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Welcome to the first edition of the new Resources Roadhouse conference companion. New, because The Roadhouse has struck a partnership deal with Australia’s foremost Resources Conference specialists Vertical Events and RIU. The deal is significant for The Roadhouse as it provides us with greater resources, from which we will be able to broaden the scope of our coverage of the small to mid-cap exploration and mining sector, taking it from extensive and all-embracing to exhaustive and comprehensive. The Resources Roadhouse burst onto the scene in 2011, since when it has established a firm foothold and loyal audience of retail and institutional investors who have used it as an introduction to the resources sector. Working with Vertical Events and RIU will allow The Roadhouse to keep providing FREE in-depth coverage of the sector to our followers via our web page www.resourcesroadhouse.com.au and our weekly newsletter. Under the new partnership, the Resources Roadhouse website will be undergoing some renovations, which once completed will enable readers to access all our written articles, video interviews and our new podcasts. These articles, videos, and podcasts will focus on ASX announcements and the progress of companies who are appearing at Vertical Events and RIU conferences. This will be supported by our FREE weekly email newsletter and quarterly magazines, produced to support Vertical Events’ Explorers Conference in Fremantle, RIU Sydney Resources Round-up, New World Metals Conference in Perth, and Brisbane Resources Round-up. So, sit back and enjoy reading this special issue of The Resources Roadhouse. It is, as they say, the start of something big. Remember…it all happens at The Roadhouse.
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Venture Minerals Limited (ASX: VMS) There has been plenty of column space across industry media devoted to the unfortunate tailings dam disaster suffered by Brazilian iron ore giant Vale. There has also been an equal amount of column space dedicated to how our domestic iron ore titans of BHP, RIO and FMG would be the beneficiaries of the tragedy, given that iron ore customers worldwide would need to tap them to fill the shortfall. Throw into that mix the affects of a recent cyclone on RIO’s Western Australian operations and the global stockpile just got a touch smaller. What hasn’t received too much attention, is that there are plenty of junior companies with reserves of iron ore that only need to push a button to get their operations up and running and profitable. Case in point: Venture Minerals (ASX: VMS) and the company’s Riley DSO iron ore mine in Tasmania. Venture Minerals launched a review of the Riley mine earlier this year on the back of the recovery in the iron ore price, and after receiving expressions of interest by several third parties in the Riley ore. Venture has had the Riley iron ore mine on care and maintenance since August 2014, before which the company had completed extensive pre-production work having already put in place all the necessary requirements to commence mining. This means the Riley was then and, more importantly, is now a ‘quick to market’ opportunity for the company. The current state of the iron ore market and price metrics are favourable to a start up at Riley and any further increase in the iron ore price and/or a decrease in the AUD/USD exchange rate will only further improve the economics of the project. A quick, back of the envelope, sketch of the Riley project highlights its potential. Riley is a fully permitted iron ore mine that is positioned to recommence operations reasonably quickly with approximately 90 per cent of the equipment Venture had previously purchased still on site. The project hosts Reserves of 1.8 million tonnes at 57 per cent iron with low impurities within a DSO deposit that is situated all at surface and located less than two kilometres from a sealed road that accesses existing rail and port facilities. “The previous work we carried out at the Riley iron ore mine has placed Venture in a strong position,” Venture Minerals managing director Andrew Radonjic told The Resources Roadhouse. “Should the market continue to tighten, and the iron ore price continue to improve, that just provides the company the ideal opportunity to commence production with relatively short notice.” The added benefit of bringing the Riley project on stream is that although it has a short minelife it is anticipated to generate anywhere from $20 million to $40 million, depending how the iron ore price travels. Such a healthy cash injection will mean that Venture will not need to tap the market for the funds required to conduct development
work on its 100 per cent-owned Mount Lindsay tin and tungsten project, also in Tasmania. Venture rates Lindsay as being one of the world’s largest undeveloped tin projects that is placed to take advantage of the recent rise in both interest and the price of tin. Tin is a vital element of modern-day technology due to its ability to make lithium-ion batteries last more than three times longer to meet the anticipated demand for better batteries in mobile phones, cameras, iPads and other mobile devices and the feverishly advancing hybrid and all-electric car market. The 148 square kilometre Mount Lindsay project sits between the world class Renison Bell tin mine, which has produced more than 231,000 tonnes of tin metal since 1968, and the Savage River magnetite mine that has operated for over 50 years and currently produces approximately 2.5 million tonnes per annum of iron pellets. Since acquiring the project in 2007, Venture has defined high-grade JORC-compliant Measured, Indicated and Inferred Resources of 4.7 million tonnes at 0.4 per cent tin and 0.3 per cent tungsten with over 60 per cent in the Measured and Indicated categories. Venture Minerals recently engaged UTS Geophysics to conduct a high-resolution Airborne Electromagnetic (EM) survey using its VTEMTM Max system over the entire Mount Lindsay project, with the aim of identifying further high-grade tin targets, especially those with the potential to host Renison Bell style mineralisation. Venture’s previous exploration at Mount Lindsay has identified potential tin targets located within the carbonate units and potentially the same fault zone (Federal-Basset Fault) that hosts the Renison mine, just 12kms along strike to the southeast. As Renison is a major Skarn, carbonate replacement, pyrrhotite-cassiterite style deposit, Venture considers the VTEMTM Max system to be the best exploration tool for making discoveries of Renison style tin mineralisation at Mount Lindsay. The company is hopeful the EM survey will generate drill targets that lead to further tin discoveries. The company is continuing to advance the recently commissioned Underground Scoping Study at Mount Lindsay. The study is focusing on the previously reported high-grade Resources of 4.7 million tonnes at 0.4 per cent tin and 0.3 per cent tungsten and will be looking to leverage on the earlier Feasibility Study. “There has been quite a lot of work carried out to advance the scoping study we have underway at Mount Lindsay,” Radonjic said. “We could get Mount Lindsay into production reasonably quickly given that much of the work we have used for the scoping study is from the previously completed feasibility study.” Venture Minerals is considering an underground mining scenario for Mount Lindsay. The company believes an underground operation would lower its environmental footprint and the associated environmental risk and
possibly reduce its capex from around $200 million to closer to $50 million. The flowsheet changes would include a much smaller and simpler plant, processing a higher-grade primary-source tin ore body. In other words, a project that is more permittable and more fundable, operating in a more ethical environment than where a large portion of the world’s tin currently comes from. Although it is currently concentrating on the Tasmanian assets within its portfolio that are more towards near-production, the company’s Thor project is making rumblings as an ideal candidate for a Joint Venture. The Thor prospect is situated within Venture’s 281 square-kilometre Southwest tenement package in Western Australia. Venture’s latest drilling at the Thor prospect intersected further massive sulphides with copper and zinc mineralisation. The company has interpreted results from the last two holes drilled to suggest it is vectoring in towards higher-grade zones within the Thor Volcanogenic Massive Sulphide (VMS) sequence. Drilling at Thor remains sparse with only two single drill holes drilled to date targeting two of thirteen priority VMS drill targets delineated around the initial discovery area. The company hopes further drilling will unlock the potential of Thor’s 20km VMS target zone. In this second drill campaign, drill hole TOR05 intersected massive sulphide zones of up to 2.4 metres (271.45m to 273.85m) and returned assays of up to 0.8 per cent zinc and 0.5 per cent copper and highly anomalous cobalt of up to 435ppm, confirming the prospect’s VMS style of the mineralisation. Thor has the same EM and geochemical signature as the adjacent VMS Kingsley discovery of international mining company Teck, which is one of several VMS occurrences in the Archean Yilgarn Craton of Western Australia. “We have been greatly encouraged by these latest results from our drilling program underway at Thor,” Radonjic said. “We are really looking forward to unlocking the potential of the VMS project to deliver high-grade mineralisation in the near future.”
EMAIL firstname.lastname@example.org WEB www.ventureminerals.com.au DIRECTORS Mel Ashton, Hamish Halliday, Andrew Radonjic, Dr Stuart Owen
Blackstone Minerals Limited (ASX: BSX) As the snows melt in the Canadian province of British Columbia (BC), Australian exploration play Blackstone Minerals looks to re-commence field activities at the company’s BC cobalt project. The company’s attention will be focused on the impressive copper, gold and cobalt targets it identified by way of a soil sampling program previously undertaken on the project. “We will be commencing our northern hemisphere exploration season in May once the snow starts to melt allowing us access to the ground,” Blackstone Minerals managing director Scott Williamson told The Resources Roadhouse. “We have a good number of targets at the BC cobalt project that we are keen to start testing. “Besides the Little Gem target we have identified another, sitting between Little Gem and the previously identified Erebor target, that we feel demands attention. “We have already encountered high-grade gold and cobalt at Little Gem and at Erebor, so we feel the new target is very interesting and well worth a look. “Besides these, we also have the Jewel prospect, which is a very big target that we consider having a lot of potential.” Blackstone has not even had to park the drill rig at Jewel for it to be gathering some attention from astute market watchers. Basically, the company didn’t have to do anything, thanks to the heavy lifting done by industry heavyweight, Newcrest, which recently made news with a $1.14 billion acquisition for a 70 per cent Joint Venture stake in the Red Chris mine of Toronto-listed Imperial Metals Corp. Newcrest is no stranger to extracting maximum gain from low-grade, porphyry systems, it has been doing it with a fair rate of success for some time at the Cadia mine in New South Wales, one of the world’s biggest gold mines — after copper credits — that has similar low-grade Resources to Red Chris. Newcrest mines Cadia at a rate of 30 million tonnes per annum, producing 240,000 ounces of gold — just in the December 2018 quarter alone. Red Chris has Measured and Indicated Resources of 1 billion tonnes at 0.35 per cent copper and 0.35 grams per tonne gold. These grades are the norm for BC-style porphyries and, although they may seem low-grade, they are akin to what is being mined by Newcrest at Cadia. Newcrest has gone into the deal, and the district, with eyes wide open, knowing it has the expertise to make such deposits work and providing plenty of encouragement for others to follow suit. “The Newcrest deal has really changed our view of the Jewel prospect, as we believe it has similar geology to Red Chris,” Williamson said. “The Jewel target has potential to be associated with a copper-gold porphyry with cobalt. “That deal has now put British Columbia copper-gold porphyries on the map.
“To establish such a project does require large capex; however, once underway they practically print money over a twenty to thirty-year mine life. “We don’t know whether we have one…yet, but there is a chance we could have.” Blackstone’s 2018 field work at the BC cobalt project consisted an extensive soil sampling program that identified several copper-goldcobalt targets. The program resulted in the identification of the Jewel coppergold-cobalt prospect, located 1.1 kilometres north-northeast of the project’s original focus, the Little Gem prospect. The new soil anomalies are greater than 1.5km long and coincide with IP targets, indicating a possible large sulphide bearing body at depth. These copper, gold and cobalt soil anomalies are located within a structural setting near the contact between the granodiorite and serpentinite, that Blackstone considers to be analogous in geological setting to the deposits of the Bou-Azzer primary cobalt district in Morocco. “We consider there to be forty-eight kilometres of that particular geology that delivered the Little Gem target,” Williamson explained. “We have only tested one target — Little Gem — out of the entire belt at this stage. “The key target that has now emerged for testing is the Jewel copper-gold-cobalt prospect.” Surface rock chip samples taken at the Jewel prospect returned grades of up to 5.6 per cent copper and 5.1 per cent copper. The BC project took further shape with the discovery of the Erebor cobalt-gold discovery, located 900 metres along an interpreted ultramafic trend to the south-west of the historic Little Gem adits. Results from surface rock chip samples taken from the Erebor discovery returned assays recording grades of up to 2.3 per cent cobalt and 32 grams per tonne gold. High-grade cobalt assays from surface rock chip samples taken from the Erebor discovery included: »» 2.3 per cent cobalt, 32 g/t gold and 1.1 per cent nickel; »» 1 per cent cobalt; »» 1 per cent cobalt; »» 0.6 per cent cobalt; »» 0.6 per cent cobalt; »» 0.5 per cent cobalt; and »» 0.4 per cent cobalt. These were complemented by high-grade gold and copper assays recorded from surface rock chip samples from Erebor, including: »» 16.7 g/t gold and 1.6 per cent copper; »» 10.4 g/t gold; and »» 1.5 per cent copper. Blackstone claims Erebor as the first discovery of significant cobalt-gold mineralisation in the region since prospectors discovered similar mineralisation at Little Gem in the 1930s.
The company believes the Erebor discovery further suggests the potential for the BC project to host multiple deposits, akin to the Bou-Azzer primary cobalt district in Morocco. Blackstone remains encouraged by the fact there has been very little modern-day exploration undertaken across the BC cobalt project since the activities carried out by the early prospectors at Little Gem. Even since then, the main activities have involved airborne geophysical surveys (including magnetic, radiometric and electromagnetic (EM) surveys) in the 1970s and a further two drill holes completed in 1986. The mineral occurrence at the Jewel prospect supported some gold production from 1938 to 1940. Although Blackstone Minerals’ southern hemisphere winter focus is on the company’s BC cobalt project, it also has the emerging Silver Swan South gold project, located eight kilometres along strike of the five million-ounce Kanowna Belle gold mine near Kalgoorlie in Western Australia. The Silver Swan South project comprises one exploration licence application E27/545 and six granted prospecting licences, P27/2191 — 2196 covering an area of 47.2 square kilometres and are located approximately 40 kilometres northeast of Kalgoorlie. Results from Blackstone Minerals’ 2018 drilling campaign at the Silver Swan South gold project produced several encouraging results. The company’s second phase aircore drilling program at Silver Swan South demonstrated its potential as being an emerging gold discovery hosting extensive gold mineralisation and basement geochemical anomalism. The basement geochemical anomalisms at the Black Eagle deposit as well as at the Black Hawk prospect are located along the interpreted extension of the Fitzroy Shear Zone, which hosts the Kanowna Belle gold mine.
The drilling encountered gold mineralisation and extensive basement geochemical anomalism at the Black Eagle prospect, providing a result of: »» SNAC070 10 metres at 3.2 grams per tonne gold from 68m within 15m at 2.2g/t gold from 64m to end-of-hole (EOH). On the back of this result, Blackstone was able to promote the Black Eagle prospect to priority drill target status. Blackstone Minerals remains keen to identify the extent and source of the gold mineralisation at Silver Swan South, and to follow-up results of surface sampling of the target ultramafic unit that previously confirmed the presence of nickel sulphides (pentlandite). “When we originally acquired this ground, we actually did so for its nickel potential,” Williamson said. “This is the project the company originally listed on, because we liked what we saw in terms of nickel sulphide potential, so we are now going to revisit that nickel sulphide potential.”
EMAIL email@example.com WEB www.blackstoneminerals.com.au DIRECTORS Hamish Halliday, Scott Williamson, Andrew Radonjic, Steve Parsons, Michael Konnert
Alliance Resources Limited (ASX: AGS) Alliance Resources recently moved to 100 per cent-ownership of the company’s Wilcherry project in South Australia and has signalled it intends shifting up a gear in advancing the Weednanna gold deposit. The company recently moved to 100 per cent-ownership of the Wilcherry project, acquiring the final percentage of the project from Tyranna Resources, greatly improving its ability to advance Weednanna on its own terms. The deal eliminates the administrative burden and costs associated with operating a joint venture and will streamline the future statutory approvals required at the time Alliance submits a Mining Lease Proposal in respect of the Weednanna gold deposit. Alliance is the latest in a line of suitors, dating back to the 1970s, eager to explore the project, located within the Gawler Craton, northern Eyre Peninsula, 40 kilometres north of Kimba in SA. The project’s previous owner was Trafford Resources, which had acquired the project in 2006 from Aquila Resources, which had earlier acquired the project tenements to explore for IOCG deposits like Olympic Dam. Trafford, along with IronClad Mining Limited, made a substantial investment on the project, however their efforts were mostly aimed at defining iron ore, Direct Shipping Ore (DSO) to be precise, in magnetite skarns, banded iron formations and near surface iron oxide deposits. Trafford made inroads, establishing Mineral Resources totalling 224 million tonnes at 28.8 per cent iron in seven deposits, with 2.9 million tonnes at 55.5 per cent iron being either DSO or Dry Magnetic Separation product. With the iron ore price enjoying some time in the limelight at present, it is well worth noting these Resources. Likewise, the 2012-13, drilling programs carried out by IronClad to test an outcrop of high-grade hematite at the Zealous prospect, 13 kilometres northeast of Wilcherry Hill. This drilling intersected high-grade tin (cassiterite) – which followers of the current electric vehicle debate would know to be a critical element in the manufacture of lithium-ion batteries. The best intercepts from these programs returned: »» 12ZLRC007 7 metres at 3.28 per cent tin from 52m; and »» 13ZLRC001 5m at 2.29 per cent tin from 128m in. Alliance Resources has approached Wilcherry from another angle, concentrating on what the company considers to be its substantial gold potential, and to date the company has increased both the project’s known mineralisation and potential. At the time of writing the company was close to completing a Scoping Study to assess the commercial viability of establishing a standalone mining and processing operation at Weednanna. In September 2018, Alliance Resources announced a maiden Mineral Resource estimate for the Weednanna gold deposit, part of the Wilcherry project, of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces.
Alliance has always been confident in there being potential to increase the size of this Mineral Resource with further drilling, given many of the gold shoots comprising this mineral resource are open in at least one direction. Alliance completed a 23-hole round of reverse circulation (RC) drilling at the Weednanna gold deposit in February this year to test for extensions of gold mineralisation in the southern area of the deposit at Shoots 4, 5E, and 11. The drilling stayed on script, with results from this drilling program continuing to grow the size of the Weednanna deposit outside of the Maiden Mineral Resource area. High-grade gold was encountered near the southern end of Shoot 4, returning intersections of: »» 19WDRC017 2 metres at 46.8 grams per tonne gold from 101m; and »» 19WDRC020 3m at 9.7g/t gold. The drilling also continued to provide greater clarity at shoot 5E, returning intersections of: »» 19WDRC004 3m at 6.9g/t gold from 106m; »» 19WDRC007 10m at 7.7g/t gold from 117m, including 7m at 10g/t gold from 118m; and »» 19WDRC010 2m at 19.9g/t gold from 77m. The gold potential of Shoot 11 was clearly demonstrated by intersections of: »» 19WDRCC012 3m at 7.3g/t gold from 97m (hangingwall); and »» 12m at 2.5g/t gold from 108m, including 8m at 3g/t gold from 108m; »» 19WDRC013 16m at 3.7g/t gold from 134m, including 10m at 4.3g/t gold from 134m; »» 19WDRC022 1m at 19g/t gold from 77m (hangingwall); and »» 7m at 4.5g/t gold from 90m. Alliance originally identified Shoot 11 in 2018 while carrying out 3D modelling of the geology of the Weednanna deposit. This shoot is positioned near the footwall contact of the PaleoProterozoic calc-silicate and magnetite skarn and was initially defined on two 25-metre spaced cross-sections by assay results including: »» 97WDRC010B 4m at 3.6g/t gold from 102m; and »» 18WDRC016 9m at 2.3g/t gold from 163m. During December 2018, Alliance completed the first targeted holes into this shoot that returned: »» 18WDRC064 11m at 1.3g/t gold from 97m;
»» 18WDRC065 7m at 1.5g/t gold from 112m; and »» 18WDRC066 2m at 16.1g/t gold from 126m. The recent drilling program has followed suit by hitting further major gold intersection that not only extended Shoot 11, but identified connection to Shoot 9, which is in the same geological position. Shoot 9 had also previously come to the company’s attention when it reviewed historic drill intersections that showed results from Shoot 9, included: »» 98WDDH004 7m at 1.5g/t gold from 163m; »» 98WDRC022 3m at 1.5g/t gold from 58m; and »» 98WDRC030 3m at 3.2g/t gold from 188m. The upshot from the latest drilling results Alliance has received from Weednanna is that they have confirmed that, as evidenced at Shoot 4, substantial gold mineralisation can occur near the footwall contact of the Paleo-Proterozoic calc-silicate and magnetite skarn, and that lower grade gold zones can act as a vector towards highergrade gold mineralisation. Historically there has been a limited amount of drilling carried out at the footwall contact of the skarn, meaning it remains poorly tested. Alliance is of the opinion that there is plenty of potential there to discover further gold in this geological position. The company has plans to keep the drillbit spinning at Weednanna with ongoing RC drilling programs planned to continue to grow the size of the deposit, kicking off with the next phase of drilling expected to commence during April. Alliance had prior carried out a Three Dimensional Induced Polarisation (3DIP) survey at the Weednanna gold deposit, to help target further areas of mineralisation.
