metres at 19.9% phosphorous oxide and 5 metres at 23.7%.
Importantly, there is the potential to establish a large resource in a new phosphate area. Marqua has an exploration target of 50 to 100 million tonnes at 15 to 20% phosphorous oxide.
The only operating mine near to the region at present is at Phosphate Hill in Queensland, which is producing 2 million tonnes per annum.
Other developing phosphate projects in the basin are the 461 million tonne at 18.8% Wonarah and 305 million tonne at 15% D-Tree (Lady Annie).
Marqua, which covers about 2,600 square kilometres, is strategically located only 250 kilometres from the nearest railhead and gas pipeline at Phosphate Hill.
Improved Assays at Mt Fisher
The news of the high grade intersections follows close on the heels of a 9% improvement in gold assay values on selected samples from the Moray Reef gold deposit at the Mt Fisher project in Western Australia.
The improved assays were the result of using a cyanide bottle roll leach method (Leachwell), compared to traditional fire assays, on selected samples from Moray Reef.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24511/rox-resources-hits-high-grade-phosphate-at-marqua--24511.html
WPG Resources updates market on Evergreen Energy Inc
WPG Resources (ASX: WPG) has a small shareholding in Evergreen Energy Inc, and today updated the market about the impact of Evergreen filing for bankruptcy protection under Chapter 7 of the United States Bankruptcy Code.
WPG regards the bankruptcy filing and liquidation as a very positive development for WPG’s 100% owned Penrhyn coal project in South Australia.
The trustee will be able to sell the K-Fuel patents and other intellectual property unencumbered by claims of third parties and other issues that were flagged by WPG’s in early December 2011.
WPG said that it is reviewing options for participating in this sale process, either alone or in joint venture with others.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24509/wpg-resources-updates-market-on-evergreen-energy-inc-24509.html
WPG regards the bankruptcy filing and liquidation as a very positive development for WPG’s 100% owned Penrhyn coal project in South Australia.
The trustee will be able to sell the K-Fuel patents and other intellectual property unencumbered by claims of third parties and other issues that were flagged by WPG’s in early December 2011.
WPG said that it is reviewing options for participating in this sale process, either alone or in joint venture with others.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24509/wpg-resources-updates-market-on-evergreen-energy-inc-24509.html
Baraka Energy & Resources’ partner Petrofrontier Corp secures drilling rig for Georgina Basin assets
Baraka Energy & Resources' (ASX: BKP, RBD: GR) joint venture partner Petrofrontier Corp (TSX-V: PFC) has secured Rig #918 with Ensign Australia for the drilling of two horizontal wells in the Southern Georgina Basin.
Rig #918 is a small double oil field rig which has a greater hook load and pump capacity compared to the previous rig, which should notably improve tripping times and reduce overall costs.
Drilling will begin on the horizontal section of Baraka’s MacIntyre-2H (in EP 127) well following the release of the rig from its current operations and mobilisation to the well site, expected to be in mid to late March.
Plans are to then drill a high angle pilot hole and horizontal leg of PetroFrontier's Owen-3 (in EP 104) well immediately after.
However, target dates are dependent upon completion of Rig #918's current drilling operations and the end of the wet season in the areas of MacIntyre-2 and Owen-3.
PetroFrontier is currently negotiating to secure a service rig to support its upcoming completion and stimulation operations at MacIntyre-2H, Baldwin-2Hst1 and Owen-3H.
Completion operations are expected to begin in April 2012. MacIntyre-2H, Baldwin-2Hst1 and Owen-3H will be frac'd, flowed and completed in that order.
Farm-In Partner
PetroFrontier is in the process of seeking a major farm-in partner to participate in the Georgina Basin exploration program.
The company has received numerous expressions of interest to farm in to its Georgina Basin holdings.
Results for MacIntyre-2 were very positive showing about 22 metres of true vertical depth pay with porosities varying between 5 and 11%.
Petrofrontier has appointed Macquarie Capital Markets Canada to seek a potential farm in partner, which would defray that company's costs.
Baraka has a free carried 25% working interest up to completion of a minimum of 500 metres of horizontal drilling into the Basel Arthur Creek Shale on either EP 127 or EP 128.
