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Morning News Bites – October 27

Wiluna Mining Excited About Latest Drill Results.

Wiluna Mining has released high-grade results from a further 45 holes and 10,534m of resource development drilling “under the headframe” at the Wiluna Mining Centre. So excited are they by the results that they titled their announcement: “The Giant is Now Very Much Awake.”

The Company is targeting infill definition and further extensions to high-grade sulphide zones in the initial areas to be mined, because every 1 g/t increase in the grade in the sulphides should result in an additional 25kozpa of production in Stage 1 and 50kozpa in Stage 2, resulting in lower production costs per ounce.

Wiluna Mining Executive Chair, Milan Jerkovic, commented:  “Exceptional drilling results continue to flow from high priority sulphide mining zones at the Wiluna Mining Centre. This is noteworthy because results will underpin our updated Ore Reserves estimate to be published in January 2021. The Company is targeting high-grade zones, because every 1 g/t increase in the grade should result in an additional 25kozpa of production in Stage 1 and 50kozpa in Stage 2.

Some of the results went ~11metres at 29.4g/t and 3 metres at 100g/t with other holes producing grades well over 5g/t.

They say that exceptional drill results from each of the priority mining areas continue to validate the Company’s Stage 1 target of mining approximately 750,000 tonnes of underground sulphide ore per annum to produce, when fully ramped up, approximately 120,000oz per annum in gold doré and gold in concentrate commencing in October 2021.

Stavely Reports Biggest Hits Yet at Cayley Lode.

Stavely Minerals released resource drilling within the high-grade Cayley Lode discovery at the Thursday’s Gossan prospect, part of its 100%-owned Stavely Copper-Gold Project in Victoria, has returned one of the most significant intercepts since its discovery in September last year.

The spectacular new intercept in diamond hole SMD104, located ~275m south-east along strike from the discovery intercept of 32m at 5.88% Cu, 1.00g/t Au and 58g/t Ag in SMD050 continues to reinforce the scale, continuity and shallow nature of the copper-gold-silver mineralisation within the Cayley Lode.

An intensive resource drill-out is continuing with a focus of extending to the northwest within the 1.5km long discovery zone, with in-fill and step-out drilling continuing based on a roughly 40m x 40m drilling grid.  The Mineral Resource drill-out is well advanced and progressing well.

Very broad zone of significant copper mineralisation intersected from shallow depths in the Cayley Lode in drill hole SMD104:

144m at 1.04% Cu, 0.15g/t Au and 3.4g/t Ag from 35m down-hole, including: ▪ 84m at 1.55% Cu, 0.23g/t Au and 5.0g/t Ag from 95m, including: 28m at 3.31% Cu, 0.49g/t Au and 7.1g/t Ag from 151m

Resource drilling will continue on a 40m x 40m drilling grid with four rigs operating and two further large-capacity rigs expected on-site within the fortnight.

RareX claim Bonanza Grades for Rare Earths in Latest Drill Campaign.

RareX reported further significant results from recently completed in‐fill and extensional drilling at its 100%‐owned flagship Cummins Range Rare Earths Project in the Kimberley region of Western Australia.

Results from the two latest RC holes include significant widths of high‐grade rare earths and niobium mineralisation with broad zones of bonanza grade mineralisation encountered in one of the holes.

The north‐west trending channel of mineralisation encountered in previously released drill holes has been confirmed in the latest results, further enhancing the potential size and grade of the Resource in this area.

Previous historical drilling on surrounding sections had confirmed the presence of high‐grade mineralisation down to 70m below surface. The current drill program has now extended the zone of high‐grade mineralisation to 130m below surface.

One of the holes contained wide ultra‐high grade zones including 13m at 10.7% TREO and 1.04% Nb2O5 from 76m and 8m at 9.1% TREO and 0.58% Nb2O5.

RareX Managing Director, Jeremy Robinson, said: “We continue to be impressed by the consistency of this thick, high‐grade mineralisation within this north‐west channel within the Resource. These impressive results provide strong support for the potential both to upgrade the Resource and to define a high‐grade component within the broader Resource.

“Understanding the controls on the high‐grade mineralisation in the weathered zone will also assist with targeting potential high‐grade primary mineralisation in follow‐up drilling to further expand the overall size of the Resource.”

Horizon Says Pre-Feasibility Results Are Positive.

When releasing the pre-feasibility results for Horizon (ASX:HRZ) Managing Director Mr Jon Price said:  “Our Joint Venture partner RVT has done an excellent job demonstrating the quality and viability of this world class oxide vanadium resource. The Lilyvale deposit alone can provide globally significant supply for the next 100 years and easily expand production to meet the increasing demand from both the steel and emerging battery storage markets.”

“With this increase in demand in coming years and the reduction in the supply of vanadium from steel slags, we see the vanadium price continuing its steady climb and look forward to advancing the project to DFS level and commencing commercial production discussions with interested offtake partners.”

The Richmond – Julia Creek Vanadium Project is located approximately 50kms north-west of Richmond in North West Queensland. Richmond is a regional service town of 520 people situated 500kms by road to the west of Townsville and 400kms east of the mining town of Mt Isa.

The Mineral Resource update has resulted in improved grades over the previous Mineral Resource Estimate, and led to 76% of the Mineral Resource upgraded to the Indicated JORC Category for estimation of maiden Ore Reserves. In addition, the drilling enabled a large metallurgical sample representative of the orebody for additional concentration and downstream processing test work to also feed into the Pre-Feasibility Study.

A couple of nibbles for our News Bites:

Dacian Gold has re-negotiated their gold hedging for the next couple of years with 27,324 ounces moving from FY20121 to FY2022.

Managing Director, Leigh Junk, commented: “The restructuring reduces our obligations during FY2021, providing additional cash flow over the remainder of the current financial year by increasing our spot gold exposure. Now that our hedge profile is aligned with our production profile, the Company will be in a stronger position to pursue its corporate objectives.”

It would seem Mr Junk is turning the fortunes of the company around since coming on board.

Strategic Elements is developing a self-charging battery that it says will self-charge, be non-flammable, flexible, light and thin and environmentally friendly when compared to lithium batteries.  The batteries are “printed” and ideal for Internet of Things (IOT) devices.