Results from the 3DIP survey observed gold mineralisation is closely associated with chargeability bodies that exhibit moderate to high chargeability and that these chargeable bodies extend deeper than 200m below the surface. It also demonstrated there to be a strong correlation between high density, high chargeability and high gold concentrations at Weednanna. The 3DIP survey defined nine target zones based on where the high chargeability zones correlate with high density zones and are near, or along strike from, known high-grade gold shoots Alliance had delineated through its numerous drilling programs. Five out of the nine targets are shallow, which the company believes highlights the remaining near-surface potential to substantially grow the mineral resource. So, what the 3DIP survey produced was a chargeability model that closely correlates with underlying geological detail/mapping and known gold mineralisation at Weednanna. It deemed that many of the targets appear to correlate with the margins of the known gold shoots and some have clear structural control observed in aeromagnetic and gravity datasets. The highly chargeable zones from the 3DIP surveys also correlate well with high density zones identified by a detailed 3D gravity inversion model the company had generated in 2018 that suggested, like the recent drilling, there is clear potential for further discoveries at deeper levels than have been currently tested.
EMAIL firstname.lastname@example.org WEB www.allianceresources.com.au DIRECTORS Ian Gandel, Tony Lethlean, Steve Johnston
Galan Lithium Limited (ASX: GLN) With potential world-class projects in one of the hottest lithium jurisdictions globally, cash in the bank and a handful of exceptional exploration results under its belt, things are certainly looking promising for Galan Lithium. The Argentina, lithium-focused minnow wholly-owns six projects covering around 25,000 hectares, with potential lithium brine coverage conservatively comprising around 7,800 hectares, in South America’s Lithium Triangle on the Hombre Muerto salar in Argentina. Straddling the northwest corner of Argentina, northern Chile and southwest corner of Bolivia, the Lithium Triangle hosts the world’s largest reserves of lithium and around 60 per cent of world’s annual production of lithium, the bulk of which lies in the Atacama salar in Chile and Hombre Muerto salar in Argentina. Hombre Muerto - which lies in the northwest corner of Argentina - hosts the highest grade and lowest impurity levels of lithium in the country and is the second best salar in the world globally for lithium brine production after Atacama. Galan believes its landholding in the Hombre Muerto has the potential to host a substantial lithium deposit. Its six projects – Rana de Sal, Deceo, Catalina, Peta Pila, Santa Barbara and Candelas – are all strategically located in the salar, boarding some of the biggest names in the lithium brine space globally. The Sal de Vida project – owned by ASX-listed Galaxy Resources with a market cap of $750 million - is regarded as one of the world’s largest and highest quality undeveloped lithium brine deposits. Galaxy recently sold off the northern portion of the project to POSCO – market cap $30 billion – for a cool US$280 million. To the west of Sal de Vida lies recent New York-listed Livent Corporation’s Fenix operation which has been in production for over 27 years. Importantly, Galan has a wealth of experience on its board: managing director Juan Pablo Vargas de la Vega has over 15 years’ experience in ASX mining companies, stockbroking and private equity firms and was a specialist lithium analyst in Australia. He also has operated a private copper business in Chile and has worked for BHP, Rio Tinto and Codelco. Priority target – Candelas Priority target, Candelas, lies adjacent to Sal de Vida and encompasses an approximately 15km long by 3-5km structurally controlled basin, infilled with sediments hosting the brines. According to Galan’s interpretation of CSAMT (Controlled Source Audio-frequency Magnetotellurics) surveys, the project showed “…very conductive and shallow units that are compatible with units being saturated with brine, which constitute a great potential for lithium exploration.” With the geophysical results defining the brine potential, Galan set about planning a maiden drill program to test the geophysical model as well as detailed data on the stratigraphy within the Candelas channel.
After getting the greenlight from the Argentinean government, Galan kicked off a five-diamond hole program in January to test the 12-15-kilometre extent of the Candelas channel. Results so far from the program have sent tongues wagging in the minerals investment community. Living up to the hype Drilled immediately to the southeast of the Hombre Muertos salar, Galan’s maiden hole (C-01-19) certainly lived up to the company’s expectations. The hole hit a substantial intercept of brine from depths of approximately 200m metres to the end of the hole (401m). An exceptional high-grade intercept of 192m at 802mg/I Li was returned. Importantly impurities (magnesium and sulphate) were very low and similar to those observed nearby at the Fenix and Sal de Vida operations. The maiden hole results sent Galan’s share price skyrocketing to an all-time high of 68 cents in early March 2019. With their tails in the air, Galan quickly set about drilling their second hole some 9.5km south of the maiden drillhole and located on geophysical CSAMT line 4. The hole, unfortunately, didn’t quite live up to its predecessor. While geology was largely similar to that observed in the maiden drillhole, the tectonic basin in the area was much deeper, perhaps up to around 750m, than in the north where C-01-19 was drilled. Assay results from the hole confirmed field observations that a lower grade lithium bearing aquifer was intercepted. The lower values were a result of heavy dilution from hydrothermal waters being sourced from an adjacent deep-seated fault zone. Nearby fumaroles observed at surface supported this interpretation. C-02-19 was eventually completed to a depth of 662m with basement encountered at 632m. Third time’s a charm Despite this slight setback, Galan remained optimistic that Candelas hosted a large lithium resource. “Much has been achieved to date in a short time frame,” Vargas de la Vega said. “We are dealing with a unique geological setting for lithium brines and our knowledge of the region increases with the more work we do. “The lithium potential remains strong for Candelas as it does for our prospective Western tenements at Hombre Muerto.” Galan quickly set about drilling its third hole (C-03-19) at Candelas, this time 2.5km south of its highly successful maiden hole. In what was a great relief for the company, the hole intercepted highly conductive brines over around 154m from 276m to the end of hole (430m).
“The discovery of further brines within the Candelas channel reinforces our view that the project has the very real potential to host a significant lithium resource in one of the world’s premium salars at Hombre Muerto,” Vargas de la Vega said. Downhole geophysics indicated highly conductive and high Specific Gravity (SG) brine was still being encountered to the bottom of the hole resulting in the hole being further deepened to a final depth of 454m. Several packer tests were performed using the downhole data as guidance which indicated a preferred section from 313m to 454m with conductivities in excess of 200mS/cm and SG readings approximately 1.19 g/cm3. The rig has now been moved around 3km south of C-03-19 and 5.3km south of drill hole C-01-19 on CSMAT Line 3 where it has begun drilling the fourth hole. Galan is also seeking permits from Catamarcan authorities for further drillholes at Candelas beyond the initial five holes approved. Cashed-up Shortly after announcing the positive results from its third drillhole in April, the company set about raising $4 million at 27.5 cents per share to fund its ongoing drill campaign at Candelas and start initial resource work. The share placement received strong support from Australian and North American professional and sophisticated investors. “We are pleased to have received such strong support from a range of Australian and North American investors, who now join our existing shareholders in aligning themselves to the success we are looking to achieve through our ongoing exploration at the Hombre Muerto lithium project,” Vargas de la Vega said.
“We have achieved positive results to date, which we plan to expand through well planned exploration activities.” Looking ahead With significant results under its belt so far from its maiden drill program at Candelas and a $4 million boost to its coffers, Galan is fast tracking exploration with a potential resource estimate targeted for third quarter 2019. Lithium demand has jumped since 2015 fuelled by the spike in demand for lithium batteries in electric vehicles with current prices around the $US12,550 per tonne lithium carbonate equivalent (LCE). This demand is only expected to increase with the number of electric vehicles on the world’s roads set to triple by 2020, placing further upward pressure on prices.
EMAIL email@example.com WEB www.galanlithium.com.au DIRECTORS Nathan McMahon, Christopher Chalwell, Terry Gardiner, Juan Pablo Vargas de la Vega
Corazon Mining Limited (ASX: CZN)
Corazon Mining is a base metals explorer exploring two projects, one in each global hemisphere. Overseas it envelops the entire Lynn Lake nickel-copper-cobalt mining centre in Canada. Domestically it has the Mt Gilmore project in New South Wales that hosts the Cobalt Ridge deposit. Corazon owns 100 per cent of the Lynn Lake Mining Centre located in Manitoba – historically one of Canada’s most prolific nickel producing regions. Lynn Lake is a historical mining centre that was mined continuously for 24 years prior to closure in 1976. In 2015, Corazon consolidated the Lynn Lake mineral field for the first time since mine closure and in doing so created an important nickel-copper asset. Corazon recently announced information and results from initial metallurgical testwork carried out at the Lynn Lake nickel coppercobalt sulphide project in Canada. The company has declared its initial results from a metallurgical testwork program at Lynn Lake as exceptional having, for the first time, delivered separate high-value nickel and copper concentrates. The results include the production of a new nickel concentrate with a grade of 26 per cent nickel with recoveries of 71 per cent and a new copper concentrate with a grade of 27 per cent copper with recoveries of 77 per cent. These results are yet to be fully optimised, however Corazon expects on-going work will deliver further improvements. This technical breakthrough represents an important step forward in Corazon’s development pathway for Lynn Lake as it supports the production and dispatch of separate copper and nickel concentrates from site to smelters and removes the need for potentially costly secondary processing from a bulk (nickel-copper) concentrate onsite. Operations and metallurgical testwork completed since the mine closed were unable to achieve the nickel grades observed in this current testwork, or produce separate nickel and copper concentrates with the purity of this testwork. The company has testwork underway that is focused on ore characterisation, flotation and product definition for down-stream processing, and is designed to provide key data for future mining and development studies for the possible re-commencement of mining at Lynn Lake. Corazon has approximately 500 kilograms of fresh broken, mineralised fist-sized pieces of rock sample transported from site to Australia for analysis. The sample was delivered to ALS Metallurgy in Western Australia, and internationally recognised metallurgical consultants, METS Engineering, managed the testwork. The testwork included an initial flotation process to concentrate the copper and a subsequent flotation process to concentrate the nickel and cobalt. Modern advances in processing technologies and reagents have delivered substantial benefits and efficiencies with respect to metal
recoveries and product quality, which may in turn deliver significant reductions in both operating and capital costs associated with any future development of Lynn Lake. Corazon holds the right to earn up to 80 per cent of the Mount Gilmore cobalt-copper-gold project that hosts the rare, cobalt dominant sulphide Cobalt Ridge deposit, claimed by the company to be one of the highest-grade cobalt deposits in Australia. The company recently announced the discovery of a major copper-cobalt-silver-gold trend at the Mt Gilmore project, after its exploration activities discovered multiple, large (plus-one kilometre) priority targets within a major copper-cobalt-silver-gold feature of more than 11 kilometres in strike length, which forms part of the currently defined 22 kilometre-long, mineralised Mt Gilmore Trend. Corazon considers this newly identified Mt Gilmore geochemical trend to represent a district-scale exploration play for large intrusive-related copper-cobalt-gold deposits that provides the company with a unique early-stage copper-driven opportunity in eastern Australia. The region has been subject to little or no modern exploration activities or drill testing within the priority areas Corazon has defined. The geochemical anomalies were identified from surface sampling the company carried out at Mt Gilmore in 2018. This was part of a program that also included 3,893 soil samples and 230 rock-chip samples. The results provided compelling evidence of an extensive hydrothermal event within the project, containing metal associations indicative of large intrusive related copper-gold systems. Rock chip and grab sampling within these soil anomalies has returned high tenor copper (up to 21.6 per cent), cobalt, silver and gold. This sampling tested what Corazon has interpreted as being high-grade ‘leakage structures’ extending from much larger, concealed, copper sulphide-rich hydrothermal centres. These structures, in isolation, also provide prospective targets for further exploration and drilling. Corazon’s assessment that the numerous occurrences of copper-cobalt-gold mineralisation identified in late-1800s/early-1900s small scale mining operations may in fact be part of a much larger system, represents a great advancement for the project, substantially increasing it’s potential.
EMAIL firstname.lastname@example.org WEB www.corazon.com.au DIRECTORS Clive Jones, Brett Smith, Jonathan Downes, Dr. Mark Yumin Qiu
Cassini 2 Company Name Limited Resources Limited (ASX: CZI) XXX)
Cassini Resources punches well above its weight divisions for a junior exploration company. Cassini Resources is developing a project with potential to become a low cost (first quartile) nickel/copper operation with an anticipated initial mine life of over 15 years with a Joint Venture partner with industry pedigree. Cassini Resources acquired the Wets Musgrave Project (WMP) from BHP Billiton in 2014 from when it progressed the project by conducting regional exploration, in-fill drilling and further geological activities. The company’s initial work quickly confirmed the economic viability of the Nebo-Babel deposits, attracting the attention of industry heavyweight, OZ Minerals (ASX: OZL). In 2016 the two parties executed a Joint Venture Agreement to fast track development of the WMP, located in Western Australia. Besides the already established Nebo-Babel nickel and copper sulphide deposit, the projet also entails the emerging Succoth copper deposit. Under the agreement, OZL is funding a minimum of $36 million of development and exploration expenditure, including completion of a Definitive Feasibility Study (DFS), for a 70 per cent interest in the project. The agreement includes a minimum $28 million funding for continued studies on Nebo-Babel to progress it to a Decision to Mine, as well as a minimum regional exploration spend of $8 million to assist in identifying additional value adding opportunities. Cassini has taken that $8 million ball and run with it hard, and although it remains focused on the WMP, the company has its eyes on numerous regional opportunities it expects could provide exploration success. The company has an option to earn 80 per cent of the Yarawindah Brook nickel-copper-cobalt project northeast of Perth, near New Norcia. The project has had limited nickel, copper and cobalt exploration, despite a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation. Historic exploration has focussed primarily on a small platinum and palladium (PGE’s) resource which the Company views as a “path-finder” anomaly for massive nickel — copper — cobalt sulphides. An airborne electromagnetic survey in 2018 identified conductors worthy of further investigation, followed by a surface fixed loop electromagnetic (FLEM) survey over higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling. Cassini was encouraged enough by its exploration results to add additional tenements along strike, taking its total land position to146 square kilometres. The 100 per cent-owned Mount Squires project lies adjacent to the WMP but does not form part of the Joint Venture with OZ Minerals. Gold mineralisation was first identified at Mount Squires by Western Mining Corporation (WMC) during geochemical surveying
in the late 1990s. Now in the 2010s, Cassini has spent the past two years developing the project by consolidating tenements with prospective gold targets that were defined through historical drilling and geochemical data compilation. The current healthy Australian Dollar gold price has given impetus for Cassini to pay more attention to Mount Squires during the 2019 field season. Historical results from two targets, the Handpump and Centrifical prospects, have whetted Cassini’s interest. Previous drilling at the Handpump prospect returned gold intercepts including: 15 metres at 2.3 grams per tonne gold from 31m down hole. It is thought gold mineralisation at Handpump may represent more distal mineralisation that has leaked north-westwards along the major structure. The Centrifical prospect is most prominent soil geochemical anomaly with a zoned molybdenum-lead-zinc anomaly at the intersection of prominent northwest and northeast striking structures that may represent the heart of an epithermal mineralised setting. The company believes further desk top work may enhance these targets for drill testing and it recently acquired new remote sensed datasets to help map surface geology and provide better context for soil geochemical anomalies. At the 100 per cent-owned West Arunta zinc project in the Amadeus Basin, Cassini has been targeting sedimentary zinc targets since 2014. These targets have been developed over time through airborne electromagnetic, soil geochemistry, aeromagnetic and gravity surveys and a 10-hole RC drill program was carried out in 2018. Logistics meant results of this drilling were delayed, however, a preliminary analysis of results has now been completed showing anomalous values of zinc, lead, copper and silver were intersected in several holes with a best result of: »» WAC0022 5m at 0.15 per cent zinc and 2g/t silver from 97m. Cassini was still working its way through these results at the time of writing but indicated that one it has completed a full analysis it will then consider its approach to further exploration at the project.