Baraka would not need to participate in any reduced percentage in the joint venture by virtue of any incoming party, and could meet any and all cost commitments when required to retain its full 25% participating interest in the joint venture.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24506/baraka-energy-resources-partner-petrofrontier-corp-secures-drilling-rig-for-georgina-basin-assets-24506.html
Rig #918 is a small double oil field rig which has a greater hook load and pump capacity compared to the previous rig, which should notably improve tripping times and reduce overall costs.
Drilling will begin on the horizontal section of Baraka’s MacIntyre-2H (in EP 127) well following the release of the rig from its current operations and mobilisation to the well site, expected to be in mid to late March.
Plans are to then drill a high angle pilot hole and horizontal leg of PetroFrontier's Owen-3 (in EP 104) well immediately after.
However, target dates are dependent upon completion of Rig #918's current drilling operations and the end of the wet season in the areas of MacIntyre-2 and Owen-3.
PetroFrontier is currently negotiating to secure a service rig to support its upcoming completion and stimulation operations at MacIntyre-2H, Baldwin-2Hst1 and Owen-3H.
Completion operations are expected to begin in April 2012. MacIntyre-2H, Baldwin-2Hst1 and Owen-3H will be frac'd, flowed and completed in that order.
Farm-In Partner
PetroFrontier is in the process of seeking a major farm-in partner to participate in the Georgina Basin exploration program.
The company has received numerous expressions of interest to farm in to its Georgina Basin holdings.
Results for MacIntyre-2 were very positive showing about 22 metres of true vertical depth pay with porosities varying between 5 and 11%.
Petrofrontier has appointed Macquarie Capital Markets Canada to seek a potential farm in partner, which would defray that company's costs.
Baraka has a free carried 25% working interest up to completion of a minimum of 500 metres of horizontal drilling into the Basel Arthur Creek Shale on either EP 127 or EP 128.
Baraka would not need to participate in any reduced percentage in the joint venture by virtue of any incoming party, and could meet any and all cost commitments when required to retain its full 25% participating interest in the joint venture.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24506/baraka-energy-resources-partner-petrofrontier-corp-secures-drilling-rig-for-georgina-basin-assets-24506.html
Globe Metals & Mining has cash backing of $0.18 per share, to buy back 5% of issued capital
Globe Metals & Mining (ASX: GBE) is currently extremely well funded with $39.2 million cash in the bank at the end of 2011, with the company initiating a share buy back.
Globe's cash position equates to a cash backing of $0.18 per share, with the company last changing hands at $0.17 intra-day today.
Subject to approval of ASIC, ASX and FIRB, (shareholders approval not required), the on-market buy-back is for up to 10.08 million shares, which represents around 5% of the issued capital, at no more than $0.23 per share.
Mark Sumich, managing director, commented: “Globe’s current share price does not reflect its intrinsic value, let alone its cash backing.
"Accordingly, given our strong cash position and the relatively small amount of cash required to undertake the buy back, the board considers this to be a very appropriate use of our funds.”
Globe is currently focused on Africa, and earlier in the month acquired the option for a 90% interest in five additional licences around the high grade ilmenite and vanadium-iron project at Memba in Nampula Province, Mozambique.
The company can earn up to an 80% interest in five additional licences through staged expenditure on exploration programs, with an option to purchase an additional 10% after five years from Mozambican company Siexpo Lda.
In total the five licences comprise about 1000 square kilometres in the highly active Nampula Province.
Globe is already proving the potential of its existing Memba project, in joint venture with Mihandzu Minerals, with previously released rock-chip samples showing very high grades of titanium with additional vanadium, including an average 47% titanium dioxide and up to 0.4% vanadium – which potentially is a valuable by-product.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24505/globe-metals-mining-has-cash-backing-of-018-per-share-to-buy-back-5-of-issued-capital-24505.html
Globe's cash position equates to a cash backing of $0.18 per share, with the company last changing hands at $0.17 intra-day today.
Subject to approval of ASIC, ASX and FIRB, (shareholders approval not required), the on-market buy-back is for up to 10.08 million shares, which represents around 5% of the issued capital, at no more than $0.23 per share.
Mark Sumich, managing director, commented: “Globe’s current share price does not reflect its intrinsic value, let alone its cash backing.
"Accordingly, given our strong cash position and the relatively small amount of cash required to undertake the buy back, the board considers this to be a very appropriate use of our funds.”
Globe is currently focused on Africa, and earlier in the month acquired the option for a 90% interest in five additional licences around the high grade ilmenite and vanadium-iron project at Memba in Nampula Province, Mozambique.