SOR Managing Director Charles Murphy said: “Early stage results are extremely promising as we apply years of experience and intellectual property in electronic inks into the development of a Battery Ink that generates electricity from the environment. From the Automated Robotic Security Vehicle we are building with US giant Honeywell, the ongoing commercialisation of the Nanocube Memory Ink, this new development in Battery Ink and other commercial activities on the horizon, SOR is generating significant momentum”.

 

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Tonight’s Top Story – Will the New Work Health and Safety Bill Solve More Problems Than it Causes?

The new Work Health and Safety Bill introduced and passed in the WA State parliament lower house in February and last week passed in the upper house, advances new industrial manslaughter laws that have been mooted for some time now. In essence it means that individuals and business entities can be held responsible for the death of a worker and face serious penalties of incarceration or hefty fines. Some amendments by the upper house will need to be ratified in the lower house but it is expected to go through.

After the death, earlier in the month, of a worker on a construction site in Perth, unions staged a protest to put pressure on upper house members to act on the stalled legislation. Whether this was the catalyst for the upper house to finally vote on the legislation is hard to determine.

What is important now is that it has passed. There has been an outpouring of relief in some quarters that this has finally come to pass. Families Left Behind spokeswoman Regan Ballantine welcomed the passage of the bill. She has been the passionate spokesperson for the group since losing her 17 year old son in a workplace accident in 2017.

Unions and Families left behind have been campaigning for sometime now for the legislation to pass as they believe it will make a big difference in the way business conducts itself in regards to safety.

However not everyone is happy with the new legislation that exposes businesses owners, management and directors to large fines and incarceration. Some groups are saying that the new legislation goes too far and exposes employers to penalties for things that happen that are not within their control. Unfortunately because there are employers or people who work under them that like to cut shortcuts or do other things that put themselves or others at risk we will need legislation like this. I hope that these are the people that the legislation will target and not those that place the safety and well being of their health as a priority.

Lets look at an example that highlight what I mean. There are two companies in the same sort of business operating the same sort of machinery – The Good People Company and the Bad People Company. Both companies receive an urgent memo from a machinery manufacturer that says a piece of machinery they are operating could lose a rotating part that could cause serious injury or death to the operator or someone in the vicinity.

The Good People Company immediately take the piece of machinery out of service and advise their employees through a memo and a follow up toolbox meeting that until the manufacturer rectifies the problem the machine is not to be used.

The Bad People Company, knowing the machine is integral to the production process says nothing and their employees are allowed to continue using it, oblivious to the fault.

An employee from the Good People Company, anxious to get the job done quickly, and without the knowledge of anyone else uses the machinery he knows he shouldn’t use. In doing so the rotating part comes off, strikes him and kills him.

Over at the Bad People Company, a worker oblivious to the fault of the machinery, uses it as he has done many times before and the rotating part comes off and kills him.

Now when it comes to the Bad People Company, providing it can be proved that the company new of the fault and advice from the manufacturer, it would be a fairly easy decision to charge those who concealed the fault under the new legislation. I think most people would say it is obvious that the employer has culpability in this situation.

The Good People Company, under the new laws would still come under a lot of scrutiny, even if they proved they did everything in their power to inform employees and take the machinery out of service. Unfortunately, you cannot legislate for stupidity, which is what happened here but some groups are concerned that the new legislation will not take stupidity into account when dealing with workplace deaths.

On the whole I think it is good legislation, I just hope that businesses that are doing the right thing aren’t caught up in a piece of law that is intended to stop cowboys causing so much suffering.

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Morning News Bites – October 26

Saturn Expands Apollo Hill Gold System.

Saturn Metals (STN) has released further strong results from ongoing RC drilling at the Apollo Hill deposit within its 100%-owned Apollo Hill Gold Project, 60km south-east of Leonora in the Western Australian goldfields. The project is on the Leonora – Wiluna belt and is on strike in the Keith Kilkenny Shear.

The deposit and the Apollo Hill project are 100% owned by Saturn Metals and are surrounded by good infrastructure and several significant gold deposits. The Apollo Hill Project has the potential to become a large tonnage, simple metallurgy, low strip open pit mining operation.

A further resource upgrade is targeted for late 2020, incorporating results from drilling conducted since October 2019 when the resource estimate was last updated. It is shaping up to be a shallow project with consistent grades and open to the south and east.

Saturn Managing Director Ian Bamborough said: “Results continue to extend gold mineralisation and improve continuity in shallow hanging-wall positions along the deposit’s strike length. Extensional drilling on the main lode is returning some excellent intersections. Assays remain pending for a further 60 holes and drilling continues to home in on key growth areas of the deposit. We look forward to receiving and reporting on the next batch shortly and to incorporating them into the next resource upgrade process planned for later this year.”

Catalyst Finds New Gold Mineralisation.

Catalyst Metals (CYL) has advised that new zones of gold mineralisation with values of up to 43.5g/t have been intersected east of the Boyd’s Dam trend which may represent the Eagle 5 structure. There is virtually no previous drilling in this area which is interpreted to potentially contain a mineralised structure at least 1.5 kilometres long. Further shallow high-grade gold mineralisation was intersected at Boyd North (8m @ 4.9g/t Au, 3m @ 19.4g/t Au, 7m @ 5.7g/t Au) and has potential to continue southward at greater depth beneath Boyd’s Dam.

Mr Bruce Kay, Catalyst’s Technical Director, stated, “The air core program in 2020 was partly disrupted by weather events and COVID-19 restrictions but generally was successful in testing many reconnaissance areas. It is very encouraging to see a new structure with high grade gold mineralisation emerging east of Boyd’s Dam as well as further high-grade zones in the Boyd North area.”

The Four Eagles Gold Project is situated along the Whitelaw Fault which is considered to be a major structural control of gold mineralisation at Bendigo in Victoria, and to the north. Catalyst manages the entire Whitelaw Gold Belt and has interests in fourteen Exploration Licences and two Retention Licences which extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo and in other areas north of the Fosterville and Inglewood goldfields.

Navarre Finalises Agreement to Acquire Jubilee Gold Project.

Victorian gold exploration company, Navarre Minerals (NML) has finalised an agreement to acquire 100% of the Jubilee Gold Project following transfer of exploration licence EL6689 and a final cash payment of $20,000 to the vendor. The deal delivers the Company full control over a complementary and strategic high-grade gold exploration asset, 25km south-west of Ballarat, Victoria.

