Morning News Bites – April 23

Industry news headlines to know for April 23 2020

  • Evolution Mining releases March quarterly with a 10% increase quarter on quarter to mine operating cash flow and no material impact from Covid-19 at this point https://www.asx.com.au/asxpdf/20200423/pdf/44h5jctxrhjqbn.pdf 
  • Drive through Covid-19 testing of 3000 Mineral Resources employees to days before heading to site set to become a policy at Mineral Resources. The testing will take place at two Perth locations
  • Galileo doubles drilling program for Fraser Range Project to begin tomorrow
  • The offer consideration for Ramelius Resources to take over Spectrum Metals has been declared final. Ramelius has a 77.48% share in Spectrum
  • The proposed acquisition of Broadspectrum by Ventia will not be opposed by the ACCC

Morning News Bites – April 21

Headlines you need to know – April 21 2020

 

 

 

 

 

 

 

 

Morning News Bites – Monday April 20

Welcome to a new daily update of information you should know!

Beacon Minerals Reveals Positive Panther Intercepts And International Prospects

The Panther prospect for Beacon Minerals has delivered some very positive results at shallow depth after results were revealed to the market.

Some highlights of the program included:

  • PBRC070 13 metres @ 16.4g/t Au from 9 metres including 1 metre @ 195g/t Au from 13 metres
  • PBRC071 11 metres @ 7.1g/t Au from 7 metres including 1 metre @ 53.5g/t Au from 7 metres
  • PBRC080 2 metres @ 32.5g/t Au from 40 metres including 1 metre @ 58.8g/t Au from 40 metres
  • PBRC081 3 metres @ 26.8g/t Au from 45 metres including 1 metre @ 69.0g/t Au from 45 metres

Beacon Minerals has also announced it has applied for two prospecting licenses in Timor-Leste covering an area of 12842 ha. Beacon has committed to a staged exploration program in Timor Leste subject to

  • Enactment of a Mining Code and granting of prospecting license
  • Potential participation by the Government on a basis to be agreed

In other news relating to Timor Leste, The Timor Leste Ambassador to Australia Mrs Ines Almeida and staff; and Mr Gualdino da Silva President of Autoridade Nacional do Petroleo e Minerais (ANPM) and staff managed to visit Beacon’s Jaurdi project recently.  Beacon has applied to be a sponsor for the 407 Training visa. This would allow for overseas candidates to stay in Australia for up to two years to complete work place based training to improve skills. The longterm intent is to enter into a training partnership with ANPM.

“Beacon is pleased with the steady production at Jaurdi Gold Project. We continue to review different options to reduce costs and take advantage of the increasing gold price. The on‐going COVID‐19 is monitored closely by Beacon and we have in place policies and procedures to ensure the safety of the staff, consultants and the wider community. “The Company’s continues to maintain its exploration activities with the on‐going exploration program at Panther and the review of additional exploration programs that we believe will add shareholder value. The Board would like to thank Mr Gualdino Da Silva, Mrs Ines Almeldia and their staff for visiting Jaurdi, showcasing Beacon’s ability to create value in a short period of time.”

The Jaurdi Gold Project produced 6905oz of gold for the March 2020 quarter with gold sales of 5,033oz at an average sale price of $2,346A$/oz. In to the next quarter, hedges of 1000oz per month are places at $2,331A$/oz for April, May and June.

 

Sykes Transport Powering On With Business

 

As a transport provider based in WA after starting in Geelong, Victoria in 1959, Sykes Transport is operating business as usual. General Freight services are continuing around WA and also interstate despite hard border controls. But the freight levels and loads for Sykes Transport continue and remain constant. The demand on logistics and the transport industry is quite profound at the moment. Air freight has become a luxury and some brands have opted to take express delivery away from options for purchasers. The express option generally involves air freight.

Sykes Transport however, continue to provide services in the same way day in day out. Managing Director David Sykes gave us an overview of how business was operating as usual.

“A very large part of our operation is to service those businesses that support the mining industry, both in the Goldfields and in the Pilbara. Those businesses are providing critical employment opportunities for locals. While we have had to change the way we do things, we have ensured that there is no change in our transport schedules or level of service. Right now that is more critical than ever.”