EMAIL email@example.com WEB www.cassiniresources.com.au DIRECTORS Mike Young, Richard Bevan, Greg Miles, Jon Hronsky, Phil Warren
Middle Island Resources Limited (ASX: MDI)
Middle Island Resources has outlined a schedule of exploration and corporate activities focused on its stated intentions of recommissioning its 100 per cent-owned Sandstone gold processing plant at the earliest opportunity. Middle Island’s exploration to date at the Sandstone project has been largely focussed on assessing brownfields targets, such as the Two Mile Hill deposit. This has left the majority of greenfields targets untested or inadequately tested. Advancing the Two Mile Hill deposit will remain a priority, but while that carries on, further exploration will hone in on identifying and quantifying additional open pit deposits of sufficient gold grade to facilitate a recommissioning decision. Identification of the targets to be drilled goes back to 2017 when a Weights of Evidence (WoE) targeting study of the Sandstone gold project was carried out by structural geologist Dr Brett Davis that identified and ranked prospective areas within the project area. Of these targets only one target, the Davis prospect, has so far been tested. Two traverses of reconnaissance RC holes (5 holes) were drilled across the Davis East and Davis West anomalies to determine the nature and tenor of associated saprolitic mineralisation, encountering broad zones of ferruginous quartz veining within saprolitic ultramafic rocks. Initial results included a best intercept at Davis West of: »» MSRC259 1 metre at 1.88 grams per tonne gold from 23m depth. The new program of eight RC holes will test the two blind gold anomalies that were not drilled previously, and to follow up on the results from the previous RC drilling. Other WoE targets were identified besides the Davis target, situated within the southern portion of the Sandstone project. Historical exploration activities in this area were restricted to broad spaced soil sampling and limited shallow vacuum and RAB drilling that failed to adequately test beneath the transported cover. A planned program of geochemical auger and aircore drilling, comprising approximately 200 holes, will test eleven WoE targets across the southern portion of Mining Lease M57/129. Other proposed work will follow up a 2018 program of geological mapping, rock chip sampling, and soil sampling on the Dandaraga tenement. Three cohesive gold in soil anomalies were identified as the Agnes, Enigma and Central (Swede) gold anomalies. A 20-hole RC drill program is proposed to test these gold soil anomalies for a mineralised bedrock source. Drilling will comprise several East-West orientated sections across the trend of the soil anomalies, these will also test the extension along strike of mineralisation associated with historic gold workings at Swede, Agnes, and Enigma. Middle Island recently acquired the 158.4 square kilometre Well Exploration Licence (E57/1102), subject to finalising a heritage
agreement that occupies the southern end of the western limb of the Sandstone anticlinorium. The tenement has received minimal exploration activity in the past, and what was done was mainly broad spaced soil sampling across the northern third of the tenement. An initial, more systematic, low cost programme of geological mapping, rock chip sampling and soil sampling is proposed to determine to gold potential of the tenement. Results from a 2018 RC program on the McIntyre project have encouraged Middle Island to test the extensions of the intersected mineralisation. “A recommissioning decision for the Sandstone gold operation is predicated on defining adequate gold resources, at an acceptable grade, to justify the modest recommissioning costs and ensure sustainable production,” Middle Island Resources managing director Rick Yeates said. “This is being progressively achieved via a dual approach; systematic exploration on Middle Island’s own tenure and engagement with neighbouring companies to consolidate adjacent deposits.” Middle Island recently reached out to neighbour Alto Metals (ASX: AME), offering an all scrip off-market take-over offer for all that company’s issued ordinary shares. Middle Island considers combining of the assets of the two companies would create a company with near-term cash flow potential and considerable production and exploration upside. The company believes access to the Sandstone processing plant would provide Alto with an immediate, proximal and cost-effective processing solution for its gold resources that is not otherwise available. “The collective Middle Island-Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile,” Yeates said. “The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.” At the time of writing, Alto Metals had advised its shareholders to take no action and await further advice from the Board.
EMAIL firstname.lastname@example.org WEB www.middleisland.com.au DIRECTORS Peter Thomas, Rick Yeates, Beau Nicholls, Dennis Wilkins
Company Metalicity 2 Name Limited Limited (ASX: MCT) XXX)
With a bold new exploration strategy and a voracious appetite for acquiring patches of dirt in some of Western Australia’s most prolific mining regions, Metalicity is fast emerging as a junior exploration player with some serious upside. The WA-focused base metal minnow has been running the ruler over the red-hot Paterson Province copper belt and the prolific Fraser Range, acquiring exploration license applications in both regions. In the Paterson Province, Metalicity has generated more than 5,000 square kilometres of new Project Area Applications in close proximity to some of the names which dominate the region. Such as the Nifty mine that has produced more than 40,000 tonnes of contained copper concentrate per annum, the Telfer mine, which hit over 425,000 ounces of gold and 16,000 tonnes of copper last financial year, as well as Rio Tinto’s new darling deposit, Winu. Metalicity’s Desert Queen project, which consists of 679sqkm lies right amongst these giants, adjoining ground held by Rio Tinto. Its Mandora project is even larger, containing 1,487sqkm of prime Paterson land to the north-west of Winu and adjoins tenements held by Rio Tinto and Fortescue Metals Group. The projects are yet to be drilled; however, the company believes its odds of a major find are enhanced by a clever piece of geological interpretation conducted by the renowned geo-consultants Corporate Geoscience Group (CGSG) on behalf of Metalicity. The Group has used artificial intelligence and machine learning to analyse the findings of the Geological Survey of Western Australia’s 2017 SEEBASE project – a recently published project analysing the Canning Basin and adjacent Paterson Province. While SEEBASE was primarily developed for the oil and gas industry, the consultants have used advanced technology to manipulate the data and gain a new understanding of the Province for metals prospecting. The results have been extremely encouraging, allowing Metalicity to identify targets that are most likely to yield results with shallower cover. Additionally, this scientific edge has influenced further project acquisitions. In February this year the company acquired three new projects in the Paterson that have all shown promise based on data interpretation from SEEBASE. In the Fraser Range the company has also shown a preference for data-driven project acquisitions, adding two areas of interest to its books. The areas have received 635 metres of drilling by Kennecott Explorations during 1980, with the work searching for Olympic Dam-style mineralisation. While the exploration failed to find an Olympic Dam deposit it did intersect a mafic-intrusive anomaly – a rock type now known to be prospective for Fraser Range style nickel-copper sulphides, found at the Nova-Bollinger Mine and the Silver Knight deposit. Metalicity has since conducted a deep dive into the historical work, even inspecting the core from Kennecott’s drilling, which was
still available at the Kalgoorlie Core Library, concluding the project areas offer a unique opportunity to target large-scale and economic deposits of nickel-copper mineralisation. “It is very pleasing to see Metalicity build its asset base in Western Australia with some very interesting copper project additions further strengthening our portfolio of base metal assets,” Metalicity CEO and executive director Mat Longworth told The Resources Roadhouse. “The company has been through a period of transition and is now emerging as a highly attractive prospector with a clear value proposition.” While Metalicity has amassed a large project base it has also been inching closer to a major cash generating event through the divestment of its zinc assets. The market junior has spent the past few years inspecting the Admiral Bay zinc project, which is one of the world’s largest undeveloped deposits of zinc. The company is currently in the process of spinning out the asset to the Canadian TSX Venture Exchange, where it aims to attract North American investors with a risk appetite for large projects. The IPO is set to progress as soon as the global zinc market improves, providing shareholders with the tantalising prospect of investing in a market junior on the verge of a major cash windfall with a host of prospective projects.
EMAIL email@example.com WEB www.metalicity.com.au DIRECTORS Andrew Daley, Mathew Longworth, Justin Barton
Carawine 1 Company Name Limited Resources Limited (ASX: CWX) XXX)
Carawine Resources has a portfolio of four exploration projects, three Western Australia and the fourth in Victoria, each targeted for their potential high-value deposit styles and commodity groups. The company’s chief focus is the 100 per cent-owned Jamieson project, located near the township of Jamieson in the north-eastern Victorian Goldfields. The project comprises granted exploration licence EL5523 and holds the advanced Hill 800 gold and Rhyolite Creek zinc-gold-silver prospects. Hill 800 was discovered by New Holland Mining in 1994. Fast forward to 2018 when Carawine carried out its maiden diamond drilling program of 14 holes, exceeding the company’s expectations regarding both the width and grade of gold mineralisation. The maiden program allowed Carawine to re-interpret the geometry and orientation of the mineralised system as it identified multiple new mineralised zones. Buoyed by the results, Carawine wasted little time in hitting the ground again for a second phase of diamond drilling at Hill 800 late in November 2018 that has continued into 2019. Carawine recently announced some of the highest gold grades to be returned to date from its diamond drilling program at Hill 800, which achieved an increase in both the strike and width of the Stringer Zone mineralisation. Assay results from the extension of hole H8DD004 that targeted strike extensions to gold and copper mineralisation in the Stringer and 650 Zones, produced intervals of: Stringer and 650 Zones (combined interval) 67m at 2.13 grams per tonne gold, 0.1 per cent copper from 143m (0.3g/t Au cut-off). »» Stringer Zone 49m at 2.54g/t gold, 0.2 per cent copper from 143m (0.3g/t gold cut-off), including: »» 17m at 6.62g/t gold, 0.3 per cent copper from 157m (1g/t gold cut-off), including: »» 1.1m at 10.3g/t gold, 1.0 per cent copper from 162m (10g/t gold cut-off); and »» 1m at 20.2g/t gold, 0.2 per cent copper from 166m (10g/t gold cut-off); and »» 2m at 37.5g/t gold, 0.3 per cent copper from 172m (10g/t gold cut-off) »» 650 Zone 14m at 1.28g/t gold from 196m (0.3g/t gold cut-off), including: 7m at 2.27g/t gold from 203m (1g/t gold cut-off) “We recognised the importance of the Stringer Zone with our first drill holes at Hill 800 and these latest results show its potential to become a significant body of high-grade gold and copper mineralisation,” Carawine Resources managing director David Boyd said. “Each hole we drill gives us a better understanding of its size, orientation and grade, defining a wide mineralised envelope containing numerous extremely high gold grades which together make a very attractive target.
“This is also just our second hole into the recently discovered 650 Zone, with the results showing an increase in gold grade and alteration intensity. “Both zones remain open, with a drill hole currently in progress targeting the area immediately above these latest, exceptional intersections.” Carawine is determined to maintain the pace at Hill 800 and already has planning underway for exploration programs that will investigate the potential to grow Hill 800 beyond the current limits of drilling, and other high-priority prospects within the Jamieson project such as Hill 700, Mt Sunday Road and Rhyolite Creek. Meanwhile, way out west, Carawine has generated six new prospects at the Paterson project, in the eponymous Paterson Province of WA. Six priority target areas have been identified at the Red Dog and Baton projects from a combination of historic drill and geological data, re-processing of airborne magnetic and electromagnetic (EM) geophysical data. »» Baton Project: »» Javelin and Wheeler prospects: Discrete bullseye magnetic anomalies (analogous to Havieron and Winu discoveries) hosted by the Broadhurst and Isdell Formations. »» Red Dog Project: »» Earl Prospect: discrete magnetic and EM anomalies on the edge of a large interpreted felsic intrusion; »» Leatherneck Prospect: Alteration zone within the Broadhurst Formation (host to the Nifty copper deposit), with associated anomalous zinc (to 2,380ppm) and copper (to 375ppm) in limited drilling; »» Bravo Prospect: discrete EM anomalies within interpreted altered and faulted Nifty host rocks; »» Duke Prospect: discrete bullseye magnetic anomaly and coincident gravity anomaly, magnetite-bearing calc-silicate skarn, around a quartz monzonite intrusive. Anomalous copper (to 965ppm) and tin (indicative of skarn mineralisation) grades in limited drilling. Carawine is planning to advance these prospects to drill-ready status, while continuing target generation work for other Paterson tenements. “At Red Dog…we now have access to geophysical datasets which have only recently become available,” Boyd said. “This combined with our knowledge of mineralisation styles and settings in the region has allowed us to identify…six highly prospective new targets. “Our focus will now shift to planning the next stage of exploration on these tenements.”
EMAIL firstname.lastname@example.org WEB www.carawine.com.au DIRECTORS Will Burbury, David Boyd, Bruce McQuitty, David Archer
Galileo Mining Company 2 Name Limited Limited (ASX: GAL) XXX)
Galileo Mining has provided its investors plenty to smile about of late. The cashed-up nickel–copper-cobalt play hit its stride at the company’s Fraser Range project in Western Australia. Galileo — which listed back in May 2018 and is backed by highly successful prospector Mark Creasy who holds a 31 per cent stake — recently wrapped up a maiden drilling campaign at the Fraser Range project — a Joint Venture 67 per cent-owned by Galielo and 33 per cent-owned by Creasy’s private vehicle, Creasy Group. The Fraser Range — which lies around 250 kilometres from Kalgoorlie — is an emerging nickel province home to two world-class nickel discoveries, the Nova-Bollinger deposit and the Silver Knight deposit. Independence Group’s (ASX: IOG) Nova project — discovered back in 2012 on ground Creasy first started picking up back in the 1990s — effectively kicked off the ‘nickel rush’ in the Fraser Range region. In production since July 2017, Nova produced 22,258 tonnes of nickel and 9,545 tonnes of copper in its maiden year of production. Meanwhile, Creasy Group’s 100 per cent-owned Silver Knight deposit boasts an initial JORC resource of 4.2 million tonnes grading at 0.8 per cent nickel, 0.6 per cent copper and 0.04 per cent cobalt including a higher grade 200,000 tonnes at 3 per cent nickel, 1.9 per cent copper and 0.17 per cent cobalt. Importantly, Galileo’s exploration team helped discover Silver Knight when they were part of Creasy Group, highlighting the team’s significant exploration success in the region. Galileo is hoping another Nova or Silver Knight discovery lies on their tenement portfolio covering 492 square kilometres in Fraser Range, a province the company firmly believes has exceptional potential for new discoveries. Success at Lantern target In February 2019, Galileo kicked off an aircore drilling campaign at two high priority targets — the Lantern and Nightmarch prospects — the first drilling to occur at either prospect. Early results were highly encouraging, with Lantern returning anomalous nickel and copper results from the first drilling program completed. Best assay results included: »» 27 metres at 0.18 per cent nickel and 0.17 per cent copper from 47m and 8m at 0.21 per cent nickel and 0.03 per cent copper from 45m. Galileo considered tis result to greatly improve the prospectivity of the area. This was backed up by final samples from Lantern, which included a best result of 7m at 0.18 per cent nickel from 45m. The results were music to the ears of investors and management alike with managing director Brad Underwood quick to point out the program had successfully delineated target zones within Lantern of sufficient scale to potentially host significant economic nickel-copper mineralisation.
“We have been fortunate to hit anomalous nickel and copper in the first ever drilling program given the target zone covers over four square kilometres in size,” Underwood told The Resources Roadhouse. “This drilling has delivered numerous positive indicators with sample results, mineralogy, and rock types, all increasing the prospectivity of the area.” Galileo has now wrapped up first round drilling at Lantern with 76 drill holes completed for 4,451 metres. Geochemical, petrographical, and drill hole logging data identified multiple prospective intrusions over a horizon of around seven kilometres length. Petrography results from Lantern has also confirmed rock types considered to be capable of hosting magmatic nickel mineralisation. Follow up work included a wide-ranging ground EM survey in May, which was designed to identify electrically conductive signatures that may represent economic sulphide mineralisation. Empire Rose on the horizon At the other end of the Fraser Range belt, approximately 30 kilometres from the Nova mine site, lies Galileo’s Empire Rose prospect where a round of aircore drilling and EM and IP surveys identified a conductive target with potential for sulphide mineralisation at 250m deep. Drill testing of the prospect is scheduled to start in May with a Reverse Circulation (RC) pre-collar to be followed by a diamond drill tail through the target zone. Underwood said Galileo had now received drilling approvals for the prospect with drilling scheduled in May. “The upcoming work at Empire Rose will be the first time Galileo has conducted deep drilling in the Fraser Range,” he said. “Empire Rose is a stand-out target and it is an exciting time for the company as we prepare for drill testing.”
EMAIL email@example.com WEB www.galileomining.com.au DIRECTORS Simon Jenkins, Brad Underwood, Noel O’Brien
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Pepinnini Lithium Limited (ASX: PNN) Pepinnini Lithium is exploring and developing a lithium brine resource and production project in the Salta Province of northwest Argentina within the Lithium Triangle of South America. PepinNini holds eight mining leases in Salta Province, collectively known as the Salta lithium project, covering seven different salars (salt lakes), all of which the company considers having potential for lithium brine occurrences. Pepinnini released an initial lithium and potassium resource statement in June 2018 for the Rincon lithium brine project within the Salta project. The JORC 2012 resource statement included 60,000 tonnes of lithium carbonate equivalent and 270,000 tonnes of potash equivalent in the Measured and Indicated Resource categories, with an additional 6,000 tonnes of lithium carbonate and 26,000 tonnes potash in the Inferred Resource category. The company recently reported it had commenced brine sampling from monitoring boreholes on the Rincon project. Pepinnini explained that re-sampling of the boreholes is being carried out to validate the lithium concentration of the Resource estimation. The work involves thoroughly cleaning the boreholes of drilling fluids and sampling at specific depths for aquifer horizons. Other work in Argentina has included a geophysical Time Domain Electromagnetic (TEM) survey at the Salar de Incahuasi project. The survey identified two distinct zones; a halite surface layer with a conductive potential brine bearing layer below and a saturated conductive zone from the surface that is potentially brine bearing. The survey penetrated to 200 metres in depth with the interpreted brine bearing zone continuing beyond 200m, which was interpreted to indicate high resistivity values at surface are due to halite materials in salar surface with more conductive materials below it matching brines that may be rich in lithium.
EMAIL firstname.lastname@example.org WEB www.pepinnini.com.au
Trigg Mining Limited Trigg Mining is targeting Sulphate of Potash (SOP) from hypersaline brines in the salt lake systems of the Northern Goldfields of Western Australia. There is already other SOP exploration plays operating in the region working towards developing projects with proposed production rates of between 75,000 tonnes per annum and 400,000tpa SOP for a minimum of 20 years. Trigg Mining has two project areas — the Laverton Links project and Lake Throssell project, both of which are located near established infrastructure, with all prospects within 100 to 300 kilometres of the Leonora rail head, from which the products can be exported through the multi-use ports of Esperance or Fremantle to key international markets, or transported by rail to domestic markets on the East Coast. At the Laverton Links project east of Laverton the company is earning in to over 2,315 square kilometres across three prospects — Lake Rason, Lake Hope Campbell and East Laverton. The tenements contain more than 265km of brine hosted palaeochannels with the presence of SOP already identified at two of the three prospects. Trigg Mining sees the three prospects combining to become one large SOP production hub with brine sourced from trenches and bores from several production locations with evaporation ponds established on the playa surfaces. The Lake Throssell project covers 323sqkm of predominantly salt lake playa sediments and underlying palaeochannels east of Laverton on the Great Central Road connecting Laverton to Alice Springs and lies within Ngaanyatjarra Native Title determined lands. Lake Throssell is rated by Geoscience Australia as one of the most prospective lakes for sulphate of potash brine in the region. Native title negotiations are progressing in preparation of the grant of the tenement.
EMAIL email@example.com WEB www.triggmining.com.au DIRECTORS Keren Paterson, Mike Ralston, Bill Bent
DIRECTORS Rebecca Holland-Kennedy, Sarah Clifton-Brown, Phillip Clifford
Matsa Resources Limited (ASX: MAT)
St George Mining Limited (ASX: SGQ) St George Mining has been conducting an extensive drilling program at the company’s Mt Alexander project, located near Leonora in the north Eastern Goldfields of Western Australia. Drilling was undertaken on the eastern margin of the Fairbridge prospect to test a large chargeable anomaly St George had interpreted to be the western extension of a mineralised ultramafic at the Cathedrals prospect that intersected thick intervals of ultramafic rocks and nickel sulphide mineralisation. “Initial drill results at Fairbridge fit very well with our geological model for the Cathedrals Belt,” St George Mining executive chairman John Prineas said. “This is encouraging for the remaining nickel sulphide drill targets at Fairbridge — particularly the large chargeable anomalies recently identified down plunge of the known mineralisation at the Cathedrals Belt.” Other drilling involved three wide-spaced drill holes on the undrilled section of the Cathedrals Belt between the Investigators and Stricklands prospects testing for potential extensions of previously encountered high-grade mineralisation. All three intersected ultramafic and nickel sulphide mineralisation, confirming a new nickel sulphide zone in this previously unexplored area of the Cathedrals Belt. At the West End prospect DHEM surveys from four of six holes completed identified two off-hole anomalies for follow-up drilling. This supports St George’s interpretation that the mineralised corridor of the Cathedrals Belt may continue westwards from Investigators to the Ida Fault and supports the potential for this western extension of the Cathedrals Belt to host nickel sulphide mineralisation. “This kind of geologically driven and systematic exploration is the foundation for most major discoveries,” Prineas said. “We are very pleased with the positive results achieved already in the current drill program and the potential for more significant results as the drilling continues.”