The 122Sqkm Jubilee Project includes the historical 619m deep Jubilee Gold Mine (mined 1887 – 1913) that produced approximately 130,000 ounces of gold at a recovered grade of around 12 g/t from a single east-west trending quartz reef. Since the mine closed, there have been no reported modern attempts at sustained exploration and no drilling.

The property occurs within a highly prospective and prolific mining district, in close proximity to a significant operating gold mine and processing facility located nearby within the historical 12 million-ounce Ballarat Goldfield.

Since gaining access to the property, Navarre geologists have uncovered three main target areas thought to be potential repetitions and extensions of the historical Jubilee quartz reefs (

Navarre’s Managing Director, Ian Holland, said: “This acquisition is an exciting expansion of the Company’s regional gold assets in Victoria.  The Jubilee mine workings have seen no real exploration in over a century despite having a history of delivering relatively uniform and continuous high-grade gold mineralisation from within quartz lode structures, all just 25 kilometres from an operating mine with significant processing capacity. The existence of transverse quartz reefs represents a rare opportunity for exploration as these structures have never been drill tested.”

Cyprium Metals Launches Share Purchase Plan and Raises $5M in Oversubscribed Placement.

Cyprium Metals (CYM) has secured $5.0 million through a highly oversubscribed placement from sophisticated, professional and institutional investors of 33,333,333 fully paid ordinary shares in the Company at $0.15 per Share. The Placement comprises:

Tranche 1: 11,505,120 Shares to be issued under the Company’s existing placement capacities (5,899,172 Shares under Listing Rule 7.1, and 5,605,948 Shares under Listing Rule 7.1A); and

Tranche 2: 21,828,213 Shares, which is subject to approval by the Company’s shareholders (Shareholders).

Additionally, in recognition of the support that has been received from the Company’s existing members, eligible Shareholders will be offered to participate in a Share Purchase Plan, which is aimed to raise a further $1 million, at the same issue price of $0.15 per Share.

Executive Director Barry Cahill commented: “We would like to thank the existing and incoming Cyprium shareholders for their support in this heavily over-subscribed capital raise. The Company is now well funded to advance the potential development of our Cue and Nanadie Well Copper-Gold Projects by commencing geophysics and drilling campaigns to target extensions to the existing resources whilst also testing other high priority targets. With the injection of new capital and strong copper fundamentals, we are excited for what is to come.”

Fennix Executes Contract for Road Haulage at Iron Ridge Project.

Fenix Resources Limited (FEX) is pleased to announce that it has executed a contract for the road transport component of its Iron Ridge Project with Fenix Newhaul Pty Ltd. Fenix Newhaul is the incorporated joint venture company established to implement the strategic alliance between the Company and Craig Mitchell, the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the Western Australian mining industry.

The contract is valued at around $360 million for the estimated 6-year life-of-mine, based on a terminal gate diesel price ex Geraldton of around $1.34 per litre (current diesel price is around $1.05). It is due to commence in December 2020, in line with the current project development timeline.

Fenix Managing Director Rob Brierley said: “Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge. We took an innovative approach to optimise this aspect and we strongly believe that the joint venture concept with Craig Mitchell has been the right way to go. Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based”.

The Company’s 100% owned, flagship Iron Ridge Iron Ore Project is a premium DSO deposit which hosts a JORC 2012 compliant resource located around 490 km by road from Geraldton port.

 

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Morning News Bites – October 23

Dacian Hits High Grades at Mt Marven

Troubled miner Dacian Gold (DCN) has released drilling results from its initial drilling program along strike from the Mt Marven open pit at its 100%-owned Mt Morgans Gold Operation, located near Laverton in Western Australia.

The newly defined continuation of high-grade mineralisation is currently delineated over a length of approximately 800m beyond the limit of the current open pit design for Mt Marven, and remains open at depth and along strike.

Infill drilling to 40m x 40m spacing to assess the continuity of the structure will commence immediately with Mineral Resource estimate work to follow.

The Mt Marven open pit is situated in the Mt Margaret dome area and is currently in production. As part of a first-pass assessment into the prospectivity of the Mt Marven Shear Zone (MMSZ) south of the active Mt Marven open pit, a total of 44 Reverse Circulation holes were completed on an approximately 80m x 120m drill spacing.

The program was aimed at testing future open pit potential in the vicinity of an existing Ore Reserve. The drilling highlights a strong mineralised trend coincident with the strike of the MMSZ and linking with the active open pit.

This will be good news for Leigh Junk, who was brought in to turn the fortunes of the company around when it hit trouble about 18 months ago.

Gold Road Resources Paves the Way in Gold.

Gold Road (GOR) is still kicking goals with its Gruyere Gold Mine which it shares 50:50 with Gold Fields.  The mine approximately 200 kilometres North-East of Laverton produced 55,919 ounces of the precious metal which was in accordance with their guidance.

Average grade for the quarter was 1.03 g/t with a recovery rate of 91.5% which came from 1.9 MT processed ore.  AISC was higher for the quarter at A$1,488, but for the year to date sits at $1,276.  With average gold sales at A$2300 for the year the mine is a good earner for the companies involved.  Production for the year is still expected to be in the range of 250,000 to 270,000 ounces.

Although no exploration work was carried out on the joint venture tenements Gold Road was busy exploring other tenements it has around Gruyere.  There are 4,500 kilometres of tenements for Gold Road to explore at the Kingston, Hirono, Savo, Beefwood and Gilmour South sites.

The Gruyere joint venture has 6.6 million ounces in mineral resources with an ore reserve of 3.7 million ounces.  With a lot of exploration upside for Gold Road their current plans of 12 years of production will surely be very conservative.

King Island Scheelite Raises A$2.5 Million.

King Island Scheelite Limited (KIS) has received binding commitments for A$2,568,000, in its recent capital raising.

The Placement has been oversubscribed by a range of institutional and sophisticated investors including Director Chris Ellis and other large shareholders, including Elphinstone Holdings Pty Ltd.  The Placement will result in the issue of approximately 46.7 million new fully paid ordinary shares at A$0.055 per share, with one free attaching listed option for every two New Shares issued in the Placement.