The company can earn up to an 80% interest in five additional licences through staged expenditure on exploration programs, with an option to purchase an additional 10% after five years from Mozambican company Siexpo Lda.
In total the five licences comprise about 1000 square kilometres in the highly active Nampula Province.
Globe is already proving the potential of its existing Memba project, in joint venture with Mihandzu Minerals, with previously released rock-chip samples showing very high grades of titanium with additional vanadium, including an average 47% titanium dioxide and up to 0.4% vanadium – which potentially is a valuable by-product.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24505/globe-metals-mining-has-cash-backing-of-018-per-share-to-buy-back-5-of-issued-capital-24505.html
Syndicated Metals unearths new 900m long copper, gold trend near Kalman in Mt Isa
Syndicated Metals (ASX: SMD) has discovered consistent high grade copper-gold mineralisation over 900 metres of strike from rock chip sampling along the Pindora Fault, 5 kilometres to the southeast of the Kalman deposit located in the Mount Isa region of Northwest Queensland.
The Kalman deposit is an advanced molybdenum-rhenium and copper-gold deposit covering 700 square kilometres in the mineral-rich Mt Isa region.
A review of the existing 60.8 million tonnes at 0.32% copper, 0.05% molybdenum, 1.19 grams per tonne (g/t) rhenium and 0.15g/t gold JORC Resource at Kalman is currently underway.
Importantly, the Kalman deposit has the potential to be a company maker for Syndicated with its significant exploration potential as a result of its sizeable targets.
Thirty two samples were collected within EPM13870, with 10 contiguous samples taken over the strike length returning strongly anomalous copper and gold averaging 0.6 grams per tonne (g/t) gold and 3% copper at what is known as the Pandora’s Gift prospect.
The Pindora Fault is sub-parallel to the Pilgrim Fault zone which hosts the Kalman molybdenum-rhenium and copper-gold deposit as well as a range of other base metal and gold targets.
The Pindora Fault zone can be traced at surface within Syndicated tenements for approximately 10 kilometres.
Sampling was carried out a nominal 100 metre centres along the northern 2.5 kilometre section of the fault within EPM13870, which is within the Kalman Joint Venture with Cerro Resources (ASX: CJO).
The Pindora copper mine is located about 3 kilometres north of the tenement boundary within the Pindora Fault.
Visible oxide copper mineralisation (malachite) has also been mapped along the southern strike extension of the fault as far as Syndicated’s Dronfield copper-gold prospect within the wholly owned EPM13869. This zone has yet to be sampled in detail.
The mineralised fault zone is believed to hold substantial potential to yield shallow copper-gold mineralisation to further augment resources at the nearby Kalman deposit, as well as being prospective for major discoveries at depth.
Syndicated Metals plans to undertake further sampling in the forthcoming field season.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24504/syndicated-metals-unearths-new-900m-long-copper-gold-trend-near-kalman-in-mt-isa--24504.html
The Kalman deposit is an advanced molybdenum-rhenium and copper-gold deposit covering 700 square kilometres in the mineral-rich Mt Isa region.
A review of the existing 60.8 million tonnes at 0.32% copper, 0.05% molybdenum, 1.19 grams per tonne (g/t) rhenium and 0.15g/t gold JORC Resource at Kalman is currently underway.
Importantly, the Kalman deposit has the potential to be a company maker for Syndicated with its significant exploration potential as a result of its sizeable targets.
Thirty two samples were collected within EPM13870, with 10 contiguous samples taken over the strike length returning strongly anomalous copper and gold averaging 0.6 grams per tonne (g/t) gold and 3% copper at what is known as the Pandora’s Gift prospect.
The Pindora Fault is sub-parallel to the Pilgrim Fault zone which hosts the Kalman molybdenum-rhenium and copper-gold deposit as well as a range of other base metal and gold targets.
The Pindora Fault zone can be traced at surface within Syndicated tenements for approximately 10 kilometres.
Sampling was carried out a nominal 100 metre centres along the northern 2.5 kilometre section of the fault within EPM13870, which is within the Kalman Joint Venture with Cerro Resources (ASX: CJO).
The Pindora copper mine is located about 3 kilometres north of the tenement boundary within the Pindora Fault.
Visible oxide copper mineralisation (malachite) has also been mapped along the southern strike extension of the fault as far as Syndicated’s Dronfield copper-gold prospect within the wholly owned EPM13869. This zone has yet to be sampled in detail.