EMAIL firstname.lastname@example.org WEB www.stgm.com.au DIRECTORS John Prineas, John Dawson, Sarah Shipway
Matsa Resources recently commenced underground mining operations at the Company’s 100 per cent-owned Red October gold project in Western Australia’s Eastern Goldfields. Matsa has mining activities, including decline preparation and other site preparation underway with first ore scheduled in the first half of the year. Starting mining operations at Red October follows two mine studies, which delivered a comprehensive mine plan, proposing a highly profitable, low cost targeted mining operation over an initial sevenmonth period with strong potential to extend mining in-line with the company’s goal of delivering a substantial long term mining operation at Red October. “I am delighted with the work done in getting the Red October gold mine to the point where we can announce mining and production in early 2019, subject to a suitable toll milling/ore purchase agreement being finalised,” Matsa Resources executive chairman Paul Poli said “Although planning indicates initial production over a sevenmonth period, I am very confident ongoing exploration and increased knowledge will see production go beyond that timeframe.” The initial phase of mining at Red October kicks off Matsa’s plan for the potential long-term mining of the project. At the conclusion of the initial seven-month mining operation, Matsa plans ramping up mining operations and to conduct further exploration drilling to confirm anticipated new mineable resources. New potential targets have already been identified for future mining as a result of the mining studies undertaken to date. The Red October resource remains open in all directions and is largely unexplored along strike and down-dip. Evidence exists within the drilling dataset of high-grade drilling intersections both inside and outside the mine footprint, indicating expansion potential adjacent to workings and further afield.
EMAIL email@example.com WEB www.matsa.com.au DIRECTORS Paul Poli, Frank Sibbel, Andrew Chapman
Nusantara Resources Limited
Broken Hill Prospecting Limited
Nusantara Resources commenced drilling at the Puncak Selatan nearmine prospect at the company’s 100 per cent-owned Awak Mas gold project in South Sulawesi, Indonesia. Field exploration leading up to the drilling had focussed on numerous near-mine prospects within a two-kilometre radius of the planned processing plant with the aim of enhancing and extending the proposed eleven-year mining operation. Earlier near-mine trenching produced encouraging results, including: »» PS11 5 metres at 2.32 grams per tonne gold, 5m at 2.8g/t gold, 2m at 2.13g/t gold; »» PS12 2m at 1.28g/t gold, 2m at 3g/t gold, 1m at 2.46g/t gold; »» PS19 »» 35m at 1.2g/t gold, including 7m at 2.5g/t gold, 3m at 2g/t Au & 1m at 4.7g/t gold; and »» PS21 12m at 1.7g/t gold, including 8m at 2.3g/t gold. Nusantara identified the Puncak Selatan prospect as a priority target from its surface mineralisation and proximity to the planned Awak Mas open pit. The six-hole drill program was testing the possibility of an extension to the Awak Mas eastern mineralisation as surface expression. “The commencement of near mine exploration is the first step in identifying additional resources that have the potential to be processed at the proposed processing plant and add further value to the long life, low cost Awak Mas gold project,” Nusantara Resources managing director Mike Spreadborough said. “The identification of significant mineralisation at the Puncak Selatan prospect and the near-mine area potential to extend the Awak Mas open pit, has made this a high priority drill target. “Our work continues to define the geological setting of the Contract of Work area and together with a planned geophysics program will increase the possibility of further discoveries that will enhance the project.”
Broken Hill Prospecting is focussed on discovery and development of strategic mineral resources across two primary geographical areas; the Murray Basin Region (Heavy Mineral Sands; titanium and zirconium) and the Broken Hill Region (industrial, base and precious metals, including the company’s Thackaringa cobalt and base/precious metal project). BPL claims the largest tenement holding in the Murray Basin covering approximately 7,300 square kilometres in New South Wales, Victoria and South Australia. The company’s Murray Basin exploration has targeted high-grade shallow strandline deposits with high value mineral assemblage as it looks to subject its tenement areas to historical data validation and geological modelling as it previously applied to its Jaws and Gilligans deposits in NSW. That work led to the estimation of Inferred resources of 113 million tonnes at 1.8 per cent heavy mineral (HM) at a cut-off of one per cent. In 2018 BPL was granted three new exploration licences in the Broken Hill Region, increasing its overall exposure in the province while securing several under-explored base, precious and industrial mineral prospects. The Thackaringa cobalt project is located 25km southwest of Broken Hill. BPL has a resource drilling campaign underway to increase the overall Thackaringa Mineral Resource base and define a component of Measured Resource, supporting ongoing Feasibility Studies. The total Thackaringa Mineral Resource estimate currently comprises: »» 72 million tonnes at 852ppm cobalt, 9.3 per cent sulphur and 10 per cent iron for 61,500 tonnes contained cobalt. The Mineral Resource estimate is contained in three main deposits: Railway, Big Hill and Pyrite Hill. The Thackaringa Cobalt Project is on target to become a worldclass cobalt producer, with recent metallurgical testwork recovering a high-value cobalt sulphate product.
EMAIL firstname.lastname@example.org WEB www.nusantararesources.com.au DIRECTORS Greg Foulis, Mike Spreadborough, Rob Hogarth, Robin Widdup, Richard Ness, Boyke Abidin
EMAIL email@example.com WEB www.bhpl.net.au DIRECTORS Creagh O’Connor, Trangie Johnston, Geoffrey Hill, Matthew Hill, Denis Geldard
Canyon Resources Limited (ASX: CAY) Canyon Resources reported a “very high-grade” Inferred Resource of 250.9 million tonnes at 50.8 per cent aluminium oxide (Al2O3) and 1.9 per cent silicon dioxide (SiO2) within the existing Resource at the company’s Minim Martap bauxite project in Cameroon. The Resource estimate followed a review of previous exploration on the Minim Martap project that identified zones of extremely high-grade bauxite with very low contaminants. Canyon declared the Resource validated its theory of the project being one of the highest-grade, very low silica bauxite resources globally, with potential to grow the scale of the very high-grade zones. “By conducting a more detailed assessment of the historic resource, we have identified significant areas with very high-grade aluminium oxide and low total and reactive silica on all of the Minim Martap licence plateaux,” Canyon Resources chief geologist Alexander Shaw said. “The remarkably high-grade, combined with very low levels of contaminants, and significant cumulative volume of greater than 250 million tonnes of bauxite in these areas further reinforces the fact that the Minim Martap project bauxite deposit is a true global tier 1 bauxite resource. “We are utilising the information from this resource analysis to assist to target the drilling campaigns, to identify new high-grade zones at the Minim Martap project.” An independent assessment of the existing Camrail rail network located adjacent to the Minim Martap project concluded the rail has capacity to transport commercial tonnages of bauxite. Canyon considers the existing rail line is under-utilised and has formed a working committee with Cameroon rail operators to identify a solution to access the rail line. As part of this, Canyon will present a solution including design, construction and operation of the Kribi rail link to the Cameroon Government.
EMAIL firstname.lastname@example.org WEB www.canyonresources.com.au DIRECTORS David Netherway, Phillip Gallagher, Emmanual Correia
Dark Horse Resources Limited (ASX: DHR) Dark Horse Resources is focused on Argentina, where it has invested in lithium and gold projects. The company’s objectives are to discover and define several multimillion-ounce gold deposits and to define substantial lithium resources, mine spodumene and brine, and produce high grade lithium products for the domestic and international battery and electronic markets. A Reverse Circulation drilling program underway at the Las Opeñas gold project in San Juan province is targeting high-grade gold, silver and base metal epithermal veins discovered during surface mapping and sampling by previous owners. Numerous veins have been identified and several are being drilled in the current program, locally named Rock Oven Target, Tramway Target and Tabano Target. Drilling to date has encountered interesting vein drill-intersections at shallow depths with mineralised rock chips observed in the drilling samples. Elsewhere in its portfolio, Dark Horse is continuing surface exploration works on its Santa Cruz precious metal projects, lately at the company’s precious metal project, Cachi. Mineralised prospects identified to date within the Cachi tenement suite, including Vetas Cachi, El Cruce, Morena, Vetas NW and Los Bloques have been interpreted to define the southern side of a probable large circular, andesitic caldera structure. This feature has an approximate diameter of eight kilometres, covering a large portion of the Cachi lease suite. A ground magnetics program is underway at Cachi to define structural traps, which may host economic mineralisation as indicated by the surface sampling. Gold grades vary up to a maximum of 9.72 grams per tonne and silver up to 226g/t. Drilling is planned to commence in September-October 2019, for which environmental permitting is in process.
EMAIL email@example.com WEB www.darkhorseresources.com.au DIRECTORS Nick Mather, David Mason, Jason Beckton, Brian Moller
Breaker Resources NL
Kin Mining NL
Kin Mining has been busy with developmental activity at the company’s Cardinia gold project (CGP) in Western Australia. Recent Resource definition drilling at the Helens prospect, part of the first open pit development at the CGP focused on confirming the geological interpretation of the deposit and upgrading Inferred Mineral Resources to Indicated Mineral Resources. All RC and Diamond holes undertaken as part of this program intersected target structures with 23 of the 28 holes encountering lode style mineralisation at the predicted position in the resource model. Kin anticipates completion of an updated Mineral Resource estimate and metallurgical testwork for the Helens deposit soon. The Helens deposit currently has a Mineral Resource Estimate of 1.03 million tonnes at 2.14 grams per tonne gold for 70,900 ounces, with 0.62 million tonnes at 2.18g/t gold for 43,200 ounces of Indicated Resource and 0.41 million tonnes at 2.07g/t gold for 27,700 ounces of Inferred Mineral Resource. Further, deeper diamond drilling at the Mertondale 5 deposit, focused on testing the geological, geotechnical and metallurgical assumptions for mining and interpretation of the deposit and understanding the controls on gold mineralisation. This drilling was an initial test of the continuity and direction of an interpreted northerly plunging shoot of high-grade historically mined gold mineralisation to determine if graphitic shale forms part of the mineralisation. The drilling improved Kin’s geological understanding of the Mertondale 5 prospect, and will guide future resource development drilling targeting expansion and category upgrade of the existing Mineral Resources at the deposit of 1.03 million tonnes at 1.8g/t gold for 60,000 ounces, consisting of 0.81 million tonnes at 1.83g/t gold of Indicated and 0.22 million tonnes at 1.71g/t gold of Inferred.
Breaker Resources has been busy at the company’s Lake Roe project, 100 kilometres east of Kalgoorlie in Western Australia. Drilling undertaken by Breaker extended the strike length of mineralisation at its Bombora gold discovery by 700 metres to 3.2 kilometres whilst enhancing its underground mining potential. Breaker has continued drilling with four rigs in action to extend and upgrade the Bombora deposit, and to identify the outer limits of initial open pit mining to finalise an open pit Pre-Feasibility Study (PFS). The company plans to update the existing 1.1 million ounce gold Resource in the June quarter that will include results from drilling the 700m of strike length which has been added since the Resource was last calculated. After two years of resource drilling, Bombora remains open in every direction and new zones of mineralisation were still being discovered. “It is increasingly obvious that the initial open pit will be large — and we are yet to find its limits,” Breaker Resources managing director Tom Sanders said. “We have drilled only ten holes substantially below the current Resource, four of which include intercepts exceeding 30 gram-metres, and six of which include intercepts exceeding 15 gram-metres. “This positive ‘hit rate’ at depth, together with our growing understanding of the deposit structure, gives us increasing confidence in the long-term underground mining potential at Bombora.” Breaker has been granted the Mining Lease for the Lake Roe gold project by Western Australia’s Department of Mines, Industry, Regulation and Safety allowing it to advance feasibility and permitting activities whilst growing the gold Resource. “This is another key step towards unlocking the immense value of the Lake Roe discovery,” Sanders said.
EMAIL firstname.lastname@example.org WEB www.breakerresources.com.au DIRECTORS Tom Sanders, Mark Edwards, Mike Kitney, Linton Putland
EMAIL email@example.com WEB www.kinmining.com.au DIRECTORS Jeremy Kirkwood, Andrew Munckton, Trevor Dixon, Brian Dawes, Joe Graziano
Aurelia Metals Limited (ASX: AMI) The primary focus of Aurelia Metals is the company’s Hera-Nymagee project, located south east of Cobar in western New South Wales. The Hera-Mymagee project comprises the 100 per cent-owned Hera gold-lead-zinc mining operation and the nearby Nymagee copper deposit. The project deposits represent typical ‘Cobar-style’ ore systems, which have a strong historical precedent for large scale, high-grade, long life mining operations. Recent exploration and Resource infill drilling in the upper North Pod lode at the Hera mine returned further high-grade base metal and gold intercepts, confirming its up-dip potential while extending mineralisation beyond the current Resource. The program returned multiple high-grade base metal, silver and gold intercepts including: »» HRUD648B 18.5 metres at 3.7 per cent lead+zinc (Pb+Zn), 27 grams per tonne silver and 8g/t gold, including 7m at 4.4 per cent Pb+Zn, 27g/t silver and 19.6g/t gold; »» HRUD642 7m at 45.1 per cent Pb+Zn, 229g/t silver and 0.3g/t gold; and »» HRUD651 14m at 18.3 per cent Pb+Zn, 188g/t silver and 0.8g/t gold, including 6m at 35.4 per cent Pb+Zn, 222g/t silver and 0.3g/t gold. Holes HRUD642 and HRUD651 extended the high-grade trend at North Pod beyond the current Inferred Resources and well beyond the current life-of-mine stoping plan. Intercepts outside of the existing Resources included: »» HRUD641 4.7m at 0.7 per cent Pb+Zn, 327g/t silver and 5.4g/t gold. The silver and gold mineralisation in hole HRUD641 extended the North Pod to the 170 Level, 100m above the current stoping plan. These results will be incorporated into AMI’s annual Resources and Reserves estimate later this year. “We expect these exciting results in North Pod will add to the Resources and Reserves,” Aurelia Metals managing director and CEO, Jim Simpson said.
EMAIL firstname.lastname@example.org WEB www.aureliametals.com.au DIRECTORS Cobb Johnstone, Jim Simpson, Paul Espie, Michael Menzies, Lawrie Conway, Susie Corlett, Paul Harris
Bellevue Gold Limited (ASX: BGL) Bellevue Gold is advancing the historic Bellevue gold mine in Western Australia which has an impressive history. The Bellevue gold mine was once one of Australia’s highest-grade gold mines, producing 800,000 ounces at 15 grams per tonne gold. Bellevue Gold announced a Resource upgrade at the company’s Bellevue gold project in Western Australia in February 2019, taking the Inferred resource estimate for the project to four million tonnes at 11.8 grams per tonne gold for 1.53 million ounces of gold (3.5g/t gold cut-off). The upgrade resulted from drilling carried out in 2018 to extend mineralisation of the historic Bellevue Lode and mineralisation adjacent to underground workings, known as the Bellevue Surrounds resource area and represented a 54 per cent increase in global tonnes, a 47 per cent increase in contained metal and only a 4 per cent reduction in global grade. “The exploration team has discovered and delineated in excess of 1.5 million ounces of high-grade gold in just over 12 months since resource drilling commenced and at a very low discovery cost of less than $15 per ounce,” Bellevue Gold executive director Steve Parsons said The company considers the upgrade confirmed the quality of the Bellevue gold project, which it claims as, globally, one of the highestgrade and fastest growing gold projects. “This Bellevue Surrounds resource estimate is important for the project as it is located within metres of the historic underground mine development,” Parsons said. Bellevue Gold is delineating further resource ounces from step-out drilling with four drill rigs operating at the Viago Lode and Western Corridor. The company anticipates the next round of drilling results will contribute to further resource upgrade.
EMAIL email@example.com WEB www.bellevuegold.com.au DIRECTORS Ray Shorrocks, Steve Parsons, Michael Naylor
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First Au Limited (ASX: FAU) First Au is drilling at the company’s 100 per cent-owned Gimlet gold project, just outside Kalgoorlie in Western Australia. First Au is following up a RC drilling program it completed in December 2018 and earlier aircore drilling that returned several strong high-grade gold intersections, including 4 metres at 393 grams per tonne gold from 52m. Early results from the RC drilling outlined mineralisation over 400m of strike length encouraging FAU to begin work on a potential JORC Resource. Although primarily focussed on targeting shallower oxide mineralisation, a decision to push the drilling deeper led to the claim of a new lode gold discovery, which appears open at depth. Assay results from the RC drilling include: »» 19GRC013 15 metres at 7.2 grams per tonne gold from 93m, including 2m at 16.4g/t gold from 101m and 2m at 17.4g/t gold from 105m; »» 19GRC017 2m at 6.2g/t gold from 114m and 4m at 4.3g/t gold from 123m, including 1m at 10.8g/t gold from 125m; »» 19GRC024 6m at 2.9g/t gold from 32m, including 1m at 9.3g/t gold from 37m and 5m at 1.4g/t gold from 54m and 6m at 2.7g/t gold from 63m; and »» 19GRC030 15m at 6.6g/t gold from 157m, including 2m at 31.4g/t gold from 169 m. “We are delighted with the excellent results from our follow up RC program,” First Au executive chairman Bryan Frost said. “We believe these results, together with our previous drilling programs, provide a solid basis to undertake further work aimed at pursuing FAU’s first JORC classified resource. “I would also like to congratulate our geological team and consultants for their great efforts in delivering these results.”
EMAIL firstname.lastname@example.org WEB www.firstau.com DIRECTORS Bryan Frost, Michael Quinert, Damon O’Meara, Richard Revelins
Peel Mining Limited (ASX: PEX) Peel Mining is systematically progressing Resource definition drilling at the company’s Wagga Tank-Southern Nights project, south of Cobar in western New South Wales. The company’s aim is to establish a maiden JORC Mineral Resource Estimate it has scheduled for delivery in June 2019. Assay results from drillhole WTRCDD199 returned: 23.1 metres at 22.54 per cent zinc, 12 per cent lead, 0.25 per cent copper, 200 grams per tonne silver and 1.42g/t gold from 224m, including 16.35m at 28.09 per cent zinc, 15.77 per cent lead, 0.26 per cent copper, 270g/t silver and 1.8g/t gold from 224.75m. Drillhole WTRCDD199 is located approximately 50 metres northwest of previously announced drillhole WTRCDD150 and exhibits the same high-grade tenor. Drillhole WTRCDD189 assay results included: 9m at 19.91 per cent zinc, 9.55 per cent lead, 0.17 per cent copper, 220g/t silver and 0.36g/t gold from 336m, including 5.4m at 29.26 per cent zinc, 13.97 per cent lead, 0.22 per cent copper, 326g/t silver and 0.45g/t gold from 337.2m. Peel said this hole had confirmed continuity between the shallower mineralisation that was previously encountered by previous drillhole WTRCDD150 and the deeper mineralisation in WTRCDD166, approximately 170m down dip. A further drillhole WTRCDD179, drilled on an infill section in the south of the Central Zone approximately 100m south of drillhole WTRCDD150 confirmed continuity of high-grade mineralisation to the south increasing the strike length of the high-grade zone. The company believes the drilling completed so far has defined approximate dimensions of the high-grade mineralisation. Detailed structural and geochemical studies are now underway to further develop the geological model in preparation for the anticipated maiden mineral Resource estimate in June 2019.
