Ramelius Offer For Musgrave


As a new Financial year commences, Ramelius Resources have announced an offer for Musgrave Minerals. Directors of Musgrave have unanimously recommended that the offer be accepted in the absence of a superior offer. This comes after Musgrave was the target for Westgold Resources last week.

Ramelius’ Shannon Decline at Mount Magnet

The offer by Mark Zeptner`s Ramelius is 1 Ramelius share for every 4.21 Musgrave shares held plus an additional $0.04 in cash per Musgrave share held. This is secured by around 12.13 % in pre bid acceptance. The Managing Director said the company is looking to develop the Musgrave Cue project “Subject to the Offer being successful, Ramelius is looking forward to continuing drilling across the tenement package to expand the existing resource and ultimately developing the Cue Project into a high-grade satellite mine for the Mt Magnet production centre, to maximise value for all shareholders.” Zeptner said.

While the value for shareholders was prime for Musgrave Minerals Managing Director Rob Waugh “We are confident that the Cue Project will be in good hands should the Offer be successful and in the event that does occur, we would look forward to seeing the project contribute to the ongoing success of Ramelius’ Mt Magnet operations. By joining with Ramelius, Musgrave shareholders will have the opportunity to continue to share in the upside at the Cue Project while accessing the benefits that come with being an owner of an established, profitable mining company. The cash component of the offer provides additional certainty.”


Tonight’s Top Story – Diggers Wrap Up, Award Winners and A Night To Remember.

Once again Diggers and Dealers is done and dusted and all that is left to do is shake off the hangover, process all the information that has spewed out and look forward to next year’s event.  This year Diggers nearly didn’t go ahead but the owners took a leap of faith and pencilled in the October dates and then worked their butts off to ensure it happened.  Congratulations to the organisers for bringing together a wonderful three days of presentations, displays and functions.

For me a couple of the outstanding presentations were from Mincor and De Grey who outlined really exciting projects that they are involved in.  They are two companies that people should keep an eye on as the projects advance.  That is not to say that all the other presentations weren’t good.  Quite the contrary as the quality of the presentations this year was high.

This year the forum seemed to have an extra buzz about it as people are very bullish on the mining sector at the moment.  The locals in Kalgoorlie Boulder are expressing more confidence in the sector as well and town is really humming at the moment.  There are many projects in the pipeline that the local council is working hard on and this is on the back of Lynas starting construction of their processing plant on the outskirts of the city.  If they all come to fruition Kalgoorlie and surrounds is in for a huge lift.

At the end of every Diggers they have a gala night and awards are presented in different categories.  The winners of this year’s awards are:

The prestigious GJ Stokes Memorial Award went to Ms Gina Rinehart.  The award is in honour of Geoffrey Stokes who started the forum in 1992, with 150 delegates.  Sadly, Geoffrey passed away in 1997 at an early age but his legacy lives on and also recognised in the naming of the award.  As an aside, on Thursday morning after Diggers, the City of Kalgoorlie Boulder laid a plaque in Hannan Street outside the Palace Hotel, the original home of Diggers, as part of their Walk of Fame program.

Ms Rinehart is the first women to receive the award, which is made to someone who has made an exceptional lifetime contribution to the mining industry.  Ms Rinehart took over the Hancock company in the same year Diggers started and has steered the company to be the behemoth it is now.  Her astute business acumen has seen her increase her privately owned assets immensely but has also allowed her to do successful joint venture projects that have increased the value of the company.

Another of the awards, Dealer of the Year, seemed to be a no brainer and was not a surprise when dual winners, Raleigh Finlayson’s Saracen Mineral and Bill Beament’s Northern Star, were announced.  This comes off the back of their respective companies each buying 50% of the famous Kalgoorlie Superpit within a month of each other earlier this year.  The purchase was a great boon to the local community and has instilled new confidence in the sector in the region.  Add to that their yet to be approved $16B merger and these companies have really set the pace in 2020.  They are both young and energetic, which augers well for the new merged company.