Mr Sykes says that the effect of the Coronavirus on the business from an operations point of view has meant implementing new structures and processes.

“While our customers may not have noticed any interruption to their usual level of service we have had to be diligent to ensure the safety of our staff and clients from the threat of Coronavirus. Some changes that we have implemented include splitting our operations and workshop staff into A and B teams, strict sanitary procedures in all vehicles and offices, controlling access to our depots in a manageable fashion, admin staff working from home and limiting interactions between our drivers and clients to name a few. As the threat and available information has continued to evolve, we have continued to update and implement new procedures.”

The crystal ball is not working in regards to a vision of the other side, yet Sykes Transport continues to look big picture.

“Our company was established in 1959 and we are very proud to have a trading history spanning greater than sixty years. While we have never experienced anything like the current Corona crisis in our past, we will continue to apply our proven strategy of collaboration, adaptation and innovation in order to best serve the needs of our clients through these difficult times and beyond. Internally that means updating our ISO business management systems and processes as necessary and externally it means keeping that critical dialogue and communication open with our clients to ensure we are meeting their needs.”

While things are still all going ahead well, Mr Sykes also added that he wished the best to those who are doing things tough in particular those affected by the legislation introduced that restricted trade to some industries.

“We have a tonne of empathy for those businesses that are doing it tough. There are lots of family businesses just like ours, that through no fault of their own are severely impacted by this pandemic. We are, purely by circumstance, considered an essential service and if in some small way we can make a difference to them by providing those essential transport services then it is both our duty and our pleasure to be able to help.”

PM Announces Biggest Economic Stimulus To Date

In Canberra on March 30, Prime Minister Scott Morrison has announced a massive stimulus package for employers to keep paying employees who are affected by the Coronavirus. The Federal Government is committing $130 billion over six months to support up to 6 million Australians which equates to around $1500 per fortnight.

This will be known as a Job Keeper payment.

The PM said “We are introducing a $1500 per fortnight Job Keeper,  payment, We will pay employers,  to pay their employees and we will make sure that happens”The Job Keeper Supplement will apply to part timers, full timers, sole traders and casual staff who have been in employment with their employer for over 12 months. Those made redundant after March 1 are also eligible.

This news is on the back of the ASX 200 closing at 5181 points up 7%. Health, financials and consumer facing sectors were strongest.

 

Saracen Response To Covid 19 While Keeping Financial Guidance

In a buck against current trends, miner Saracen has announced it will not be reducing its guidance at this point. The company remain on track for upwards of 500,000oz as part of their FY2020 guidance, but are also taking huge measures to protect staff and production at this time. The guidance for the FY2020 will continue to be monitored.

There has been a range of procedures implemented by Saracen to ensure health and safety of Staff is paramount. This includes:

  • Bans on all non-essential travel
  • Cessation of all discretionary expenditures and associated personnel
  • Remote working arrangements where practicable both on and offsite
  • Longer FIFO rosters for all personnel to at least 3 weeks on / 3 weeks off (from 15 days on / 13 days off and 8 days on / 6 days off i.e. 4 panel structure maintained)
  • FIFO travel restricted to charter flights only with strict health screening before departure
  • Employees and contractors living out of WA cannot travel to site unless 14-day quarantine period is met
  • Additional charter flights and buses added to ensure sufficient seating to support social distancing
  • Changes to the operation of mine camp facilities including kitchens, bars and closure of the gyms

Managing Director Ral Finlayson said in relation to the approach by Saracen on Covid19 “Our number one obligation is to protect our people and, in the process, the wider community, While the measures taken so far have had minimal impact on our production, these are not ‘business as usual’ times.

“The controls and restrictions we have put in place in recent weeks are likely to impact our mining production rates in the coming quarter. At this stage, with the benefit of substantial ore stockpiles, we expect the impact to be limited on mill production, but we will ensure we keep all stakeholders informed if and when circumstances change in the future.

“It may also become necessary to implement further measures, which we will do without hesitation if circumstances require.”