EMAIL email@example.com WEB www.peelmining.com.au DIRECTORS Rob Tyson, Simon Hadfield, Graham Hardie
Talisman Mining Limited (ASX: TLM)
Genesis Minerals Limited (ASX: GMD) Genesis Minerals boasts a portfolio of high-quality gold projects located in Western Australia’s premier gold districts. At the company’s 100 per cent-owned Ulysses gold project, betwixt Leonora and Kalgoorlie, Genesis is targeting development of a long-life, standalone underground mining operation. To that end, following an updated 760,000-ounce Resource for the project in October 2018, Genesis completed a Scoping Study that contemplated development of an underground mining operation with the construction of a stand-alone 0.8 million tonne per annum ore processing facility. Results demonstrated Ulysses to be a financially robust project with strong project fundamentals and low technical risk. The positive Scoping Study results encouraged Genesis to advance the project through a Feasibility Study while maintaining an aggressive approach to drilling to grow the Ulysses Mineral Resource and target potential new discoveries. Elsewhere in its portfolio, drilling recently confirmed a shallow gold mineralisation system with strong open pit potential at the company’s Barimaia Joint Venture in the Murchison District of WA. The results defined shallow gold mineralisation over 1km of strike, at previously identified McNabs and McNabs East gold prospects. Drilling encountered: McNabs »» 18BARC028 74 metres at 0.66 grams per tonne gold; and »» BARC031 29m at 0.84g/t gold and 28m at 0.71g/t gold. McNabs East Prospect »» 18BARC041 12m at 1.61g/t gold; and »» 18BARC046 17m at 0.94g/t gold. “Our focus remains squarely on advancing our flagship Ulysses Gold Project near Leonora as quickly as we can,” Genesis Minerals managing director Michael Fowler said. “But this is not a bad second string to have to our bow, and we’ll be doing as much as we possibly can to unlock its value for our shareholders.”
Talisman Mining has two main projects within its portfolio, one in Western Australia, the other in New South Wales. The Sinclair nickel project is within the Agnew-Wiluna Greenstone belt of WA, one of the world’s premier nickel provinces with reported endowment of over nine million tonnes of nickel and numerous world-class deposits. The Lachlan copper gold project consists 13 separate and mostly contiguous tenements and tenement applications over a strike extent of some 160 kilometres along the Gilmore Suture in the central Lachlan Orogen of NSW. Talisman Mining recently commenced an extensive regional air-core and reverse circulation (RC) drilling campaign designed to test various new structural, geophysical and geochemical target areas across the Sinclair project tenement package. In addition to this regional exploration work, Talisman is finalising details of a proposed deep diamond drilling program to facilitate the upgrade and increase of the existing Sinclair JORC Indicated and Inferred Mineral Resource that currently sits at 720,000 tonnes at 2.3 per cent nickel for 16,200 tonnes incorporating remnant nickel sulphide mineralisation adjacent to existing mine development, and extensional mineralisation down plunge of existing mine workings. Modelling of recent downhole electromagnetic (DHEM) surveys at the Blind Calf copper prospect at the Lachlan copper gold project returned multiple anomalous responses in a previously untested area of the emerging Blind Calf-Dunbars high-grade copper lode system. Talisman’s next phase of RC drilling will target these DHEM anomalies as well as down plunge extensions to the high-grade central core as well as seven holes to test new high-priority target areas. These new target areas were identified via structural and alteration mapping over the Blind Calf project area, combined with a historic data review.
WEB www.talismanmining.com.au DIRECTORS Jeremy Kirkwood, Daniel Madden, Brian Dawes, Karen Gadsby
EMAIL firstname.lastname@example.org WEB www.genesisminerals.com.au DIRECTORS Tommy McKeith, Michael Fowler, Craig Bradshaw, Gerry Kaczmarek
Rox Resources Limited
VRX Silica Limited
VRX Silica identified the silica sand shortage in the Asia-Pacific region as a unique opportunity for Western Australia. Silica sand is the primary ingredient in all types of glass manufacturing. It is used in making flat glass for buildings and vehicles, container glass for food and beverages, and as specialty glass for photovoltaic cells and mobile phones, as well as high-capacity lithium-ion (Li-ion or LIB) rechargeable batteries. The shortage is predicted to worsen and dwindling local supplies combined with increasing demand global has caused an increase in price. The Asia-Pacific region accounts for 47 per cent of global demand for silica sand and has been predicted by market analysts to grow by 6.1 per cent to 138 million metric tonnes in 2019. VRX Silica has acquired high-quality silica sand projects at Arrowsmith, located north of Perth in Western Australia, and at Muchea, also north of Perth. Both locations have the potential for substantial Mineral Resources and benefit from adjacent rail lines connecting to ports in Geraldton and Kwinana. VRX has aircore drilling is underway on the Muchea, and Arrowsmith North sand deposits as well as a third deposit, Central. Drilling is planned to extend and upgrade the present dataset that has been used to estimate the company’s silica sand Resources that currently stand at 421.6 million tonnes at 98.7 per cent silicon dioxide. “These drill programs follow on from the initial drilling and Resource estimates… to increase these Resources and our confidence level to estimate Reserves,” VRX Silica managing director Bruce Maluish said. “Results from these drill programs will add substantial value to our inventory and confirm our previous assumptions about the extent and quality of our silica sand projects.”
Rox Resources struck a Joint Venture with Venus Metals (ASX: VMC) to jointly explore the Youanmi shear zone in Western Australia. The JV includes a large tenure position along strike from the high-grade Penny West gold deposit. Rox will acquire an initial 50 per cent interest in the Youanmi gold mine JV (OYG JV) with the ability to increase to 70 per cent. Rox will manage the project. The Youanmi gold mine is currently held by Oz Youanmi Pty Ltd (OYG) and is on care and maintenance. VMC is a party to a Call Option Deed under which it has been granted the option to acquire all of the issued share capital in OYG on or before 30 June 2019. VMC also holds a substantial regional tenement position and as a 90 per cent participant in JV with a third party. The agreement between Rox and VMC results in the formation of two further JVs: the VMC Joint Venture, and the Youanmi Joint Venture, granting Rox the right to earn 50 per cent and 45 per cent respectively of the gold rights on those tenements. VMC is to be the manager of these joint ventures initially with Rox to take over operatorship if it elects to move to a 70 per cent interest in the OYG Joint Venture. “The acquisition of the Youanmi gold project is consistent with the company’s stated objective of acquiring near-production assets within its financial capacity,” Rox Resources chairman Stephen Dennis said. Since our new CEO Alex Passmore joined the company, our efforts to identify a suitable development project have increased and we look forward to realising the potential we believe exists at Youanmi.”
EMAIL email@example.com WEB www.roxresources.com.au DIRECTORS Alex Passmore, Stephen Dennis, Brett Dickson, Ian Mulholland
EMAIL firstname.lastname@example.org WEB www.vrxsilica.com.au DIRECTORS Paul Boyatzis, Bruce Maluish, Peter Pawlowitsch
Musgrave Minerals Limited
Emmerson Resources Limited
Musgrave Minerals’ cornerstone project is the 100 per cent-owned Cue project in the Murchison Province of Western Australia. Musgrave aims to increase the project’s current JORC code-compliant gold and copper resources through exploration to provide a viable path to development. The company has made great progress at the project’s Break of Day and Lena gold prospects, especially at Break of Day where it encountered high-grade gold mineralisation over a strike extent of approximately 360 metres that remains open at depth and along strike. Drilling has delivered a Resource for both Break of Day and Lena, which hosts more than 350,000 ounces of gold. Break of Day has a Mineral Resource of 868,000 tonnes at 7.15 grams per tonne gold for 199,000 ounces with plenty of potential to grow. The company’s focus on gold exploration on the salt lakes north of Break of Day led to the Lake Austin North gold discovery. Regional aircore drilling at Lake Austin North identified a new high-grade, high priority basement target for follow-up drill testing. Many of the aircore drill holes terminated in mineralisation, providing a target for follow-up diamond drilling. New aircore gold intercepts include: »» 19MOAC037 20 metres at 0.21 grams per tonne gold from 111m. »» 19MOAC036 38m at 2.08g/t gold from 111m down hole to EOH, including 5m at 14.8g/t gold from 135m, including 1m at 65.4g/t gold from 136m. “This regional drilling continues to define geochemical gold ‘halos’ to focus basement drill testing, with this intercept being the highest grade intersected from aircore drilling to date,” Musgrave Minerals managing director Rob Waugh said. “The goal is to define all the individual high-grade basement deposits beneath this gold halo.”
Emmerson Resources is fast tracking exploration across five early-stage gold-copper projects in New South Wales. Emmerson Believes its five exploration projects contain attributes like the known deposits within the Macquarie Arc, that hosts over 80 million ounces of gold and greater than 13 million tonnes of copper, yet they remain underexplored. Emmerson also holds an impressive land holding position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia’s highest-grade gold and copper fields that has produced over 5.5 million ounces of gold and 470,000 tonnes of copper. Recent drilling across the TCMF produced encouraging results, including early results from The Susan prospect in the Southern Project Area (SPA) that demonstrated potential for shallow, high-grade gold in the oxide zone. Drilling in the SPA is part of a $5 million earn-in funded by Territory Resources aimed at growing known gold mineralisation around the historic mines that are in the Mining Schedule. »» SS001 11m at 48g/t gold, including 9m at 58.5g/t gold from 26m; and »» SS003 8m at 15.7g/t gold, including 2m at 26g/t and 1m at 41g/t gold from 22m. “These high-grade results from our Tennant Creek project speak for themselves and support our strategy of building a pipeline of high-grade, high-value mines which feed into the Mine Schedule,” Emmerson Resources managing director Rob Bills said. “The Susan project is within the JV area with Territory and is where Territory are funding $5 million over five years to earn a 75 per cent equity interest.” Further drilling is currently being planned across many of the projects in the Mine schedule, including drilling at Eldorado, Black Snake and The Susan. Mine planning, optimisation studies and permitting also continue.
EMAIL email@example.com WEB www.musgraveminerals.com.au
EMAIL firstname.lastname@example.org WEB www.emmersonresources.com.au
DIRECTORS Graham Ascough, Rob Waugh, Kelly Ross, John Percival
DIRECTORS Andrew McIlwain, Rob Bills, Dr Allan Trench
Comet Resources Limited (ASX: CRL)
DGR Global Limited (ASX: DGR) DGR Global describes itself as being, “not just another resources company”. In fact, DGR Global prefers to present itself as a, “resource company creator”. The company focuses on project generation, strategic tenure acquisition, corporate development and investment capabilities, which in turn, provides its shareholders with diversity across several different commodities, sovereign jurisdictions and international financial exchanges. DGR is focussed on an inter-generational, global search for tier one resource projects that will address the current global boom for in-demand commodities. The company’s strategic publicly listed creations cover a wide range of heavily demanded commodities such as copper, gold, lithium, cobalt, nickel, tin, oil, gas, iron ore and bauxite. These companies were all created, seeded and floated by DGR and include SolGold (copper, gold), Armour Energy (gas, oil, condensates), IronRidge Resources (lithium, gold, iron ore, bauxite), Dark Horse Resources (lithium, gold) and Aus Tin Mining (tin, cobalt, nickel). DGR Global is continuously exploring different jurisdictions for projects and boasts a pipeline of subsidiaries that are at grassroots exploration stage. 100 per cent-owned Coolgarra Minerals conducted first pass shallow drilling on the Greenvale South project area in north Queensland, encountering a gold intercept of 14 metres at 1.67 grams per tonne at the Wallys Hope North prospect. A cobalt nickel intercept of 8m at 0.16 per cent cobalt and 0.74 per cent nickel was recorded at the Wade prospect. Auburn Resources, a 49 perr cent-owned subsidiary claimed a copper molybdenum discovery at the Calgoa project north-west of Gympie, Queensland where drilling at historic mine workings returned 156m at 0.24 per cent copper and 305ppm molybdenum from 116m. Further drilling is expected to yield more porphyry scale intercepts and locate zones of higher grade.
EMAIL email@example.com WEB www.dgrglobal.com.au DIRECTORS Bill Stubbs, Nick Mather, Brian Moller, Vincent Mascolo, Ben Clearly
Comet Resources is progressing the company’s 100 per cent-owned Springdale graphite project, located east of Hopetoun in Western Australia. The project comprises three tenements within the deformed southern margin of the Yilgarn Craton and constitutes part of the Albany-Fraser Orogen. Graphite is making headway as a commodity due to its industrial applications. Graphite is used as a lubricant, to line furnaces and crucibles used to make steel and in the construction of batteries, engine parts and brake linings. The recent discovery of graphene, the component part of graphite, has world changing potential. Graphene is one atom thick but extremely strong and lightweight, 200 times the strength of steel. Its properties make it a revolutionary resource for industry and technology. Comet recently commenced a reverse circulation (RC) drilling program at Springdale to test strike extensions to the project’s Northern Zone graphite resource and test high-priority new targets. The drilling follows the release last year by Comet of its Maiden Springdale Graphite Resource of 15.6 million tonnes at six per cent total graphitic carbon (TGC), including 2.6 million tonnes at 17.5 per cent of high-grade TGC. The Northern Zone of that resource is located within an interpreted fold closure where previous drilling located broad high-grade graphite mineralisation. The drilling is being carried out using funding from the Western Australian Government’s Exploration Incentive Scheme (EIS). Comet is also undertaking physical exploration works and metallurgical testwork on samples from Springdale with the aim of providing an understanding of the amenability of the graphite at Springdale to convert to graphene and/or to be used in battery anodes and other technologies as it moves towards understanding and realising its commercial value.
EMAIL firstname.lastname@example.org WEB www.cometres.com.au DIRECTORS Philippa Leggat, Alex Molyneux, Hamish Halliday, David Prentice
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Ardiden Limited (ASX: ADV) Ardiden has a portfolio of lithium and gold projects located in the established mining jurisdiction of Ontario, Canada. Of these, the 100 per cent-owned Seymour Lake lithium project, which contains the North Aubry and South/central Aubry lithium deposits, has received the most attention of late. Ardiden released an aggregate JORC Code 2012-compliant Mineral Resource for Seymour Lake of 4.8 million tonnes at 1.25 per cent lithium oxide (Li2O) and 186ppm tantalum oxide Ta2O5. The Mineral Resource is comprised of: North Aubry: Indicated Mineral Resource of 2.13 million tonnes at 1.29 per cent Li2O and 210ppm Ta2O5 Inferred Mineral Resource of 1.7 million tonnes at 1.5 per cent Li2O and 189ppm Ta2O5; and South Aubry: Inferred Mineral Resource of 1 million tonnes at 0.8 per cent Li2O and 128ppm Ta2O5. “We are delighted with the big increase in the North Aubry Resource and definition of a maiden Mineral Resource at South Aubry,” Ardiden executive director technical Peter Spitalny said “Furthermore, the presence of robust exploration targets at Seymour Lake provides…a platform to define additional Mineral Resources. “We have accomplished what we set out to achieve from Phase one of the project, significantly growing the size of the project.” Besides the already defined Seymour Lake Mineral Resources, Ardiden believes there to be other noteworthy Exploration Targets present, including the continuation of the North Aubry pegmatite beyond its current limits. Three prospects present spodumene-bearing pegmatites and supporting evidence suggests further drilling is warranted to test them. Ardiden’s exploration efforts to-date at Seymour Lake have confirmed potential to add Mineral Resources. This exploration upside, along with metallurgical tests confirming high-quality spodumene concentrate can be produced, provide a robust development and growth platform at Seymour Lake.
EMAIL firstname.lastname@example.org WEB www.ardiden.com.au DIRECTORS Neil Hackett, Dr Michelle Li, Peter Spitalny, Pauline Gately
AVZ Minerals Limited (ASX: AVZ) AVZ Minerals project portfolio includes interests in exploration projects prospective for lithium, tin, tantalum and associated minerals located in the Democratic Republic of Congo. Project interests include the Manono lithium tin project, a lithium-rich pegmatite deposit, 100 per cent interest in the surrounding Manono Extension project (lithium, tin, tantalum) and the Katanga Regional project (lithium, base metals and rare earths). AVZ Minerals’ major focus is on the development of the company’s Manono project, which it considers could potentially be one of the world’s largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits. The Manono project is owned by AVZ (60%), state-owned enterprise La Congolaise D’exploitation Miniere SA (30%) and private company Dathomir Mining Resources SARL (10%). AVZ is responsible for funding expenditure to completion of a feasibility study. AVZ recently reported further strong results from Mineral Resource drilling at the Manono from the Carrier de l’Este deposit. The drilling identified grade continuity both down-dip and along strike at Carriere de l’Este confirming continuity of pegmatite under alluvial cover and shallow dipping high-grade intersections present within wider zones of well mineralised spodumene pegmatite. AVZ believes the high-grade mineralisation from Carriere de l’Este could potentially be blended with existing Roche Dure mineralisation to possibly reduce payback periods. “Carriere de l’Este is unlike Roche Dure in that it has higher grade zones within well mineralised pegmatite suggesting a more classical zonation model for this large pegmatite,” AVZ Minerals managing director Nigel Ferguson said. “Depending on future drilling, this may open up possibilities for high grade blending with Roche Dure mineralisation to shorten pay back periods and is definitely worth considering as we move through the mining study phase currently underway.”
EMAIL email@example.com WEB www.avzminerals.com.au DIRECTORS Nigel Ferguson, Graeme Johnston, Rhett Brans, Hongliang Chen, Guy Loando
Ardea Resources Limited
Marenica Energy Limited
Ardea Resources’ main project is the company’s 100 per cent-owned Goongarrie nickel-cobalt project in Kalgoorlie, Western Australia. Ardea claims Goongarrie to be the largest cobalt resource in the developed world that it is developing to become a long-term producer of high-quality nickel-cobalt sulphate. The project offers plenty of upside with the current Resource of 773 million tonnes at 0.71 per cent nickel and 0.05 per cent cobalt accounting for five per cent of the project landholding. Continued assessment of the Bardoc Tectonic Zone adjacent to Goongarrie is yielding high-quality targets that will be assessed by future drilling. Goongarrie is one of three fronts Ardea is developing: with others being advanced-stage WA gold and nickel sulphide exploration, including the Mt Zephyr gold and nickel sulphide target and the demerger of its New South Wales gold and base metal assets. Drilling at Mount Zephyr is assessing gold and nickel-copper-PGE potential of several project areas. The drilling aims to provide data that will progress each project to a second, more thorough, deeper and/or more extensive phase of drilling. “The Goongarrie nickel cobalt project is our core asset,” Ardea Resources executive chair Katina Law said. “Complementing the Goongarrie development work, we have the emergence of new gold and nickel sulphide targets from Ardea’s West Australian nickel laterite tenure as an exciting new exploration direction for Ardea. “The New South Wales assets have advanced considerably… allowing the decision to proceed with an IPO during 2019 and appoint independent experts to commence the spin-out process. “The company has a clear development strategy and is well-funded. “This financial strength will provide additional capacity to execute our work programs and enhance our asset base during 2019.”