The mineralised fault zone is believed to hold substantial potential to yield shallow copper-gold mineralisation to further augment resources at the nearby Kalman deposit, as well as being prospective for major discoveries at depth.
Syndicated Metals plans to undertake further sampling in the forthcoming field season.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24504/syndicated-metals-unearths-new-900m-long-copper-gold-trend-near-kalman-in-mt-isa--24504.html
Silver Lake Resources eyes potential third production centre with 1Moz gold project acquisition
Silver Lake Resources (ASX: SLR) will acquire an advanced gold exploration project with 1 million ounces in gold Resources and numerous targets in Western Australia following an agreement with Phillips River Mining.
Under the deal, Silver Lake and Phillips River have agreed to merge Phillips River’s assets into Silver Lake by a Scheme of Arrangement.
The acquisition has a transaction value of about $20 million, or about 2.5% of Silver Lake’s current market capitalisation.
With a JORC Resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper the assets represent an attractive medium term growth platform for Silver Lake.
Post-merger the Philips River assets will be collectively known as the Great Southern Gold Project.
Great Southern has two discreet exploration projects, Kundip and Munglinup covering more than 2,500 square kilometres of tenements located in southeast Western Australia.
Kundip Mining Centre
The Kundip Mining Centre has a current JORC resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper contained in two main mining centres within 10 kilometres of each other that have been subject to a Definitive Feasibility Study (DFS).
The Trilogy orebody is a polymetallic deposit located on cleared freehold farmland owned by Phillips River.
At this stage, Silver Lake does not view Trilogy as a priority and will not be pursuing the DFS to develop the deposit.
Kundip constitutes a number of high grade gold ore bodies. These deposits have been mined in the past on a small scale producing 121,000 tonnes at 18g/t for 68,000 ounces of gold from both underground and open pit sources that are underexplored at depth.
The regional potential is high at Kundip for further high grade gold deposits to be identified through a systematic and ramped up exploration campaign.
Kundip has a current JORC Resource of 8.9 million tonnes at 2.7g/t for 0.8 million ounces of gold.
The DFS for Kundip delivered a probable mining reserve of 2.8 million tonnes at 3.4g/t for 307,000 ounces of gold, with an average copper grade of 0.4%.
Post ramp up of Mount Monger and development of the Murchison in 2013, Silver Lake will increase regional gold exploration at Kundip with the view to establishing a third gold mining centre, with potential copper and silver credits.
Silver Lake will also assess a low capital operating scenario with a simple and straight forward processing circuit.
In addition, exploration will focus on infill drilling to convert current resources to reserves, extensional drilling to expand current resources and step out drilling to delineate new resources.
Munglinup Project
Munglinup is a large greenfield exploration project covering over 1,600 square kilometres in the Albany Fraser belt.
This is one of Australia’s most significant gold belts and hosts the 5 million ounce Tropicana deposit located 500 kilometres to the northeast.
The tenement package is on cleared agriculture ground with shallow cover and is essentially unexplored.
Initial exploration will consist of geochemical and geophysical methods to establish target areas for follow up drilling.
Importantly, the acquisition fits in with Silver Lake’s long running strategy of acquiring gold assets that provide the company with a dominant position in a highly prospective region, existing JORC Resources with significant scope to extend those resources, near term production ability and substantial exploration potential.
Mount Monger and Murchison
Acquiring Phillips River’s assets allows Silver Lake to further grow its gold business post ramp up of Mount Monger and development of the Murchison.
Silver Lake is targeting to increase production from the Mount Monger Operations to 200,000 ounces per annum by 2014 via mining from multiple underground and open pit ore sources.
The Mount Monger Operations have a current JORC Resource of 5.1 million tonnes at 8.9 grams per tonne (g/t) for 1.5 million ounces of gold.
In the Murchison, Silver Lake is developing a second gold mining operation with multiple mines feeding a central processing facility.
Production is expected to begin in the March quarter of 2013, ramping up to 100,000 ounces per annum in 2014.
The Murchison Project has a current JORC Resource of 18.4 million tonnes at 2.8g/t for 1.7 million ounces of gold.
Silver Lake is also actively exploring the Murchison with a $20 million budget for base metal targets within the Eelya Complex following the discovery of the high grade Hollandaire copper deposit.