In other details on the production and operations news, there is a record group production of between 150,000 and 155,000 ounces estimated for the March quarter 2020; Production in the six months to December 31 was 216,452 ounces. The commissioning of the Carosue Dam mill to 3.2Mtpa is likely to be slightly delayed until the March quarter 2021, but Saracen has large ore stockpiles available for milling (more than 1.7Moz attributable) which will help insulate the business should mining be further restricted

A further update on current ore stockpile levels was provided:

  • Carosue Dam – Approximately 9 months processing
  • Thunderbox – Approximately 13 months processing
  • KCGM low grade – Approximately 25 months processing
  • KCGM sub-grade – Approximately 92 months processing

A pause has been placed on in-mine activity which includes definition drilling into Fimiston South at KCGM.

 

Gold Hits Australian Record Overnight

Its been on one rollercoaster ride lately, but overnight gold hit a record Australian price $2828.99 While restrictions on business, major disruption of industries and so much uncertainty loom, Gold has started to become the beacon for the world to look towards with much needed positivity. 

 

Gold is safe haven buying. It provides comfort to markets in times of crisisNot since 2011 have we seen the price of gold at levels we have right now The all time high for gold was $1917.90US/oz. At that time, the Australian dollar had parity with the US in sight, now it’s a different world. The Aussie dollar is buying just under 60¢ US at time of print.  
It has been an interesting time for gold according to analysts. However now its believed we are seeing the tradition response to the metal during uncertain times.
 
Platinum and Palladium have also had a run early to mid-week on markets. 

Price via Kitco

Galileo Hits Intersect At Lantern Project

Galileo Mining has announced some significant results from its Lantern Project,  as part of the Kitchener northern tenement as part of the Fraser Range Zone.

Reverse Circulation drilling revealed a source of geochemical anomaly by intersecting nickel and copper sulphidemineralisation in fresh rock.  Of three RC Drill holes, the following results have been revealed with a reported 0.1% copper cut off grade.

  • LARC001 10m @ 0.21% nickel and 0.14% copper from 62m (weathered rock)
  • LARC002 21m @ 0.19% nickel and 0.18% copper from 59m (weathered rock)
  • LARC003 12m @ 0.38% nickel and 0.33% copper from 124m (sulphide)
  • LARC003 5m @ 0.13% nickel and 0.13% copper from 150m (sulphide)

LARC001 and LARC002 confirmed the anomaly while LARC003 identified the source by intersecting it.

“This is an excellent result from the first ever RC drilling program at the Lantern Prospect. We have now discovered a fertile mineralised system containing nickel and copper sulphides. Our next step is to define the extent and quantity of the target metals and, given that we have over two kilometres of untested strike length at this one target alone, the potential for a large discovery is outstanding.” According to Brad Underwood, Managing Director of Galileo Mining.

Galileo now has further downhole EM surveys on LARC003 to complete as well as step out aircore and RC drilling around the LARC003 hole. There is also planned aircore and diamond core drilling as part of the upcoming drill program.

With assistance – Galileo Mining

Maiden Air Core Drilling By Krakatoa At Belgravia

A maiden air core drilling program has been completed by Krakaota Resources at its Belgravia Project  7km east of Molong and 20km NW of Orange in New South Wales.  A total of 128 holes were conducted for 2358m, but also expanded high resolution aeromagnetic survey of the Project was completed as well.  

In a release to market by Krakatoa, the following revealed some results of the program. “As part of the drilling program the presence of (high potassium) shoshonitic intrusive and volcanic rocks which are more widely distributed than previously believed. Alkaline rocks have been established as being closely related to certain times of gold and base metal deposit.” 

 Further details were released on the aeromagnetic survey as well. “The aeromagnetic survey was completed across the Sugarloaf Creek, Guanna Hill, Shades Creek, Nandillyan and Strathmore target areas. The survey will highlight possible intrusive bodies, porphyry style alteration and potential mineralising structures.” 

Krakatoa’s Belgravia project is part of the East Lachlan Fold Belt and has targets for porphyry Cu-Au and associated skarn Cu Au. It is part of the largest porphyry province in Australia.  

 

With assistance – Krakatoa Resources.