Marenica Energy has two key areas of focus at the company’s uranium projects in Namibia: uranium exploration and integration of its patented beneficiation process called U-pgrade™. Marenica believes its U-pgrade disruptive beneficiation process can revolutionise surficial uranium processing by reducing processing capital and operating costs by around 50 per cent and making lowergrade projects much more competitive and financially viable. Marenica’s two uranium projects, the 75 per cent-owned Marenica uranium project and 100 per cent-owned Mile 72 uranium project are located within the Erongo uranium province, an area that hosts several world class uranium deposits including Trekkopje and Rossing. The Marenica project has a large inferred uranium resource of 61 million pounds across two deposits, Marenica and MA7. Marenica recently commenced a drill program at its Mile 72 uranium project, which it acquired just last year and has since assessed the project’s exploration potential while obtaining government approvals to commence on-ground exploration. Multiple potential exploration targets have been identified and are being prioritised, including electromagnetic (EM) surveys to locate historic palaeochannels to assist in identifying drill targets. The company also added to its strategic landholding with the granting of exclusive prospecting licence (EPL) 6987, aka Koppies that covers part of the eastern extension of the Tumas palaeochannel, which hosts other uranium deposits, including the Tumas and Tubas uranium deposits owned by Deep Yellow (ASX: DYL). “Securing the Koppies license is an exciting and strategic development,” Marenica Energy managing director Murray Hill said. “The historical drilling results cover an area 1,000 metres in an east-west direction and 800 metres from north to south, providing Marenica with many significant drilling targets to pursue.”
WEB www.marenicaenergy.com.au EMAIL firstname.lastname@example.org WEB www.ardearesources.com.au
DIRECTORS Andrew Bantock, Nelson Chen, Murray Hill
DIRECTORS Katina Law, Ian Buchhorn, Wayne Bramwell
Heron Resources Limited
Salt Lake Potash Limited
Heron Resources’ primary focus is on the company’s 100 per centowned, high grade Woodlawn zinc-copper project located southwest of Sydney in New South Wales. Heron draws the point of difference for Woodland as it being one of the few new zinc projects that is fully funded to production. The Woodland project is scheduled to commence production in 2019, placing Heron nicely to participate in a pricing environment that is expected to be supported by a strong zinc physical market. As the Woodland mine moves closer to reality, Heron Resources is conducting a regional exploration program targeting base-metals. The program is combining all that modern exploration techniques have to offer, utilising the latest geophysical techniques with drilling to look for substantial large-scale volcanogenic massive sulphide (VMS) lenses close to the Woodlawn processing plant and facilities. “Our regional exploration program is focused on the area around the Woodlawn mine that has excellent potential to host additional base metals deposits,” Heron Resources managing director and CEO Wayne Taylor said “We have started with modern geophysical techniques that can see deeper and with higher resolution that historical methods, to look at a number of areas of interest which were identified from historic data.” Although EM surveys can directly identify massive sulphide lenses, IP surveys have greater depth penetration with good resolution and will map out the broader halo of mineralisation. As part of its regional exploration program, Heron will undertake IP testing over an area in a 2.5km arc to the NW and NE of the Woodlawn mine. Follow-up of any targets generated through analysis of the IP results will be tested through drilling and down-hole EM surveying.
Salt Lake Potash is focussed on the rapid development of the company’s Lake Way project in the Northern Goldfields Region of Western Australia. The Lake Way project is a high-grade salt-lake brine Sulphate of Potash (SOP) operation with location and logistical advantages that make it the ideal location for a SOP operation. Lake Way is located, less than 15 kilometres south of Wiluna with a surface area of over 270 square kilometres. The northern end of the Lake is largely covered by several Mining Leases held by Blackham Resources (ASX: BLK), the owner of the Wiluna gold mine. Salt Lake Potash has a Memorandum of Understanding with Blackham that allows for an expedited path to development at Lake Way. The estimated total Mineral Resource Estimate at Lake Way has now increased to 73 million tonnes of SOP calculated using Total Porosity and 8.2 million tonnes of SOP calculated using Drainable Porosity. The 73 million tonnes Initial Mineral Resource Estimate for the whole of Lake Way consists: »» Measured Resource — Lake Way Playa 6.9 million tonnes at 15.4 kilograms per cubic metre (kg/m3) »» Measured Resource — Williamson Pit 32,000 tonnes at 25.5kg/ m3 »» Indicated Resource — Paleochannel 3.7 million tonnes at 13.6kg/m3 »» Inferred Resource — Lake Way Playa & Paleovalley Sediment 62 million tonnes at 15.2kg/m3 “The Lake Way Mineral Resource Estimate for the ‘whole of lake” that confirms the significant size and very high-grade resource at Lake Way,” Salt Lake Potash CEO Tony Swiericzuk said. “It reinforces our current review process to consider a larger scale scenario at Lake Way and we anticipate releasing the technical results of the larger scale scenario towards the end of Q2 2019.”
EMAIL email@example.com WEB www.heronresources.com.au DIRECTORS Stephen Dennis, Wayne Taylor, Borden Putnam III, Fiona Roberston, Mark Sawyer, Ricardo De Armas, Peter Rozenauers, Ian Pattison
EMAIL firstname.lastname@example.org WEB www.saltlakepotash.com.au DIRECTORS Ian Middlemas, Tony Swiericzuk, Mark Pearce, Bryn Jones, Matthew Syme
BCI Minerals Limited (ASX: BCI) BCI Minerals’ 100 per cent-owned Mardie salt & potash project is located on the northwest coast of Western Australia in one of the world’s best locations for solar evaporation operations. BCI Minerals is looking to produce salt and sulphate of potash (SOP) from seawater to meet the growing Asian demand for salt and SOP that is being driven by the growth of the industrial and chemical industries, which is forecast to result in a supply gap emerging over the next decade. Having completed a positive Pre-Feasibility Study (PFS) in 2018, BCI recently appointed GR Engineering Services Limited as lead engineer for the Mardie salt & potash project Definitive Feasibility Study (DFS). “We are focused on delivering a high quality DFS that will place BCI in a strong position to reach a final investment decision by the first quarter of 2020,” BCI Minerals managing director Alwyn Vorster said. “GR Engineering’s technical ability and project management strengths will make them a valuable partner to BCI as Mardie is progressed towards full project construction.” As well as improving design accuracy and further de-risking the project, BCI expects the DFS to improve on the PFS development plan and business case in several key areas. This will involve increasing the production capacity at Mardie to four million tonnes per annum salt and 100,000 tonnes per annum SOP. The DFS will also examine approvals and designs for a fit-forpurpose export facility at the Mardie site, which will eliminate haulage costs to the Cape Preston East Port site. Further infrastructure work will entail establishing test ponds and completing construction of project support infrastructure to bring forward the target date for first salt and SOP production.
EMAIL email@example.com WEB www.bciminerals.com.au DIRECTORS Brian O’Donnell, Alwyn Vorster, Michael Blakiston, Jennifer Bloom
Cygnus Gold Limited (ASX: CY5) Cygnus Gold has a portfolio of 100 per cent-owned projects in the Wheatbelt region of Western Australia. The projects range in developmental stage from early exploration areas through to advanced, drill-ready targets where high-grade gold results were achieved in drilling by previous explorers. Recent activity has been happening within the Stanley project, with drilling targeting the Kepler Zone. Cygnus Gold identified the Kepler Zone via a detailed review of drillhole STRC0002, drilled in late 2018 that ended in mineralisation. Resampling of the original mineralised intercepts returning encouraging results. The Kepler Zone is adjacent to Cygnus’ shallow high-grade Bottleneck gold prospect and the drilling program will initially target a metadacitic rock unit that has only been lightly tested by deeper drilling at Bottleneck. The drilling is targeting extensions to the McDougall South prospect along the Stanley greenstone belt where drilling intersected gold mineralisation associated with a zone of anomalous gold within a structural zone along the central Stanley fold structure. “Our new understanding of the controls on gold mineralisation at Stanley has demonstrated a large, and previously unrecognised area of the prospective belt has never been drill tested,” Cygnus Gold managing director James Merrillees said “We’re also looking forward to further testing the encouraging early results from McDougall South.” In addition to its own projects, Cygnus is managing exploration on two earn-in agreements and two joint ventures with Gold Road Resources (ASX: GOR). The agreements cover Cygnus Gold’s Lake Grace and Wadderin projects and provide Gold Road with the opportunity to earn up to a 75 per cent interest in the 3,400 square kilometre area of Cygnus’ Wadderin and Lake Grace exploration projects by spending $3.7 million over four years.
EMAIL firstname.lastname@example.org WEB www.cygnusgold.com DIRECTORS Michael Bohm, James Merrillees, Simon Jackson, Dr Amanda Buckingham, Dr Oliver Kreuzer
Red 5 Limited
Cardinal Resources Limited
Red 5 has commenced bulk underground mining at the company’s King of the Hills (KOTH) gold mine, located in the Eastern Goldfields region of Western Australia. Red 5 anticipates bulk mining to deliver an increase in ore production together with improved operational efficiencies and lower operating costs at KOTH over the next 12 to 15 months. Red 5 ‘s mining team was encouraged by assay results it received from an ongoing underground diamond drill program at KOTH to expand the bulk stope designs within the existing Truck-to-Darlot mine plan. This was in addition to validating and upgrading the previously announced 1.88-million-ounce bulk mining Resource. This resulted in the delineation of new bulk stoping opportunities near the Lemonwood trail bulk stope, which was mined last year, delivering 31,778 tonnes at an average mined grade of 3.35 grams per tonne gold and the recently completed W4975 bulk stope, which delivered 19,989 tonnes at an average mined grade of 4.5g/t gold. The new selective bulk mining stopes are expected to underpin ore production from KOTH under Red 5’s current Truck-to-Darlot business model for at least the balance of FY19 and FY20, ensuring a strong production outlook for the mine while the company completes its current strategic review of a potential broader bulk mining opportunity. Other areas of the mine are generating additional bulk stoping opportunities at a grade appropriate for the Truckto-Darlot business, and the potential for additional bulk stopes at a lower cut-off grade feeding any future potential on-site mill forms part of the Resource and Reserve assessment currently underway. The recently mined and proposed new bulk open stopes are in the north-eastern sector of the mine, close to existing underground workings.
Cardinal Resources is a West Africa gold-focused exploration and development company with interests in tenements in Ghana. The company’s main focus is the development of its Namdini gold project where it is advancing a Feasibility Study. The Namdini project is located approximately 50 kilometres south-east of the regional town of Bolgatanga, the capital of the Bolgatanga Municipal District and Upper East Region of north Ghana and some 60km south of the Burkina Faso-Ghana border and 12km from Cardinal’s Ndongo East prospect. Namdini is situated within the Nangodi Greenstone Belt, one of a series of southwest-northeast trending granite-greenstone belts that host gold mineralisation in Ghana and Burkina Faso. Cardinal Resources recently updated the Proved and Probable Ore Reserve estimate for the Namdini project, taking it to 138.6 million tonnes at 1.13 grams per tonne (0.5g/t gold cut-off) for 5.1 million ounces of gold. Cardinal anticipates conventional open pit mining mining at Namdini that will utilise drill and blast as well as conventional load and haul operations. There is expected to be a limited amount of free-dig material with most of the material assumed to require drilling and blasting. Cardinal’s Resources chief executive officer/managing director Archie Koimtsidis said. “We are extremely pleased that our optimisation of pit designs, wall angles and mining schedules, has upgraded the company’s Life of Mine Ore Reserve position…reinforcing the Namdini gold deposit as of one of the largest undeveloped gold discoveries of the past decade. “It is anticipated that the First Stage Pit will see approximately one Million ounces of gold produced over an approximate three-year period. “We are confident this optimised Life of Mine Ore Reserve, can deliver strengthened financial results within the Feasibility Study.”
EMAIL email@example.com WEB www.red5limited.com DIRECTORS Kevin Dundo, Mark Williams, Ian Macpherson, John Colin Loosemore, Steve Tombs
EMAIL firstname.lastname@example.org WEB www.cardinalresources.com.au DIRECTORS Archie Koimtsidis, Kevin Tomlinson, Malik Easah, Dr Kenneth G. Thomas, Michele Muscillo, Trevor Schultz
Conference Commodities In The Spotlight commodity capers:
According to the nation’s chief economist the prices of Australia’s major resource commodities have hit seven-year highs. However, the news isn’t all good with prices most likely to drift lower due to less demand and growing supplies. The Roadhouse takes a quick look at what our number one bean counter has to say about the fortunes of some commodities in attendance at the RIU 2019 Sydney Resources Round-up. IRON ORE The chief anticipates the iron ore price averaging around US$67 a tonne in 2019, mainly due to the supply shock suffered from the aftermath of the Vale Brazilian dam collapse lifting prices in the first half of 2019. The impact of lower supply will be good for domestic producers, if the weather holds, and will be partly offset by weaker demand for seaborne iron ore, stemming from a slight decline in steel production in China. Stronger seasonal steel production should support high iron ore prices through the middle of 2019. Key risks to the outlook for the iron ore price include the trajectory of Chinese import demand, as well as a potentially larger than expected decline in Brazil’s production. URANIUM Uranium prices have been on the rise of late, increasing to an average of US$28.90 a pound in January, a healthy premium to its low point of US$18 a pound in November 2016. Most of the increase took place in the second half of 2018, but prices continued to lift in early 2019. “Very large inventories of uranium are still held around the world, and this is expected to act as a check on the recent price surge,” the chief said. “However, prices are still expected to rise slowly, as pressure on inventories builds over time. “A substantial number of projects were postponed or cancelled during the record run of low prices, which could lead to a prolonged supply crunch in the years to come.” GOLD Our economist indicates that gold prices are projected to rise by around 2.1 per cent in 2019, to an average US$1,326 an ounce (real terms). This is to be driven by higher investor demand for gold as a safe haven asset. Slower economic growth is forecast across all economies, both advanced and emerging. With further interest rate rises in the US either delayed or unnecessary, the greenback is likely to weaken modestly, removing a key hurdle to higher gold prices.
“Over the five-year outlook period, gold prices are projected to rise around 1.6 per cent a year (real terms), to US$1,428 an ounce in 2024, supported by slowing economic growth in some major economies, weakness in world equity markets, and declining mine supply after 2020,” the chierf said. COPPER Copper prices demonstrated signs of strength early in 2019, after a long period of decline during the latter half of 2018 due to US-China trade tensions producing a substantial fall in copper prices from a mid-year peak. Copper prices have not fallen much since July, but there hasn’t been any great recovery on the horizon. Prices at the end of 2018 were 15 per cent below the level at the start of the year, at just over US$6,000 these have lifted so far in 2019, but remain well below what market conditions would normally suggest. NICKEL Nickel prices fell below US$12,000 a tonne in the first quarter of 2019 after prices enjoyed strong demand in the first half of 2018, until the pesky US-China trade tensions reversed this strength in second half of the year, resulting in prices falling for six months in succession. “Nickel demand is expected to rise steadily over the outlook period, growing from 2.3 million tonnes in 2018 to 2.8 million tonnes by 2024,” the chief said. Nickel demand is expected to rise with electric vehicle production by 2022 once prices of electric vehicles start to come down and climate change-related incentives and penalties take hold around the world, causing an anticipated global electric vehicle uptake. LITHIUM Prices for lithium hydroxide peaked late 2018 before falling slightly due to global oversupply and a decline in prices in China. Lithium prices are projected to drop further as inventories continue to build, but the chief expects this will likely reverse in later years as inventories start contracting in the 2020s. “The removal of bottlenecks at the refining stage should start to improve market and price stability for lithium,” the chief said. “Lithium demand will be driven by electric vehicle sales, which are expected to keep rising as their prices approach those of petrol vehicles.”
Helix Resources Limited
ioneer is developing the company’s 100 per cent-owned Rhyolite Ridge lithium-boron project in Nevada, USA with the view to becoming a responsible and profitable producer of the materials necessary for a sustainable future. Lithium and boron are both used in a diverse range of everyday items and innovative technologies essential to emerging clean technologies such as electric vehicles. ioneer completed a Pre-Feasibility Study for Rhyolite Ridge in 2018 that confirmed the project’s strong potential to become a cost-competitive, major producer of lithium carbonate and boric acid. The Rhyolite Ridge Mineral Resource contains a total of 4.1 million tonnes of lithium carbonate and 10.9 million tonnes of boric acid. The company anticipates further drilling to increase this resource as the estimate is for less than 20 per cent of the area of its two prospective basins at Rhyolite Ridge. “The Rhyolite Ridge PFS demonstrated the project’s scale, long life and potential to become the lowest cost lithium producer in the world as well as the largest lithium producer in the United States,” ioneer managing director Bernard Rowe said. “Initial results from our 2018-19 drilling program have already indicated that cash flows in the first few years of mining are expected to be improved by increasing boron grades mined and lowering the strip ratio.” Now in the Definitive Study phase, ioneer has awarded an engineering and design contract to complete the sulphuric acid plant component. The acid plant will produce 3500 tonnes per day of sulphuric acid for the leach process and the steam/heat necessary for the process plant. Excess steam will be used to generate approximately 50 megawatts per annum of carbon-free electricity.
Helix Resources is the embodiment of how timing can play a large part in the success of an exploration company. The company’s main project is the 100 per cent-owned Collerina copper project, located in the Cobar-Girilambone district in Central New South Wales. Helix is not the first company to run the ruler over Collerina — the project was subject to small-scale mining in the early 1900s and the only modern exploration it had seen was conducted by CRA in the 1980s, and then only a three-hole drilling program was carried out. Surprisingly all three holes intersected copper mineralisation over varying widths, but were never followed-up, not until Helix came along in 2014 to claim discovery of a new Volcanic Massive Sulphide (VMS) system. Work undertaken since has progressed the Collerina copper deposit with reverse circulation (RC) and diamond drill (DDH) programs successfully testing to confirm the dip continuity around previously reported holes at the high-grade Central Zone. Results included: »» 2 metres at 5.1 per cent copper, 0.5 grams per tonne gold, 7g/t silver, 1.4 per cent zinc within 5m at 2.4 per cent copper, 0.3g/t gold, 3.5g/t silver and 0.6 per cent zinc from 327m; and »» 2m at 3 per cent copper, 0.2g/t gold, 3.8g/t silver within 5m at 1.8 per cent copper, 0.2g/t gold and 2g/t silver from 296m. These latest intercepts demonstrate that lateral continuity is present in the deeper parts of the high-grade Central Zone copper mineralisation. These additional results at depth confirm the continuity of strike and distribution of copper mineralisation, as observed near surface, continues down plunge of the deposit. Helix expects to release a maiden JORC resource for the Collerina deposit soon.