Funds raised through the Placement will be used to further advance the Company’s 100%‐owned Dolphin Tungsten Mine located on King Island, Australia.  KIS is continuing discussions with the Critical Minerals Facilitation Office (“CMFO”) as well as other State agencies regarding support for the redevelopment of the Dolphin Mine, given its strategic and regional economic importance.

King Island Scheelite Executive Chairman, Johann Jacobs, said:  “We are delighted to welcome several new institutional investors to support KIS at an exciting stage of the Company’s story. Our strategy has positioned us well to move forward with our plans to redevelop King Island’s Dolphin Tungsten Mine. The capital we raise through this placement will empower us to see the project through to financial close.

“We thank our existing shareholders and incoming investors for their support and look forward to executing the Company’s growth strategy through what we expect will be a highly active FY21.”

TNT Mines Acquires Historic WA Gold Projects.

TNT Mines Limited (TIN) is pleased to announce that it has signed a binding share sale agreement to acquire 100% of Warriedar Mining Pty Ltd, which owns the Eureka Gold Project 50km north of Kalgoorlie in the Western Australian Goldfields and the Warriedar Gold Project in WA’s Murchison region.

Both Eureka and Warriedar have a history of gold production, are located close to established infrastructure including operating gold mills. Eureka, which is under granted Mining Leases will be the initial focus of exploration, containing an existing JORC2012 Indicated and Inferred Mineral Resource of 762,000 tonnes at 1.80 g/t Au for 43,100 ounces of contained gold.1

Further detail on the Eureka and Warriedar assets, the consideration to be paid for the acquisition, capital raising, proposed Board and management changes and next steps is provided below.

TNT Executive Director Brett Mitchell said: “Warriedar stands out as a unique opportunity to acquire two Western Australian gold projects with a history of production that are positioned with immediate access to infrastructure and operating gold plants. This presents a unique opportunity to join forces with a management team that has a very successful track record in the exploration and redevelopment of ex-production gold assets in WA. Given the outstanding value creation they delivered for Spectrum Metals shareholders, Alex and James have developed a strong and loyal following and we are excited by the possibility of recreating their Spectrum success with TNT.”

Aus Tin Mining to Acquire Mackenzie Coal Project in Bowen Basin.

Aus Tin Mining Limited (ANW) has signed a binding Term Sheet with Resources and Energy Investments Pty Ltd (REI) to acquire its interests in the Mackenzie Coal Project located in Queensland’s premier coal province the Bowen Basin. Mackenzie includes a previously announced Indicated and Inferred JORC Resource of 138.1Mt of potential low volatile Pulverised Coal Injection (PCI) quality coal, and is being acquired by REI from the liquidators of previous owner MRV Bowen Basin Coal Pty Ltd. The proposed acquisition of Mackenzie complements the previously announced proposed acquisition of the Ashford Coking Coal Project in NSW.

Mackenzie comprises Mineral Development Licence (MDL 503) and Exploration Permit Coal (EPC 1445) both located approximately 30km north-east of Blackwater in the Bowen Basin which is well serviced by road, rail and port infrastructure at Gladstone. Mackenzie is adjacent to producing coal mines at Jellinbah and Yarrabee  with collective coal production of approximately 8.4Mt in 2019, of which the quality is primarily a low volatile PCI for export markets. Mackenzie is also proximate to coal projects subject to notable transactions including Curragh (Wesfarmers sold to Coronado Coal in 2018 for $700M) and MDL162 (Peabody sold to Wesfarmers in 2014 for $70M).

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Tonight’s Top Story – Is Modern Communication Leading to Social Isolation?

Close-up Hands Using Mobile Phone Stok Videosu (%100 Telifsiz) 6580247 | Shutterstock

Modern Communication; Or at least that what it is called.

Having been born in 1957 I can remember when the forms of conversations we had were face to face and telephone chats.  Other means of communication were radio, newspapers and the telex that was mainly used in business.  Wonder of all wonders in Australia in the 70s a fax machine became viable to use to transmit documents from one side of the world to the other.  Behold the 80s when the first mobile phone reached Australia’s shores.  Since then there has been an avalanche of technology unleashed on us and none more productive and destructive as the internet.  At this point you can probably see where I am going with this.

Let’s start with what I think are the positives of our modern-day communications.  The mobile phone has evolved to be a supercomputer in our hands.  Not only can you make phone calls on it, but you can surf the net, order your shopping and find out information in a heartbeat.

The use of home computers has provided the same benefits, with easy access to information that 40 years ago required a family to have a set of encyclopedias that took up a lot of room on any bookshelf and was invariably out of date the day you bought it.  Computers are no longer restricted to being big boxes that get in the way in the office.  They can be laptops or tablets that provide the same features but provide more mobility as the car becomes an office.

Emails are fantastic for doing business and a great way to keep a record of who said what if a dispute arises.  They may have replaced letters but at least some writing skills are still required.

Social media can be useful in much the same way as emails and they are good at getting information out to the masses.  That ticks off what is good in my view and I am sure others can add to the list.

Now I will look at what I perceive to be the bad of modern-day communication.  Have you ever been on public transport, in a waiting room or just anywhere public where a person has to talk at the top of their voice into the mobile phone and the conversation is so banal that you want to scream at them?  I have but have refrained from screaming at them.  What is the point of having a phone if you are going to yell into it?  What is it that makes people think I want to hear their part of the conversation?  Please, if you are one of these people, stop it!

Spam emails are now a fact of life no matter how annoying we think they are.  That Nigerian prince just won’t leave me alone even though I have no interest in him (or her) knowing my bank details so that they can fleece me.  And why do I have to use a service that insists on knowing my email details as part of the service, only to bombard me with offers I don’t want to know about and then ignore my requests to unsubscribe?

My favourite annoying feature is social media that I like to think of as anti-social.  People brag about having so many friends on social media but probably could not name one personal feature about the bulk of those “friends”.  What is the point?  And why do people jump on social media when they have had one too many and type something stupid that inevitably upsets one of their real friends?  It doesn’t make sense to me.