Post-Merger
On completion of the merger of Phillip River’s assets, Silver Lake will have 4.3 million ounces of gold inclusive of 442,000 ounces of reserve and 10 million ounces of silver and 95,000 tonnes of copper across three substantial project centres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24501/silver-lake-resources-eyes-potential-third-production-centre-with-1moz-gold-project-acquisition--24501.html
Under the deal, Silver Lake and Phillips River have agreed to merge Phillips River’s assets into Silver Lake by a Scheme of Arrangement.
The acquisition has a transaction value of about $20 million, or about 2.5% of Silver Lake’s current market capitalisation.
With a JORC Resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper the assets represent an attractive medium term growth platform for Silver Lake.
Post-merger the Philips River assets will be collectively known as the Great Southern Gold Project.
Great Southern has two discreet exploration projects, Kundip and Munglinup covering more than 2,500 square kilometres of tenements located in southeast Western Australia.
Kundip Mining Centre
The Kundip Mining Centre has a current JORC resource of 1 million ounces of gold, 10 million ounces of silver and 95,000 tonnes of copper contained in two main mining centres within 10 kilometres of each other that have been subject to a Definitive Feasibility Study (DFS).
The Trilogy orebody is a polymetallic deposit located on cleared freehold farmland owned by Phillips River.
At this stage, Silver Lake does not view Trilogy as a priority and will not be pursuing the DFS to develop the deposit.
Kundip constitutes a number of high grade gold ore bodies. These deposits have been mined in the past on a small scale producing 121,000 tonnes at 18g/t for 68,000 ounces of gold from both underground and open pit sources that are underexplored at depth.
The regional potential is high at Kundip for further high grade gold deposits to be identified through a systematic and ramped up exploration campaign.
Kundip has a current JORC Resource of 8.9 million tonnes at 2.7g/t for 0.8 million ounces of gold.
The DFS for Kundip delivered a probable mining reserve of 2.8 million tonnes at 3.4g/t for 307,000 ounces of gold, with an average copper grade of 0.4%.
Post ramp up of Mount Monger and development of the Murchison in 2013, Silver Lake will increase regional gold exploration at Kundip with the view to establishing a third gold mining centre, with potential copper and silver credits.
Silver Lake will also assess a low capital operating scenario with a simple and straight forward processing circuit.
In addition, exploration will focus on infill drilling to convert current resources to reserves, extensional drilling to expand current resources and step out drilling to delineate new resources.
Munglinup Project
Munglinup is a large greenfield exploration project covering over 1,600 square kilometres in the Albany Fraser belt.
This is one of Australia’s most significant gold belts and hosts the 5 million ounce Tropicana deposit located 500 kilometres to the northeast.
The tenement package is on cleared agriculture ground with shallow cover and is essentially unexplored.
Initial exploration will consist of geochemical and geophysical methods to establish target areas for follow up drilling.
Importantly, the acquisition fits in with Silver Lake’s long running strategy of acquiring gold assets that provide the company with a dominant position in a highly prospective region, existing JORC Resources with significant scope to extend those resources, near term production ability and substantial exploration potential.
Mount Monger and Murchison
Acquiring Phillips River’s assets allows Silver Lake to further grow its gold business post ramp up of Mount Monger and development of the Murchison.
Silver Lake is targeting to increase production from the Mount Monger Operations to 200,000 ounces per annum by 2014 via mining from multiple underground and open pit ore sources.
The Mount Monger Operations have a current JORC Resource of 5.1 million tonnes at 8.9 grams per tonne (g/t) for 1.5 million ounces of gold.
In the Murchison, Silver Lake is developing a second gold mining operation with multiple mines feeding a central processing facility.
Production is expected to begin in the March quarter of 2013, ramping up to 100,000 ounces per annum in 2014.
The Murchison Project has a current JORC Resource of 18.4 million tonnes at 2.8g/t for 1.7 million ounces of gold.
Silver Lake is also actively exploring the Murchison with a $20 million budget for base metal targets within the Eelya Complex following the discovery of the high grade Hollandaire copper deposit.
Post-Merger
On completion of the merger of Phillip River’s assets, Silver Lake will have 4.3 million ounces of gold inclusive of 442,000 ounces of reserve and 10 million ounces of silver and 95,000 tonnes of copper across three substantial project centres.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24501/silver-lake-resources-eyes-potential-third-production-centre-with-1moz-gold-project-acquisition--24501.html
Subscribe to:
Posts (Atom)