WEB www.ioneer.com EMAIL email@example.com WEB www.helix.net.au DIRECTORS Peter Lester, Michael Wilson, Jason Macdonald, Timothy Kennedy
DIRECTORS James D. Calaway, Bernard Rowe, Alan Davies, Patrick J. D. Elliott, John Hofmeister
Saturn Metals Limited
Piedmont Lithium Limited
Saturn Metals’ Apollo Hill project comprises 20 gold exploration and prospecting licenses covering approximately 1,065 square kilometres of ground and two mining leases. The project’s main asset is the 100 per cent-owned Apollo Hill Indicated and Inferred Mineral Resource of 20.7 million tonnes at 1 grams per tonne gold for 685,000 ounces of gold using a cut-off grade of 0.5g/t gold with the maximum depth of the resource at 180 metres below surface. Saturn Metals recently resumed drilling activities at the Apollo Hill project in the form of a three-hole, diamond drilling program that is planned to test for specific new styles of mineralisation and to provide material for metallurgical testing. The program will be funded in part by a Western Australian Government Exploration Incentive Scheme (EIS) grant. All drilling at Apollo Hill is part of Saturn’s efforts to rapidly grow the Apollo Hill project Mineral Resource. “We are pleased to be able to test a couple of new ideas with this drill program,” Saturn Metals managing director Ian Bamborough said “We have been planning on testing these positions for some time. “The diamond core will provide us with a wealth of information and help us to continually improve our targeting.” The diamond drilling follows positive results from the first reverse circulation (RC) drilling campaign undertaken at Apollo Hill that clearly defined the main extensional structures and trends within broader step-out mineralised intersections, extending the strike length of the main Apollo Hill system by 0.5 kilometres to 1.7km. “Moving forward, our planned drilling will continue to home in on these exciting trends as we continue towards our goal of rapidly growing our resource base in 2019,” Bamborough said.
New York-based Piedmont Lithium is kept extremely busy developing the company’s 100 per cent-owned Piedmont lithium project, located within the Carolina Tin-Spodumene Belt (TSB) of North Carolina in the United States. Piedmont Lithium is currently bang-on schedule to update the project Mineral Resource estimate and Scoping Study near mid-year and to receive required permits and regulatory approvals by year-end, all while completing a Definitive Feasibility Study (DFS) by the end of 2019. The company increased its overall land position by 15 per cent to 2,105 acres, taking its Core Property to 1,004 acres, an 86 per cent increase from the Core land position underlying the maiden Mineral Resource estimate. PFS-level metallurgical testwork evaluating Dense Medium Separation (DMS) technology remains ongoing after preliminary DMS results indicated potential to include DMS circuitry in the Piedmont concentrator’s design. Results of the testwork will be used to update the process design from the Scoping Study and to design a pilot program for later in 2019. Piedmont’s Phase 4 drill campaign continues with three rigs drilling, from which the company anticipates an initial Mineral Resource estimate on its Central Property in April 2019 and an update to the Mineral Resource estimate on the Core Property in June/July 2019. Piedmont has been engaged in preliminary offtake, financing and strategic conversations of late with interested parties of a global nature, including companies from the lithium, mining, chemicals, battery, automotive and private equity sectors. “As the only conventional lithium project in the USA, we have attracted considerable strategic interest and have engaged in initial conversations with parties in the lithium, mining, chemicals, battery, automotive, and private equity sectors,” Piedmont Lithium president and CEO Keith D. Phillips said.
EMAIL firstname.lastname@example.org WEB www.saturnmetals.com.au DIRECTORS Ian Bamborough, Rob Tyson, Andrew Venn
EMAIL email@example.com WEB www.piedmontlithium.com DIRECTORS Ian Middlemas, Keith D. Phillips, Anastasios Arima, Jeff Armstrong, Robert Behets, Jorge M. Beristain, Levi Mochkin
Mako Gold Limited (ASX: MKG)
Barra Resources Limited (ASX: BAR)
Mako Gold has two West African projects — the Napié project in Cote d’Ivoire and the Niou project in the Burkina Faso. Mako announced a gold discovery in January 2019 at the Niou project that is located within the Goren Greenstone Belt, in the central part of Burkina Faso. More recently the company reported assay results from 17-hole reverse circulation RC drilling program at the Napié project, where it is earning up to a 75 per cent interest under a farm-in and Joint Venture agreement with Occidental Gold SARL, a subsidiary of Perseus Mining. The drilling encountered multiple zones with encouraging widths and grades of gold mineralisation. Multiple wide gold zones including some high-grade intervals, were intersected on the Tchaga prospect with thick zones of gold mineralisation returned on several drilled sections along strike of the regional shear zone. Gold was also intersected in drill holes spanning multiple sections on the Gogbala prospect over a strike length of two kilometres, demonstrating the potential for large deposits. Mako is planning a follow-up drill program on the Tchaga and Gogbala prospects prior to the start of the wet season, which usually begins in July. The object of the follow-up drilling will be to extend strike and width directions of known mineralisation as well as testing new targets identified by Mako geologists. “We have now intersected these wide mineralised zones along significant strike lengths up to two kilometres parallel to the trend of the regional shear zone,” Mako Gold managing director Peter Ledwidge said. “This increases our confidence in the potential for the Napié project to host an economic gold deposit along the 23 kilometre-long gold geochemical anomaly.”.
Barra Resources is manager of the Mt Thirsty Joint Venture (MTJV) that covers the advanced Mt Thirsty, high-grade cobalt-nickel oxide deposit located north-northwest from Norseman in Western Australia. The project is jointly owned by Barra and Conico Limited and currently boasts a recently-upgraded Indicated and Inferred JORC 2012-compliant Mineral Resource of 25.1 million dry tonnes at 0.114 per cent cobalt and 0.52 per cent nickel. “This Mineral Resource together with the recent metallurgical results will form the basis of a new optimised mine plan for the PFS which is expected to unlock significant value for the project,” Barra Resources managing director Sean Gregory said. The MTJV has already identified additional cobalt-nickel mineralisation at Mt Thirsty North that is situated three kilometres the north of the project. This mineralisation has never been modelled for a Mineral Resource estimate and the MTJV has signalled its intentions to complete this work to provide additional mineralisation to potentially extend the mine plan. The 2019 Mineral Resource block model will be combined with metallurgical regressions from recent test work — during which average cobalt leach extraction improved to 85 per cent with some results as high as 88 per cent and average nickel leach extraction improved to 32 per cent with some results as high as 37 per cent — to be used in new mine planning and optimisation studies. Barra Resources expects this work will unlock further value for the project. Engineering of the processing plant, and capital and operating cost estimating to a PFS level of accuracy at optimised conditions is set to commence subject to funding approval by the MTJV.
EMAIL firstname.lastname@example.org WEB www.makogold.com.au
EMAIL email@example.com WEB www.barraresources.com.au
DIRECTORS Mark Elliott, Peter Ledwidge, Michele Muscillo
DIRECTORS Sean Gregory, Gary Berrell, Jon Young, Grant Mooney
King Island Scheelite Limited
Red Metal Limited
Red Metal inked a multi-project option and Joint Venture agreement with mining powerhouse OZ Minerals (ASX: OZL) aimed at fast-tracking the search for greenfield discoveries on the company’s Australian base metal exploration portfolio. The new Greenfields Discovery Alliance agreement gives OZ Minerals a two-year option to fund a series of mutually agreed, proofof-concept work programs on six of Red Metal’s early-stage projects: »» Yarrie for copper-gold and copper-cobalt in Western Australia; »» Nullarbor for copper-gold and copper-nickel in WA; »» Gulf for copper-gold in Queensland; »» Three Ways for zinc-lead-silver in QLD; »» Lawn Hill for zinc-lead-silver in QLD; and »» Mount Skipper for zinc-lead silver in QLD. OZ is committed to spend a minimum amount on each project within the two-year period, for a total outlay of $8.05 million. After completing the minimum expenditure on a project, OZ has the option to form a JV over that project whereby it can earn 51 per cent by spending the designated Earn-In Amount on exploration within the designated Earn-In Period. Red Metal will manage exploration to the end of the Earn-in Period. Red Metal believes the Greenfields Discovery Alliance deal sets a new standard for collaboration of a major Australian mining group with an, ASX-listed, junior exploration company. Red Metal considers the Earn-In Amounts for each project sufficient to clearly outline any potential ore discoveries before the company must elect whether or not to contribute. Under the terms of the agreement OZ Minerals will make an initial cash payment to Red Metal of $1.8 million being $300,000 for each of the six nominated projects. Exploration under the alliance was expected to kick off early in the 2019 field season.
King Island Scheelite is focused on the redevelopment of the company’s 100 per cent-owned Dolphin tungsten project on King Island, Tasmania. The Dolphin tungsten project has JORC 2012-compliant Mineral Reserves of 3.14 million tonnes at 0.73 per cent tungsten oxide. Mineral Resources, including the Mineral Reserves, total 9.6 million tonnes at 0.9 per cent tungsten oxide. Recently the KIS Group signed an Off-take Agreement for tungsten concentrate with Wolfram Bergbau und Hutten AG, a wholly owned subsidiary of Sandvik AB for delivery of 140,000 metric tonne units (mtu) or 1,400 tonnes of tungsten oxide, over a four-year period. This equates to the export of approximately 2,200 tonnes of concentrate, produced by the redeveloped Dolphin mine over that period. The Wolfram Agreement is subject to King Island achieving certain financial and operational milestones leading up to 31 March 2021, including groundworks after placement of orders for longer lead time items, commencement of dry commissioning, and completion of ramp up. At full production, the redeveloped Dolphin mine is expected to produce approximately 2,000 tonnes of tungsten oxide per annum, contained in 3,100 tonnes of concentrate. The Wolfram Agreement therefore represents approximately 20 per cent of its annual production. “It is extremely pleasing to have attracted the internationally renowned Wolfram Group as our first customer, in what is a highly competitive market,” King Island Scheelite chairman Johann Jacobs said. The company has negotiations with other international APT producers at an advanced stage for the balance of the annual production. APT — Ammonium Paratungstate — is an intermediate product, containing 88.5 per cent tungsten oxide. Currently the APT price is in the range US$265 to US$285 per mtu.
EMAIL firstname.lastname@example.org WEB www.kingislandscheelite.com.au
EMAIL email@example.com WEB www.redmetal.com.au DIRECTORS Russell Barwick, Robert Rutherford, Joshua Pitt
DIRECTORS Johan Jacobs, Chris Ellis, Greg Hancock
De Grey Mining Limited (ASX: DEG) De Grey Mining is running an exploration program focused on the upgrade and expansion of known resources, as well as in the discovery of new deposits at the company’s Pilbara gold project south of Port Hedland in the Pilbara Region of Western Australia. De Grey Mining believes in the potential of the Pilbara gold project to define additional resource ounces along the existing 200 kilometres strike length of mineralised shears zones, throughout the 1,500 square kilometre landholding. Exploration carried out by De Grey to date has entailed detailed shallow RC and diamond drilling of approximately 10 per cent of the shear zones around 100m to 150m, from which the company has identified approximately 1.4 million ounces of gold resources. The largest deposit within the project are is the 6.37 million tonnes at 1.8 grams per tonne gold for 377,300 ounces Withnell deposit. Recent drilling at Withnell continued to enhance its resource potential, returning: »» LODE 1 (West) 8 metres at 20.11 grams per tonne gold from 168m, including 4m at 38.5g/t gold; »» LODE 1 (East) 5.47m at 4.57g/t gold from 293m; »» LODE 2 16m at 4.21g/t gold from 94m, including 1m at 29.3g/t gold; and »» LODE 4m at 16.4g/t gold from 240m. De Grey considers Withnell, along with the Toweranna and Wingina deposits to have potential to increase underground resources to positively impact the expanded 2 million tonnes per annum Pre-Feasibility Study (PFS) currently underway. The company plans to drill at Withnell and Toweranna throughout the first half of 2019, focusing on new resource extensions with the aim to define a minimum of two-million-ounce gold resources by the end of 2019.
EMAIL firstname.lastname@example.org WEB www.degreymining.com.au DIRECTORS Simon Lill, Andy Beckwith, Brett Lambert, Peter Hood, Steve Morris
Kairos Minerals Limited (ASX: KAI) Kairos Minerals has two exploration hubs in the Pilbara and Eastern Goldfields mineral districts of Western Australia. In the Pilbara, Kairos Minerals’ 100 per cent-owned Pilbara gold project includes a recently upgraded Mineral Resource across three deposits, south-east of Port Hedland. The Resource consists of: Indicated Resource of 6.8 million tonnes at 1.3 grams per tonne gold for 285,000 ounces; Inferred Resource of 7.6 million tonnes at 1.47g/t for 358,000 ounces; for a Total Resource of 14.4 million tonnes at 1.39g/t for 643,000 ounces. The bulk of this Resource, around 486,000 ounces, is contained within the Mt York deposit, where Kairos has drilling programs underway to expand the Resource inventory. The Pilbara gold project also includes strategically located tenure across the East and Central Pilbara the company considers highly prospective for conglomerate-hosted gold discoveries. Kairos has recently focused on conglomerate gold exploration at the Croydon project, located within the central part of the Pilbara gold project just 100 kilometres to the west of Mt York. Kairos completed a helicopter-borne exploration program along a 22km long corridor within the Croydon project with follow-up reconnaissance collecting a total of 447 gold nuggets for over 30.3 ounces of gold from six newly-discovered patches. The company believes these nugget patches highlight the potential for major mineralisation. “As a result of these stream sediment results and the mapping we have completed in recent months, we now have a much clearer picture of where to look for potential large accumulations of gold mineralisation,” Kairos Minerals executive chairman Terry Topping said. “We are currently putting this information together…and we will be resuming exploration in the Pilbara as soon as seasonal conditions permit.”
EMAIL email@example.com WEB www.kairosminerals.com.au DIRECTORS Terry Topping, Neil Hutchison, Bruno Seneque
FYI Resources Limited (ASX: FYI) FYI Resources aspires to be a producer of high purity alumina (4N or HPA) to meet the rapidly developing high-tech product market at the company’s Cadoux kaolin project in Western Australia. High-purity alumina (HPA) is a processed premium non-metallurgical alumina product characterised by its purity level — i.e. 99.99 per cent (4N), 99.999 per cent (5N). 4N HPA is a high-value product with many broad traditional applications and is increasingly becoming a critical component in the electric vehicle, battery and power storage markets. 5N is a sub-set of the HPA sector with smaller market applications that attracts a significant premium in pricing over 4N due to its use in very complex applications. As a component of ongoing Bankable Feasibility Study (BFS) test work and Locked Cycle testing, FYI recently produced an outstanding product grade of 99.999 per cent (5N) alumina. The test work was designed to provide data and information from the moderate temperature, atmospheric pressure HCl flowsheet process FYI has developed. FYI explained the results of the laboratory-based test, work as a ‘replication’ of its full scale (production sized) process design. “Achieving 99.999 per cent or 5N HPA is an extremely encouraging result,” FYI Resources managing director Roland Hill said. “Not only is it an incredible outcome to attain this level of purity, it also has a potentially profound impact on the overall project economics. “Whilst focusing on the 4N as the predominant HPA market segment, FYI sought to produce 5N HPA to demonstrate the flowsheet effectiveness, as well as to develop an additional product line that could supply a market that displays forecasted long-term growth at a significant premium to the 4N market.”
EMAIL firstname.lastname@example.org WEB www.fyiresources.com.au DIRECTORS Edmund Babington, Roland Hill, David Sargeant, Adrian Jessup
Ausgold Limited (ASX: AUC) Ausgold has a portfolio of quality gold projects spread across highly-prospective Australian minerals provinces. The company’s main project is its 100 per cent-owned Katanning gold project (KGP), located in one of the country’s underexplored greenstone belts, near Katanning in Western Australia. Recent RC drilling at Jinkas South intersected high-grade gold mineralisation, further extending the identified zone of high-grade mineralisation over a strike length of 350 metres. This high-grade mineralisation remains open along strike making it an attractive target with the potential to add to the 1.04 million ounces Ausgold has already identified at the KGP. Drilling is currently underway at the KGP with a program of EIS co-funded RC and diamond drilling testing near Resource targets at Jinkas South, Jackson and Lukin South. Although development of the Katanning gold project is Ausgold’s featured priority, the company has three other exploration projects in development, located elsewhere in WA and Queensland. The WA projects include the 100 per cent-owned, 176 square kilometre Doolgunna Station that hosts copper-gold Volcanic Hosted Massive Sulphide (VHMS) targets in the Narracoota Volcanics west along strike from the Degrussa deposit of Sandfire Resources (ASX: SFR). Still in WA is the 100 per cent-owned, 300sqkm Yamarna project, situated on prospective ground within the Yamarna greenstone belt. Limited drilling undertaken by Ausgold to date has already identified nickel-copper-cobalt mineralisation and several untested VTEM anomalies exist. On the eastern seaboard, the company is based in Queensland where it has the 100 per cent-owned 200sqkm Cracow project, located over the Camboon Volcanics with associated native copper. Rock chip samples taken at Cracow have returned grades up to 1.8 per cent copper and 5.5 grams per tonne silver north of Evolution Mining’s (ASX: EVN) Cracow deposit.
EMAIL email@example.com WEB www.ausgoldlimited.com DIRECTORS Richard Lockwood, Denis Rakich, Neil Fearis, Geoffrey Jones
Calidus Resources Limited
Black Cat Syndicate Limited
Calidus Resources’ 100 per cent-owned Warrawoona gold project is in the East Pilbara district of the Pilbara Goldfield of Western Australia. Calidus has kicked off a regional exploration drilling campaign at the Warrawoona gold project to test several of the large, highly prospective anomalies it identified from a recently-completed soil sampling program. The exploration campaign is part of Calidus’ strategy to grow the recently-updated Resource at Warrawoona, where a pre-feasibility study is well advanced. “The Warrawoona region remains essentially unexplored outside of the immediate Klondyke resource area and we believe that it is highly prospective for large mineralised orogenic gold systems,” Calidus Resources managing director Dave Reeves said. “The multiple, large-gold anomalies are compelling, and we look forward to seeing the results of our systematic and accelerated approach to exploration. “With drilling now underway and the pre-feasibility study hitting its strides, we are entering a busy and exciting period for the company.” The Mineral Resource was upgraded in February with a high conversion to the Indicated category. The Warrawoona gold project’s total JORC 2012-compliant Mineral Resource (Measured, Indicated and Inferred) now stands at: 21.2 million tonnes at 1.83 grams per tonne gold for 1.25 million ounces. The Mineral Resource contains a high-grade component estimated to contain: 14.6 million tonnes at 2.37g/t gold for 1.1 million ounces. “To effectively triple our high-grade resource base to 1.25 million ounces within 18 months of listing highlights the unique attributes of the major gold system at Warrawoona,” Reeves said. “The updated resource will underpin the pre-feasibility study that is due for completion in Q3-CY2019 and the subsequent bankable study as we continue our strategy of becoming a low risk, near term gold producer.”