And social media is the major communication tool that actually stops us from communicating in an intimate way with the people we should be doing so with.  You can probably pick up at this point that I don’t use social media: so why should I care what other people do on social media?  I care because face to face communication is declining.  Next time you want to communicate with a friend, why don’t you pick up the phone, or better still if they are in the same community, buy them a coffee and have a chat.

Don’t get me wrong, the communication tools we have today are first class and when used properly can enrich our lives.  Used in the wrong way and we diminish the essence of our social beings.

Written by Gary Brown

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Morning News Bites – October 22

Saracen Releases Quarterly.

Hot of the press is Saracen Minerals (SAR) quarterly report.  In brief the main points from the report are;

– Quarterly gold production – 154,388oz at AISC A$1,169/oz.

– At 30 September – Cash / liquids A$467m, debt A$321m.

– Quarterly cash build – A$98m.

– Record quarterly unaudited NPAT – A$70m to A$80m.

Growth projects: Carosue Dam mill expansion, Thunderbox Underground development accelerated, Thunderbox D Zone, KCGM Morrison and OBH open pits. A$14m invested in exploration, Group Reserves and Resources updated to 8.6Moz and 17.0Moz respectively. SAR FY21 guidance of 600 – 640koz at an AISC of A$1300 – A$1400/oz unchanged. Saracen will pay a special, fully franked A3.8cps dividend, conditional on the Scheme becoming effective and banking consents.

OZ Minerals Quarterly report.

It would seem that OZ Minerals (OZL) have kicked some goals in the quarter if the enthusiasm in their quarterly report is to be believed.  They reported that production was up in the quarter and as a result of that production guidance will be increased.

The quarter saw underground ore movement records at both Prominent Hill and Carrapateena, with further AISC and C1 cost guidance reductions assisted by an increase in the assumed 2020 full year gold price to US$1,758/oz and favourable exchange rates.

Projects have been completed including the 270 km Prominent Hill power transmission line, consolidation of our ownership of West Musgrave and safe resumption of exploration drilling. We’ve also advanced a number of our growth options with updates to come in this final quarter on Prominent Hill expansion and the West Musgrave project.

Managing Director and CEO, Andrew Cole said, “Our financial position remains robust with $18 million net cash at the end of the quarter after further investment in growth capital, as well as payment of US$50 million in deferred consideration following achievement of contractual milestones at Carrapateena.

“Further progress was made on accelerating our strategic aspirations through Project Beyond including advancing our organic growth pipeline with work starting on developing the accelerated decline at Prominent Hill and with resumption of exploration and resource drilling in Australia and Brazil.”

Metalicity Report Significant Drilling Results.

Metalicity (MCT) has announced the return of further assays from the Drilling Programme at the Kookynie Gold Project in the Eastern Goldfields, Western Australia, approximately 60 kilometres south southwest of Leonora.

They received assays for a further 14 drill holes from the McTavish Prospect of the expanded drilling programme currently underway at the Kookynie Gold Project. The drilling has confirmed significant high-grade gold mineralisation at the Leipold Prospect and that mineralisation at the McTavish Prospect continues at depth. McTavish is circa 2 kms to the north and is along strike from Leipold. Metalicity has defined a significant anomaly between the two mineralised prospects where there is essentially no drilling and which the Company plans to test shortly.

Metalicity Managing Director, Jason Livingstone said:  “The intercepts returned from McTavish are incredibly encouraging. The results from just north of the Leipold Pit were in line with observations from the drill chips, however the drilling to date continues to illustrate the well-endowed area that is the Kookynie Gold Project.”

“The end of the year is fast approaching, and we at Metalicity are working hard to ensure we finish the year off well and set ourselves up for further success in 2021.”

Warrawoona Gold Project Gains Momentum.

Calidus Resources (CAI) reported what they say is good progress in the development of its Warrawoona Gold Project in WA’s Pilbara, with some key early works already completed.

Orders have been placed for long lead items, including the SAG mill, in preparation for the commencement of the main Project construction in the March Quarter of next year.

The early works include the site access road, installation of the 240-room accommodation village, establishment of the communications network and installation of water bores that will be utilised for construction, dewatering and production.

The early works programme is designed to provide the backbone of infrastructure ahead of the Final Investment Decision and the completion of permitting to facilitate main project construction.

Calidus Managing Director Dave Reeves said: “Ordering the mill is a significant milestone for Calidus because it sets our construction schedule and with final project permitting and debt finance anticipated to be completed by early next year, we remain on track for commencement of main construction activities in the March Quarter of 2020.

“Our operations team is in place and supervising the current early works scope on site. A Marble Bar-based contractor, Hawkezone Contracting, has completed the 7km Access Road and the site village installation is underway. All water bores have now been completed which will provide water for both construction and production activities.”

Confidence by Investors and lenders Sees Money Pouring into Mining.

It would seem by the amount of money being raised at the moment that confidence is high amongst investors and lenders.  Could this be because of high gold prices and other commodities that are doing well, like iron ore and nickel and also speculation that minerals in the battery markets are set to go with more governments talking about a “green” future?

Late last year Saracen Minerals and Norther Star Resources each raised circa AU$1 Billion to buy 50% each of the Superpit in Kalgoorlie.  That is a lot of money in anyone’s eyes.  Admittedly it was for a first-class asset with lots of upside, but nevertheless it got done and showed others there was a bit of confidence around.

Mining companies have never been shy when it comes to putting their hands out to funds and shareholders, but at the moment there appears to be a bit of eagerness in those funds and shareholders willing to cough up.  As usual funds for exploration are high on the list as companies can’t make money until they found whatever they are looking for.

Funding for plant builds or upgrades seems to be on the up and a lot of explorers are starting to talk big about their projects with a view to going to the market to raise cash for the next stage.

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Today’s Top Story – Does The Corporate World and the Media Treat People Fairly Anymore?

Today I thought I would look at how the media and some corporations treat people and ask; Is that really fair?

For example, the media in the last day or two have been all over the case of Channel Nine News director, Darren Wick, who was charged with a high-level alcohol driving offence that occurred last Friday evening.  Mr Wick has since come out and said that he has realised he has a drinking problem and taking steps to address it.

Prior to this, if you had surveyed all of Australia and asked; “Who is Darren Wick?’ the vast majority would have said, Who?  Yet here he is having his personal life splashed across the media; and of course, it was their competitors doing most of the wailing.  Don’t get me wrong, I in no way condone drink driving and what he did was reckless.  But did he deserve the attention he got? He is not a public figure. He is not a prominent person even if he does influence how news is delivered by Channel Nine.

