Morning News Bites – July 20

Prime Minister Scott Morrison’s popularity has increased to its highest level in 12 months in the latest Newspoll, COVID-19 spread in New South Wales attracting more concerns and interest around Newmont and Northern Star Resources as NSR let lapse its exclusive purchase rights according to the AFR.

  • Classic Minerals has purchased a Gekko Processing Plant to use at Kat Gap 130km south east of Southern Cross. The gravity concentration processing plant has a capacity of 30 tph and is a flexible design for mobility is scaleable to a Gekko Python Plant with a processing capacity of 250tph. The Gekko plant is ideally suited to the Kat Gap ore which has a very unique high level of gravity gold concentration.
  • Kin Mining has announced a new Australian share holder who has subscribed for $1m in shares while Kin`s two largest shareholders (Delphi and Harmanis) subscribed for an additional $573,000. Kin has restricted the amount of new shares on offer after the recent rights issue. Phase 3 drilling is fully funded until the end of FY 2021 and a strong news flow from drilling is expected. Kin Mining’s Managing Director, Andrew Munckton, said “The additional funds raised through the placement of this Shortfall, together with the $6.066 million already raised from the Rights issue, gives us the capacity to complete our Phase III exploration program across the Cardinia exploration targets to the end of FY2021, as planned.”  
  • The new camp at Aurora Tank has arrived and has been installed at Marmota for it’s, Aurora Tank Gold Discovery. The camp is operational and drillers are expected on site tomorrow (July 21 2020). Marmota recently raised $6.5M and received a $225,000 grant from the South Australian Government as part of the Accelerated Discovery Initiative. 
  • South32 has achieved record production in Australia with its Australia Manganese Ore Joint Venture in the FY20, alongside record results at its Brazil Alumina and Hillside Aluminium operations. Australia Manganese saleable ore production increased by 4% as Manganese ore sales increased as market conditions were favourable. S32 saw saleable production increase by 2% at its 86% share Worsley Alumina, where improvement initiatives are expected to support a sustainable increase in production to nameplate capacity.  While Cannington in Queensland has reduced its run of mine stocks and a further improvement in underground mine performance helped push a 14% lift in ore processed. According to South32 CEO Graeme Kerr,  “Our priority remains keeping our people safe and well, maintaining reliable operations and supporting our communities through the COVID-19 pandemic. Despite the health crisis, we delivered a strong operating result, highlighted by annual production records at Brazil Alumina, Hillside Aluminium and Australia Manganese ore. We have continued to see good demand for our products, with sales exceeding production at the majority of our operations. With uncertainty remaining in global markets we continue to manage our financial position to ensure we retain the right balance of flexibility, efficiency and prudence. Looking forward we remain focussed on reducing controllable costs, managing counterparty and supply chain risk and optimising working capital to ensure the business remains resilient during a potentially extended period of volatility and lower commodity prices.”
  • Drilling for Thomson Resources at their Harry Smith gold prospect on the Lachlan Fold Belt in New South Wales, has been put on hold due to wet ground. However drilling is being undertaken and has commenced at Yalgogrin gold project while waiting for ground to dry at Harry Smith. Wet weather, fog and the ground conditions around Harry Smith has meant the suitability of drilling is not conducive and the time for the ground to dry will take a number of days. This has resulted in the AMWD drilling rig being mobilised to Yalgogrin. Once ground is suitable, drilling will recommence at Harry Smith.

 

 

Quick Notes –

Legend Mining has added Oliver Kiddie to its board as an Executive Director. Mr Kiddie will commence August 10 2020 as Derek Waterfield will move away from his board role and take up the role of General Manager Exploration.

Halloysite confirmed across the Eyre Pennisula for Archer Materials. Greg English, Archer Chairman said “We have directly identified halloysite, which is a high value form of the alumina-silicate clay kaolin, at Kelly Tank, Bunora and Bunora East prospects. This is an excellent result that confirms reports of the [kaolin] mineralisation by historic explorers, as well as the presence of halloysite across a large geographical area with all samples tested being close to surface.”

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