Black Cat Syndicate is the 100 per cent owner of approximately 84 square kilometres of the Bulong gold project, located outside of Kalgoorlie in Western Australia. The company has 89 per cent of the tenements within the Bulong Gold Fields granted that are accessible by sealed road and have a history of small scale, high-grade production of around 152,000 ounces of gold. The main areas of activity within the project for Black Cat are the Myhree-Boundary (6km long), Queen Margaret (6km long) and Trump Corridors (5km long) that run in parallel along the length of Bulong with a combined length of 17 kilometres. The corridors form a north-south trending package of conglomeritic sediments with mineralised porphyritic units, sandwiched between ultramafic units and sit between large faults interpreted as splays off the Hampton and Bulong Faults. In February, Black Cat announced a maiden JORC 2012 Mineral Resource Estimate at Bulong totalling 1.4 million tonnes at 2.5 grams per tonne gold for 109,000 ounces. These Resources are located on 2.4kms of the Myhree–Boundary, Trump and Queen Margaret Corridors represents only 14 per cent of the interpreted extent of the underexplored three corridors. Recent extensional drilling at Myhree returned the deepest mineralisation encountered to date sitting outside the deposit’s current Resource of 486,000 tonnes at 3.2g/t gold for 50,000 ounces. These latest intersections demonstrate capacity to grow Myhree with best results including: »» 19MYRC001 7m at 4.25g/t gold from 152m; and »» 19MYRC001 2m at 4.75g/t gold from 170m. Black Cat identified potential to grow Resources by increasing the mineralised strike at Boundary a further 50m to over 600m and at Trump by 100m to over 400m. Black Cat aims to substantially increase Resources during 2019.
EMAIL firstname.lastname@example.org WEB www.calidus.com.au DIRECTORS Mark Connelly, Keith Coughlan, David Reeves, Adam Miethke
EMAIL email@example.com WEB www.blackcatsyndicate.com.au DIRECTORS Paul Chapman, Gareth Solly, Les Davis, Alex Hewlett
Technology Metals Australia Limited (ASX: TMT)
Exore Resources Limited (ASX: ERX) Exore Resources has made rapid progress at the company in the six months since acquiring its Cote d’Ivoire projects. Exore recently claimed a new gold discovery within the Bagoe project at the Veronique prospect where a program of AC drilling identified identifying widespread in-situ gold mineralisation. Shallow intersections from the broad spaced AC drilling include: »» 12m at 3.63 grams per tonne gold from 4m, including 4m at 10.12g/t gold from 8m; »» 4m at 7.58g/t gold from 20m; »» 4m at 4.45g/t gold from 12m; »» 4m at 3.31 g/t gold from 16m; and »» 8m at 2.71g/t gold from 0m. “Every target we have drilled has returned exceptional results,” Exore Resources managing director Justin Tremain said. “We are extremely excited by the results from the first ever drilling at Veronique which confirm the potential for a significant new gold discovery and is a significant to step to achieving our objective of defining a multi-million-ounce gold project. “The scale of Veronique is hugely exciting with over 80 per cent of the prospect still untested.” The Veronique discovery followed further encouraging drilling results from Bagoe, this time from a maiden reverse circulation (RC) drilling program carried out on the Antoinette prospect. The drilling hit its objective to test for mineralisation from surface within the top 150m and continuity of high-grade mineralisation to the south. “The RC drilling results we are seeing from Antoinette Central continue to reinforce our view that this is shaping up to be a very exciting, high-grade gold discovery,” Tremain said. “RC and AC rigs are continuing to operate at Veronique and stepping out in Antoinette region to begin testing some of our many targets within the Bagoe project.”
EMAIL firstname.lastname@example.org WEB www.exoreresources.com.au DIRECTORS Justin Tremain, Dr Francis Wedin, John Fitzgerald
Technology Metals Australia’s Gabanintha vanadium project is located over six granted tenements south of Meekatharra in Western Australia. The project contains a 5.5-kilometre strike length of high-grade mineralised gabbro and is claimed by the company to be one of the highest-grade vanadium deposits in the world. Technology Metals recently reported a JORC Code 2012-compliant update of the project’s Northern Block Mineral Resource estimate and resulting Global Mineral Resource estimate. The updated Northern Block Mineral Resource estimate includes a Measured and Indicated Mineral Resource of 30 million tonnes at 0.9 per cent vanadium oxode (V2O5) and 11 per cent titanium dioxide (TiO2). The estimate incorporates a maiden Measured Mineral Resource estimate for the project’s North Pit area. The upgrade has taken the Global Resource estimate for the project to 131 million tonnes at 0.9 per cent V2O5 and 10.1 per cent TiO2 that includes an high-grade component of 71.2 million tonnes at 1.1 per cent V2O5 and 12.7 per cdent TiO2 contained within a highly continuous and consistently mineralised massive magnetite zone. The modelled mineralisation was defined based on the RC and diamond drilling data, surface mapping and magnetic modelling. “The significant increase to the Indicated Resource, a key component to support a material extension to the project mine life, and the substantial increase to the high-grade portion of the Resource, provides an indication of the potential very long tenor of this high quality globally significant vanadium project,” Technology Metals Australia managing director Ian Prentice said. TMT expects the updated Mineral Resource estimate and results from geotechnical diamond drilling, completed as part of the resource infill and extension program, will be incorporated into mining studies to be undertaken as part of the DFS.
EMAIL email@example.com WEB www.tmtlimited.com.au DIRECTORS Michael Fry, Ian Prentice, Sonu Cheema
Metro Mining Limited
Magnetic Resources NL
Metro Mining’s project portfolio includes the Bauxite Hills mine, north of Weipa on Western Cape York and a four billion tonne thermal coal resource in Queensland’s Surat Basin that is one of Australia’s largest. The company’s attention is mostly on its Bauxite Hills where a 1900 square kilometre tenement package hosts an estimated ore Reserve of 92.2 million tonnes and total Resources of 144.8 million tonnes of bauxite. Metro commenced mining operations in April 2018 and in its first year of operations, achieved its 2018 production guidance at a canter, shipping two million tonnes of its product to five different Chinese companies. For the December 2018 quarter, Metro Mining produced bauxite sales of 743,000 wet metric tonnes (WMT), bringing its total for 2018 to 2.037 million tonnes, sitting well within its guidance range of 1.95 to 2.075 million tonnes. With the operation running smoothly, yielding a solid first year operational performance and strong market demand, Metro committed to an expansion to 3.5 million tonnes for 2019. The company has a Definitive Feasibility Study (DFS) underway with aspirations of lifting production rates to six million tonnes per annum by 2021. Metro Mining’s ambitions are helped by declining reserves and environmentally motivated mine closures in China, which has led to increasing demand for bauxite imports. Chinese imports increased by an average 25 per cent per annum over the past two years reaching approx. 80 million tonnes in 2018. Analysts predict these could grow to 130 to 150 million tonnes by 2025. Metro Mining is well placed with production growth, an accepted product with established customers and a location in a low sovereign risk jurisdiction, close to China.
Magnetic Resources believes the Leonora-Laverton district of Western Australia to be well-endowed with large world class gold deposits. The company supported that thesis with a regional study that identified three areas considered to have the potential to host large scale deposits. Recent work at one of these areas, Hawks Nest 9 (HN9) entailing a 53-hole RC drill program has teken it to ne a 2.1-kilometre-long sheared gold-rich porphyry that remains open to the north, south, east and at depth. The drilling took Magnetic’s efforts at HN9 to 93 RC drillholes, which add to 64 historical RAB/RC drillholes for a total of 157 shallow holes, which average only 40m in depth. The on-going work has grown the HN9 gold target to 2.1km and Magnetic expects this to get larger as the number of shallow gold intersections increases. To date the has been 113 intersections greater than 0.5 grams per tonne gold recorded at HN9, which includes 54 intersections greater than 1g/t, 24 intersections greater than 2g/t, 13 intersections greater than 3g/t and four intersections greater than 4g/t, which are all within the first 50m of the surface. The company considers the shallow dipping extensive zones at HN9 a potential indicator for deeper mineralisation, based on nearby large deposits in the region that have persistent internal shallowdipping mineralised lodes. “The HN9 project…is shaping up and has potential for a large-scale shallow deposit based on the 2.1km mineralised shear zone and the open down dip gold mineralisation,” Magnetic Resources managing director George Sakalidis said. “Future deeper drilling will be guided by the outline of the extensive near surface results, also, 496 one metre gold splits are being taken over the promising four metre composites completed.”
EMAIL firstname.lastname@example.org WEB www.metromining.com.au DIRECTORS Stephen Everett, Simon Finnis, Mark Sawyer, Fiona Murdoch, Philip Hennessy
EMAIL email@example.com WEB www.magres.com.au DIRECTORS Eric Lim, George Sakalidis, Julien Sanderson
Spectrum Metals Limited (ASX: SPX) Spectrum Metals has three gold projects within Western Australia. Most recent activity has centred around the Penny West gold project, located south of the Youanmi mining centre in Western Australia. Recent drilling below the open pit at the Penny West deposit returned assay results from eight holes that encountered high-grade gold intercepts, including: SPWRC006 5 metres at 28.9 grams per tonne gold from 203m, including 1m at 103g/t gold from 203m, within 31m at 5.5g/t gold from 203m. Describing the intersection as being “unusually thick” Spectrum believes it may represent a new zone of structural thickening to the south and at depth and generated a large new target for further drilling. “This is another incredible intersection for Spectrum and once again clearly demonstrates the capacity of the Penny West gold system to deliver significant gold mineralisation,” Spectrum Metals managing director Paul Adams said. Spectrum is currently designing a program of RC and diamond holes to follow up the intersection in addition to holes that are still to be drilled under the northern end of the pit. Drilling of three holes at the Penny North lode, also returned positive results, including: »» SPWRC022 4m at 105.2g/t gold from 151m, including 1m at 292.8g/t gold from 153m; »» SPWRC001 2m at 19.7g/t gold from 115m; and »» SPWRC021 1m at 10.8g/t gold from 154m. These results added another high-grade section line to the south in the Penny North lode and increased the company’s knowledge of the continuity of the high-grade mineralisation around the initial discovery. “At this location, the lode is exhibiting a very strong tenor and builds on our knowledge base of the distribution of high-grade within the lode structure,” Adams said.
EMAIL firstname.lastname@example.org WEB www.spectrummetals.com.au DIRECTORS Alexander Hewlett, Nader El Sayed, Paul Adams, James Croser
Hillgrove Resources Limited (ASX: HGO) Hillgrove Resources is focused on developing the company’s Kanmantoo copper mine and associated regional exploration targets, located just outside Adelaide in South Australia. Hillgrove Resources’ stated goal is to become a mid-tier gold and copper/gold resources group and it considers the Kanmantoo copper mine the ideal asset to achieve that aim. Kanmantoo is a copper and gold producer around a medium grade orebody with potential for further expansion. The project’s location, of 55 kilometres from Adelaide means it boasts capital cost advantages from being close to road, rail, power infrastructure and Port Adelaide. The project is able to use recycled water and grid power, providing it with further operating cost advantages that are supplemented by the project’s desirability as an employment destination being located both close to Adelaide and within the attractive Adelaide Hills’ setting. Resource drilling carried out by Hillgrove defined a Mineral Resource Estimation in 2016 for the Kanmantoo cooper mine of 34.5 million tonnes at grades of 0.6 per cent copper, 0.1 grams per tonne gold and 1.2g/t silver using a cut-off grade of 0.2 per cent copper. The Kanmantoo processing plant was commissioned and started production in November 2011. Initially configured to be a 2.4 million tonnes per annum open cut mine to support an initial mine life of 6.5 years, the project’s life of mine increased to some ten years and increased to over 2. Million tonnes per annum throughput following work on the crusher circuit. The project is expected to produce approximately 100,000 tonnes of concentrate, containing up to 20,000 tonnes of copper in concentrate and associated gold and silver per annum over the current life of mine.
EMAIL www.hillgroveresources.com.au WEB www.hillgroveresources.com.au
DIRECTORS John Gooding, Steven McClare, Maurice Loomes, Philip Baker, Antony Breuer
Gold Road Resources Limited
Kingston Resources Limited
Gold Road Resources will soon become an Australian gold producer with the Gruyer gold project soon to come on stream. The Gruyere Joint Venture is a 50:50 JV between Gold Road and Gruyere Mining Company Pty Ltd, a member of the Gold Fields Limited group. In the run-up to first gold — on schedule for the June quarter this year — Gold Road released a 2019 production guidance update for the project. Gruyere is expected to hit commercial production during the second half of 2019, ramping up to full nameplate capacity within six to seven months of first gold. Gold production for calendar year 2019 is estimated between 100,000 and 120,000 ounces with Gold Road’s share of guided production estimated at 50,000 to 60,000 ounces. Once commercial production is declared, all-in sustaining costs for the remainder of 2019 are expected to be between $1,050 and $1,150 as production ramps up to full nameplate capacity. The final forecast capital cost estimate remains at $621 million, from which Gold Road anticipates funding a total share $284 million. As of 31 December 2018, Gold Road’s remaining share of capital development costs was approximately $40 million. The company’s remaining share of JV management costs is approximately $10 million. At February 2019 the Gruyere JV had mined 185,000 tonnes of ore contributing to a planned substantial stockpile of ore in preparation for initial production to facilitate a smooth ramp up during 2019. “It is good to see the Gruyere project develop from conceptual plans through Feasibility Study to a well-designed large scale, long-life, low-cost operation that is on the threshold of delivering substantial value for our shareholders,” Gold Road chairman Tim Netscher said.
Kingston Resources is developing two gold projects, the Misima gold project in Papua New Guinea, and the Livingstone gold project in Australia. The company’s most recent action has been at the Misima project where drilling results earlier this year confirmed thick gold zones beneath the old Misima pit. This was followed up with results of a LiDAR (Light Detection and Ranging) survey that confirmed the location of a large stockpile of gold mineralised material at the Misima project. According to Kingston, this near-surface stockpile is not accounted for in the project’s current 2.8-million-ounce gold resource. The survey provided a detailed model of the surface terrain. which assisted the company in identifying historical mining topography, current and historic artisanal mining, as well as identifying potential geological features and determining water drainage patterns. The information will also be used to enhance the company’s future broader drilling and exploration programs. “The access to a potential low-cost feed source provides a real boost to the company’s ambitions to advance the Misima gold project,” Kingston Resources managing director Andrew Corbett said. “The potential at Misima has certainly evolved over the last year, with the exploration upside becoming clearer as work advances.” In August 2018, Kingston completed its earn-in to 70 per cent of the Misima project, and has since funded 100 per cent of Joint Venture exploration activity that should increase Kingston’s interest. Based on its current estimate of expenditure to 31 March 2019, Kingston expects its interest in the Misima gold project to reach approximately 75 per cent. “We wish to thank our JV partner, Pan Pacific Copper, for its ongoing support of Kingston and interest in the project,” Corbett said.
EMAIL email@example.com WEB www.goldroad.com.au
EMAIL firstname.lastname@example.org WEB www.kingstonresources.com.au
DIRECTORS Tim Netscher, Duncan Gibbs, Justin Osborne, Brian Levet, Sharon Warburton, Carol Marinkovich
DIRECTORS Anthony Wehby, Andrew Corbett, Mick Wilkes, Andrew Paterson, Stuart Rechner
One Final Thought From Sean Russo Are we living through the dying days of the single asset mining company?
There is no doubt the majority of long only equity funds and bank lenders have lost interest in helping successful explorers transition to mining. The reality for these professional providers of capital, having been in the game for several cycles, is they look into their portfolios and see previously supported assets that haven’t delivered the expected returns, making it almost impossible to make a case to sponsor new players onto the field. That’s not to say debt and equity can’t be found at present. Debt is plentiful because there is a relatively new crop of debt-funds actively lending to the sector. Ironically, the real driver for their existence is not due to any greatly improved current fundamentals, it is borne out of the exceedingly low interest rate environment delivered by Central Bankers globally. Managers of pension funds and endowments, hungry for yield and promised high returns by mining debt funds, are running headlong into markets they previously eschewed. Equity of sorts is also available from royalties and streams that are often dressed up to look debt-like, but I’m never convinced that selling a share of future production for up-front cash isn’t closely related to diluting existing shareholders through equity issuance. The only difference is when you see the true cost of that money raised. Shareholders need to understand that while sharing future output, they retain all the burden of future costs of production creating other future risks if commodity prices rise as fast as input costs. Debt Funds and Royalty/Streamers have a valuable role to play in a healthy funding ecosystem. For it to be truly healthy, with sensible risk/reward balances, we need to see more genuine equity in the mix. After 35 years being involved in the early life-cycle of single asset miners, I suggest this current phase is ultimately going to turn out to be a near-death experience. With glorious hindsight many will likely quote Mark Twain and his famous line about rumours of his death being greatly exaggerated. In the interim however, as we grind out the cycle, low investors and managers may feel more like Monty Python’s Black Knight. The cycle will eventually turn for commodities. Prices will rise across the board, probably as prices of general equities fall.
In such a scenario, investors who vowed to never again venture into junior explorer/developers will again chase stories (as we are seeing in the debt space now). The longer this phase goes on, we see the larger the new crop of investors emerge that have never seen the devastation wrought by the drip dilution required to fund the often extraordinary general/administrative overheads of junior explorer/developers waiting for the cycle to turn and trying to look busy in the meantime. There will be another boom. There is no doubt in my mind that in that next boom single asset companies will again be able to raise equity to comfortably fund average projects that will probably make some share punters and management wealthy, but also probably create another generation of mines that never really deliver on their promise. What’s the opportunity right now? Existing miners with strong cash flows, but perhaps more importantly, with a very realistic understanding of what works today, are obvious players to step up and provide equity to better-looking advanced stage projects. Whether that’s in the form of cornerstone investments and intellectual input (think Northern Star into Echo and Venturex), buying direct stakes in projects (Goldfields and Gold Road) or outright takeovers (Ramelius and Explaurum). If you believe commodities are destined for better days, and I do, the best place to invest today for substantial potential returns with a higher risk profile is to go shopping where existing successful miners are investing their own shareholder’s money. At this point in the cycle, bringing mining insights and disciplines and cash is much more valuable to the balance of the shareholders in want-to-be producers, than expensive debt and streams. It might take longer to realise a return, or to do your dough (that’s always a possibility in the junior mining space) but the risk of ruin is greatly reduced, buying more time. The other obvious, lower risk alternative is to invest in established miners actively positioning themselves to be part of, or ultimately the whole solution, for undervalued development opportunities. They have the luxury of solid cashflows in the interim should these markets stay irrational long enough to make life even more difficult for over-geared and underhedged single asset miners.
Sean Russo is principal with Noah’s Rule www.noahsrule.com.au
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The first ever official conference companion for the RIU Sydney Resources Round-up, including in-depth articles on some of the best untold s...
Published on May 3, 2019
The first ever official conference companion for the RIU Sydney Resources Round-up, including in-depth articles on some of the best untold s...