If the Prime Minister was caught doing the same, I can see the rationale behind it being a story, but the prominence given to Mr. Wick was disproportionate in my opinion. One thing I can say is good on him for being so candid.

I would like to talk about a footballer at AFL level now who has been banned from playing football for about 400 days and still no charges have been laid or an end in sight to when it will be resolved.  West Coast player, Willie Rioli, has been accused of tampering with a urine sample he was asked to provide in August 2018.  He was stood down in September 2019 after he received a second breach for testing positive to cannabis.

Neither of the two accusations have been tested at a tribunal or any other forum where he can try and clear his name or accept responsibility for what has happened. The AFL has wiped their hands of it saying that ASADA has responsibility for how and when the case will proceed. I thought the AFL controlled the AFL not ASADA.

Apparently because of the way the AFL is structured, and the agreements clubs and players have with the AFL, there is no legal recourse to make the AFL act quicker.  As for ASADA, they apparently don’t care that a player has literally been left on the sidelines for so long, that it could affect his future, not only with the club, but life after footy.

Surely ASADA isn’t inundated with cases to the point that a back log of such magnitude exits. Surely it doesn’t take 400 plus days to analyse a “B” sample and report back to the AFL. If this is the case, there is a case for AFL to move away from the ASADA regime and start their own testing facility that they can exercise their own timelines on.

On top of all this if the eventual charges are proved he could face a four-year ban that will effectively end his career.  I don’t know if time already banned from the game will be taken into consideration when issuing a ban, but I hope for Mr. Rioli’s sake it will be.

Because Mr. Wick is going through the court system, he will be dealt with quickly, even though it is a serious charge, he has publicly acknowledged the facts and the courts can deal with cases like this quickly. In most cases like this it is the defendant that causes delays, if there are any.

With Mr. Rioli, it is a case of not even been charged with an offence or offences and no prospect in site, as those responsible for carriage of the case drag their feet. No Charges – no play doesn’t sound fair to me.

These are just two examples of people being harshly treated by media and corporations, in my opinion, that have little empathy or sympathy for the people involved. There are countless others who have been in similar situations that have had their lives changed forever.

Written by Gary Brown.

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Morning News Bites – October 21

Red 5 Upgrade Mineral Resource for Satellite Pit.

Red 5 Limited RED) reported an updated Mineral Resource and maiden Ore Reserve estimate for their Great Western gold deposit, a satellite deposit located near Red 5’s Darlot Gold Mine in Western Australia, ahead of the planned commencement of open pit mining in January 2021.

The Great Western deposit was acquired by Red 5 in April 2020 for $2.2m and forms part of their Darlot Mining Hub strategy. Ore from the Great Western pit will be trucked to the Darlot Mill for processing.

The open pit mining operation will be underpinned by a maiden Open Pit Ore Reserve of 437,500 tonnes grading 2.5g/t Au for 35,424oz of contained gold. Based on a proposed mining rate of between 30,000 to 40,000 tonnes of ore per month, the open pit is expected to be completed over ~13 months, with plans to then access the underground orebody via a portal at the base of the pit.

Red 5’s Managing Director, Mark Williams, said:  “The Great Western deposit has emerged as a strong source of satellite ore feed for the Darlot processing plant, with the completion of an initial Open Pit Ore Reserve of 35,424 ounces of contained gold paving the way for the start of open pit mining planned for January 2021. Importantly, this will also provide a platform from which to pursue a potential longer-term underground mining operation.

CZR Resources to Complete PFS.

CZR Resources (CZR) has announced that the PFS on its Robe Mesa Iron Ore Project in WA’s Pilbara is progressing well and is set for completion in December this year.

The PFS is focused on a simple, low capex DSO iron-ore mine that aims to maximise the use of existing infrastructure and a trucking model for transport of product to port. Closer port options (within a 100km radius of Robe Mesa) between Onslow and Dampier may present an opportunity to reduce the haulage distance to port, as other companies look to develop new port infrastructure along the coastline.

Robe Mesa has a JORC 2012-compliant Indicated and Inferred Resource of 84.5Mt at 53.8% Fe using a cut-off of 50% Fe and calcining to Fe at 60.2% This includes a higher-grade resource component of 24.7Mt at 56% Fe (that calcines to 62.7% Fe) that is the focus of the PFS.

Given the current strength of the iron ore market, CZR is assessing a direct shipping ore (DSO) mining operation of 1.5 to 2.5 million tonnes per annum, utilising road-trains to haul ore approximately 400km from Robe Mesa to Port Hedland.

The strong outlook for Robe Mesa has been confirmed by the Company’s recent discussions with leading Asian steel mills and trading houses regarding the acceptability of the product and likely pricing points based on an indicative ore-specification.

Lynas Corporation Release Quarterly Report.

Lynas (LYC) released their quarterly report this morning and some of the information coming from it was: As a result of the the temporary shutdowns in both Malaysia and Mt Weld because of COVID-19 Movement Control Order (MCO) issued by the Malaysian government, production of NdPr was at 75% of Lynas NEXT production rates during the quarter (equivalent to original nameplate production rates). Lynas says it is currently sufficient to meet demand from their customers while COVID-19 uncertainty remains.

Total NdPr production during the quarter was 1,342 tonnes, up from 775 tonnes in the previous quarter and Total Rare Earth Oxide production was 4,110 tonnes, compared to 2,579 tonnes in the previous quarter. Sales revenue was A$87m during the September quarter, up from A$38m in the previous quarter.

The company remained cash flow positive during the quarter, as they captured efficiencies while running production at original nameplate. They expect to see an increase in expenditure related to Lynas 2025 projects in the coming months.

During the quarter they completed a A$425 million equity raising to fund Lynas 2025 foundation projects. One of those projects is the Kalgoorlie Rare Earth Processing Facility. They have now awarded the contract for the longest lead time item, the kiln, for facility, signed a sub-lease with the City of Kalgoorlie Boulder (CKB) for the industrial zoned site selected for the Kalgoorlie Facility and obtained a General Purpose Lease under the Mining Act.

BHP Shelve Olympic Dam Project.