Ramelius Resources took out the Digger of the Year award after announcing a 420% increase in net profit.  This came from its operations in the mid-west around Mt Magnet, the Vivien Project near Agnew and in the Westonia Green belt, the Edna May mine.  Producing 230,00koz last financial year it was a great year for the diggers.

Exciting explorer De Grey Mining won the emerging company award for its work in the Pilbara and the discovery of the Hemi project.

Other awards were presented to Dominic Piper in the media category and Georgia Kerr who was presented with the Ray Finlayson prize for Leadership and Academic Excellence.

Congratulations to all the award winners and a big thanks to Myles Ertzen, Sharon Giorgetta and their team at Diggers for once again putting on a great forum and showcasing the great city of Kalgoorlie Boulder.

Tonight’s Top Story – Is Nickel The New Gold?

David Southam, Managing Director of Mincor Resources gave a lively presentation about their Kambalda operations and positioning themselves to be a major player in the Nickel sector.

He boldly declared that: “Nickel is the new gold!”, which raised a few eyebrows before going on to give a compelling case. David is sure that we are moving into a third wave of nickel in the Kambalda region. The first was the boom that put Kambalda on the map in the 60s and 70s.  It wasn’t until the 90s, when WMC divested themselves of the mines in the same region that the second wave occurred.  He believes that 2020 is the start of the third wave and Mincor will be well positioned to make the most of it.

They currently have an ore reserve of ~71,000t of contained nickel, they are fully funded to production and have appointed Pit N Portal as their mining contractor. The company has some exciting prospects with Cassini emerging as a major site for them. The Cassini Main site has a mineral resources of1.5Mt @ 4.0% Ni for 58.7kt of contained nickel and Ore Reserves of 1.2Mt @ 3.3% Ni for 40.1kt of contained nickel.

The newly discovered Cassini North site is showing a lot of promise with an Intercept of 2.5m at 6.6% Ni from the first hole.  David believes that it will be very similar to Cassini Main when fully explored.

David got excited when he spoke of the “Golden Mile” which is untested ground between the Durkin North and Long sites. This ground is now controlled by Mincor and David is keen to explore this ground that has yet to be explored and sits between two very lucrative sites.

As you would expect, David was very bullish on Mincor’s prospects, but this is based on his belief that nickel is about to shine again.  With low production costs and a rising nickel price, maybe it is Mincor’s time to have some time in the sun.

Bardoc Gold:

CEO Rob Ryan outlined Bardoc’s operations 40 kilometres North of Kalgoorlie. They currently have a 3Moz resource, a pre-feasibility study completed earlier this year and are well funded with AU$30M cash in bank.

Bardoc have pulled together a series of small projects that now come under one banner. It is anticipated that at current resources they have a mine life of eight years with a production target of 1.02Mozs.  A low cost of production will make the mine a lucrative money spinner for the company.  The plan is to sell 50% of the gold as a concentrate and the remainder in Dore from their Aphrodite.

Bardoc is sitting on ground that is ripe for exploration as there has been insignificant drilling carried out in the area.  This will see the resource grow and a low cost operation could be a going concern for many years to come.

Ramelius Resources.

It seems to be the year for records for this miner.  Production up 17% to 230koz.  Record net profit up $20% to A$113M.  The return to shareholder in dividends doubling from 1c to 2c and the company is now on the ASX200 bourse.

Ramelius is currently operating at about A$1,250 per Oz across its sites after working hard to get their cost management to a satisfactory level.  They have a series of mines around the Mt Magnet area including Vivien, Penny , Galaxy and Morning Star.  The Penny mine has proven to be a high grade resource with average grade of 15g/t.

These are complimented by the Edna May plant at Westonia in the wheatbelt.  Gold from Marda Gold and Edna May mine currently feed this plant.  Tampia mine will be up and running soon with long lead items ordered.  Meanwhile, Symes Find which is nearby is being drilled to prove up resources.

This is a snapshot of what occurred on day one of Diggers and we look forward to bringing you more valuable information from those presenting on day two.