In their quarterly report, yesterday, BHP (BHP) announced it will put on hold its planned multibillion-dollar expansion at South Australia’s Olympic Dam, after studies of the ore body revealed underwhelming prospects.

The plans were to spend up to $3.5B on the Brownfield Expansion but studies have shown that the copper resources in the southern mine area are more structurally complex, and the higher-grade zones less continuous, than previously thought.  This is despite BHP reporting the highest quarterly production since 2015.

Part of the report said; Following more than 400 km of underground drilling associated with the Brownfield Expansion (BFX) project studies, we have improved knowledge of the ore body’s variability. This has provided challenges for the economics of the BFX project, and we have decided the optimal way forward for now is through targeted debottlenecking investments, plant upgrades and modernisation of our infrastructure.

It will be a blow to the SA economy, especially on the back of the damage done by the impact of Covid19.  There were hopes that the project would create 1,800 jobs on the construction side and once completed 600 permanent roles in the operation.

The company is still expected to spend about $1.5B on Olympic Dam over the next two years.  Whether this gives hope to the Brownfield Expansion being resurrected, only time will tell.

KIN Mining High-Grade Results.

Kin Mining (KIN) has released a report announcing significant new assay results from recent diamond and Reverse Circulation drilling at the Cardinia Hill prospect as part of the ongoing Phase 3 drilling program at its 100%-owned Cardinia Gold Project, located near Leonora in Western Australia.

The Cardinia Hill prospect, located 2km from the proposed processing plant site, is a recent discovery at the Cardinia Gold Project and has been the focus of a resource drill-out program designed to underpin a maiden Mineral Resource estimate as part of a project-wide update by year-end.

Commenting on the latest Cardinia Hill results, Kin Mining Managing Director Andrew Munckton said:  “Diamond drilling is continuing to deliver excellent results at Cardinia Hill, with high-grade gold associated with the pyrite mineralisation intersected at depth in the Southern Shoot and strong intersections also achieved within the Northern Shoot. This highlights the potential for good continuity of the mineralisation, with an improving grade profile, at depth within the recently completed resource drill-out.”

“While our main focus is on establishing a maiden Mineral Resource estimate for Cardinia Hill by the end of this year, the diamond drilling has given us a much better understanding of the geological controls on the mineralisation and also highlighted the potential for discovery of shallow additional zones and extensions to the existing mineralisation into underground mining positions in the future.

Some of the targets hit were 5.4M at 6.18g/t from 186.4M and 5.3M at 3.31g/t from 96M and they confirm the extension of the resource at depth.

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Tonight’s Top Story – Are We Over-Governed by Politicians and Bureaucrats in Australia and at What Cost?

File:Australian Senate - Parliament of Australia.jpg - Wikimedia Commons

We have a federal government; each state and territory have a government and there is a myriad of councils and shires in each as well.

Each level of government has its own responsibilities however there is a lot of crossover in some areas.  Take for example health and education.  The federal government provides a lot of the funds that each state and territory government need to operate these sectors.  Although the feds provide the bulk of the finances it is the states and territory governments that are responsible for them.

In health you have a bureaucracy at federal level determining what level of funding should be allocated where.  In particular the feds are responsible for funding hospitals, but the states run them.  You then have another bureaucracy at state level allocating the funding to each public hospital and of course another bureaucracy within each hospital allocating funding to the various departments.  That is a lot of money being spent from the allocated budget before one patient receives a benefit.

And for education the process is repeated, again with a lot of money being spent before one student lifts a pencil in a classroom.  Then there is the political argy-bargy that goes on between state and federal counterparts in the sectors.  Each minister in each sector would have a plethora of advisors, media and administrative personnel so the minister can be across their brief and take pot-shots at others over how their administration is better than the others.  More money out the door before it gets to be used on grassroot purposes.

At the recent Hotel Quarantine Inquiry in Victoria a complicated bureaucratic system of decision making has been revealed.  The end result was a disaster that no one is keen on taking responsibility for.  Now I am sure that this level of bureaucracy is not unique to Victoria and there will be other jurisdictions that have the same complexity of administration in various areas.  This again highlights the theme of a lot of money being spent before what is left over gets an outcome.

The public service juggernaut in Australia sailed through the Covid19 restrictions without a scratch.  While other sectors were laying off people, reducing hours or closing down, the fortnightly paycheque for public servants kept on being deposited into their accounts.  All hell broke out in NSW when the government put a freeze on public service wages during Covid19.  Unions threatened industrial action, not satisfied that they didn’t have to take the risks like those in the private sector.  Secure in their jobs and with no pay cuts it riled many that were suffering through no fault of their own.

At the local level the various shires and councils that look after their patches are too many in some states.  In WA there are 138 councils.  Yes, WA is a big area but some of these shires cater for a population of 300 ratepayers or less.  The WA government has flagged that they are amenable to reducing the number of shires to make it more practical.  Peppermint Grove Council in Perth’s leafy western suburbs covers an area of one square kilometre. (That is not a typo).  It has revenue of only $5M and at last count had 24 employees.  Surely it would be a candidate to merge with another council, in fact as part of a merger of a few councils in the area.  The government is also keen to reduce the number of councillors that sit around the table.

I suppose the point I am trying to make is that at all levels we have too many politicians and too many bureaucrats that waste money that could be going towards the myriad of projects that need the money more.

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Morning News Bites – October 20

Significant Assays at Bardoc’s Zoroastrian Site

Bardoc Gold Limited (BDC) has reported significant new assay results from recent exploration and in-fill drilling at the cornerstone 526koz Zoroastrian Deposit, part of its 100%- owned 3.03Moz Bardoc Gold Project, located 40km north of Kalgoorlie in WA.

New drilling results from the northern end of the Zoroastrian Deposit have extended the mineralisation further to the north outside of the current Mineral Resource model and have provided the impetus to expedite a diamond core rig to site to further evaluate this emerging area.

The drilling has identified a significant zone with a standout intercept of 89m @ 1.43g/t Au from 192m, which is interpreted as the development of multiple footwall lodes within the Royal Mint Lode.

This intersection is the broadest zone of mineralisation recorded at Zoroastrian and highlights that the cornerstone deposit still has areas that can yield significant widths of strong gold mineralisation, providing considerable upside for future mining and exploration activities.

Bardoc Gold’s Chief Executive Officer, Mr Robert Ryan, said the standout intercept of 89 metres at 1.43g/t, including several higher-grade zones, is the widest seen at Zoroastrian to date and one of the better exploration results to be generated across the Bardoc Gold Project.  He said, “Importantly, our recent drilling has shown that the northern end of the deposit is shaping up as an important growth opportunity for the Company. We are seeing broad widths of mineralisation rarely seen at Zoroastrian, with the recent results clearly demonstrating that there is significant potential to extend the Mineral Resource well beyond the current 526koz.

BHP Releases Quarterly Report

BHP (BHP) announced in their September 2020 quarter, Atlantis Phase 3 achieved first production ahead of schedule and on budget. Given this, the progress of Atlantis Phase 3 will not be reported in future Operational Reviews.

The Jansen Stage 1 project in Canada is expected to be presented to the BHP Board for Final Investment Decision in the middle of the 2021 calendar year. As a consequence of the challenges encountered earlier with placement of the shaft lining and then the more recent impacts from our COVID-19 response plan, the Board has approved additional funding of US$272 million for the completion of the shafts, resulting in a total budget of US$3.0 billion (previously US$2.7 billion).

Jansen Stage 1 remains well positioned with attractive medium to longer-term commodity fundamentals, and is set to be a high-margin, low-cost, long-life asset, with multiple, basin-wide, expansion opportunities. As always, we will be disciplined about our entry into the market and it must pass our strict Capital Allocation Framework tests.

At the end of the September 2020 quarter, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.9 billion over the life of the projects.

BHP Chief Executive Officer, Mike Henry:  “BHP has started the new financial year with a strong first quarter of safety and production performance. Group production rose two per cent from a year ago driven by solid results in metallurgical coal and iron ore, our major growth projects made good progress, and we secured more options in copper, nickel and oil.”

Vango Release Significant High-Grade Intersections at Marymia Gold Project.

Vango Mining (VAN) has released new, high-grade, drilling results. The new lode intersections both confirm and extend the recent K1 lode discovery, in the PHB Corridor, to potentially over one kilometre, open at depth.

The results are from the final eight of 11 broad spaced reverse circulation holes at K1, part of the current 36,000m drilling program on the Marymia Project, and are in addition to the previously reported 6m @ 8.66 g/t Au, incl 2m @ 23.8 g/t Au from 128m, that lies 500m to the southwest along strike within the targeted Mine Mafic unit.

Managing Director, Mr Andrew Stocks, commented: “These results are highly significant as they validate our approach to targeting mineralised structures where they intersect the highly prospective Mine-Mafic unit at what is still a relatively shallow depth. These results give us confidence that we will continue to expand our open pit and high-grade underground resource base at the Marymia Project.

Vango Mining is an exploration mining company with ambitions of becoming a high-grade WA gold miner by developing the 100% owned Marymia Gold Project (Marymia) located in the mid-west region of Western Australia, consisting of 45 granted mining leases over 300km2.  Marymia has an established high-grade resource of 1Moz @ 3 g/t Au, underpinned by Trident – 410koz @ 8 g/t Au3, with immediate extensions open at depth/along strike.

Estrella Shares Up ~50% on Release of Survey Result.

Estrella Resources Limited (ESR) released an update to the market with results of the highly anticipated Down-Hole Transient Electro-Magnetic (DHTEM) survey of diamond core hole CBDD030 which intersected significant massive Ni-Cu (and PGE) bearing sulphides deep below the T5 discovery zone at the Company’s flagship Carr Boyd Project. The T5 Prospect is located 1.1km NE of the historic Carr Boyd nickel mine and was identified in 2019 following successful RC drilling of a HP FLTEM anomaly.

Chris Daws, CEO stated “This has been an astonishing result for the Company and its shareholders who have all been rewarded through patience, persistence and belief. The results of the DHTEM now support the mineralised sulphides seen in the drill core, which is currently in the laboratories being cut, sampled and priority assayed. It is open in all directions and will be chased by immediate further drilling.

“The core was only recovered from the field by the Company’s consulting geologist Neil Hutchison last weekend and showcased the next day at the Diggers and Dealers conference. The results of the DHTEM have put to rest any of my concerns about scale and we are now eagerly awaiting the assay results to get a clear understanding of the potential of this discovery.

“Planning and scheduling of the next round of holes to further test this zone is well underway, as we await the completion of hole CBDD031 which is the final hole of the Stage 1 drill program. It is being drilled 600m north of the discovery hole into a blind basal contact position in the same manner as CBDD030 and will provide critical geological and geophysical data to assist in unlocking and understanding the potential of the T5 Prospect discovery zone”

Venturex Resources Gets Exploration Back on Track

After experiencing an unavoidable delay to exploration drilling Venturex Resources (VXR) has advised that the contactor is now on site and first hole will commence on the 21st October 2020.

The Sulphur Springs Project is located south-east of Port Hedland and includes the proposed Sulphur Springs and Kangaroo Caves mines, together with tenements covering ~27km of the Panorama trend that contains numerous advanced VMS-style exploration targets. The Sulphur Springs Project hosts a total Mineral Resource (Sulphur Springs + Kangaroo Caves) comprising 17.4 million tonnes grading 1.3% copper, 4.2% zinc and 17g/t silver.

The planned program is designed to follow-up on the exceptional results generated from 2019 drilling at the advanced Breakers Prospect as well as to test the Heli-borne Electromagnetic target XA8, where previous drilling intersected anomalous Ni-Cr mineralisation.

The program will commence at the XA8 prospect with two drill holes planned to test the down- plunge and along-strike continuation of a DHEM target and associated Ni-Cr mineralisation previously intersected at the XA8 Prospect.

Following XA8 they will target the Breakers prospect where four drill holes are designed to follow-up the along-strike and down-plunge continuation of massive sulphide mineralisation intersected at the Breakers Main Gossan, including the thick, high-grade intersection within (18m @ 7.75% Zn).

An additional two drill-holes will also be completed to follow-up zinc-rich mineralisation intersected in BKR007 (8m @ 3.37% Zn) at the Breakers North target, located approximately 1.1km NNE of the Breakers Main anomaly.