Morning News Bites – November 2

Nexus Releases High Grade Assay Results.

Nexus Minerals (ASX: NXM) has released significant high-grade assay results from the Reverse Circulation holes drilled at the Pinnacles JV Gold Project, in the eastern goldfields of Western Australia. All RC drilling assay results have now been received from this program.

Nexus consultants have been engaged to undertake a pit optimization study and mine development plan options, to assist in determining the financial viability of establishing a gold mining operation at Pinnacles. Due to the pre-existing ore sale and purchase agreement with Saracen, Nexus believes there is minimal capital expenditure required to initiate mining, with any ore mined to be processed through Saracen’s Carosue Dam Operation. The Feasibility Study will incorporate this resource definition drilling, geotechnical drilling, environmental studies and metallurgical test work along with other key assessments and permitting.

The RC program successfully tested 3 specific areas of the proposed open pit and U/G operations and some of the grades included:

7m @ 6.25g/t Au from 54m, Including 4m @ 9.68g/t Au

9m @ 9.51g/t Au from 70m, Including 4m @ 20.13g/t Au

5m @ 6.86g/t Au from 99m, Including 2m @ 13.60g/t Au

Managing Director Andy Tudor said “The results received from this RC drill program have confirmed the grade profile we have modelled at the different levels of the proposed mining operation, in particular the high-grade mineralisation in the base of the proposed open-pit. We have also made significant advancements on the feasibility study inputs, with the end of year timeline for the completion of the study remaining our goal. The low capital cost of the development significantly de-risks the project metrics and accelerates the project time- line”.

Great Boulder Hopes Further Drilling Will Unlock Full Potential.

Great Boulder Resources [ASX: GBR] announced assays from the remaining seven RC holes at the Side Well gold project near Meekatharra in Western Australia. This report follows the original announcement on 19 October which included a best intersection of 7m @ 3.35g/t Au from 122m.

The RC program consisted of twelve RC holes for a total of 2,257m targeting strike extensions to mineralisation intersected in previous drilling. Immediately after this a 66-hole air-core (AC) program was completed for 6,166m, with east-west fences of holes drilled between the previous 400m-spaced lines to increase anomaly definition and provide information for future RC planning.

These results are approximately 2km north of the RC drilling and tested the conductive corridor highlighted in Doray’s 2013 Heli-TEM survey. Samples from the other 61 AC holes are expected to be received in the coming weeks (Figure 2).

Great Boulder’s Managing Director Andrew Paterson said that the initial results suggest Mulga Bill sits within a large mineralised system, with gold identified over more than 3km of strike and coincident with a deeper weathering profile and extensive shearing.

“These initial RC holes have given us a lot of information on Mulga Bill, particularly the rock types and alteration associated with the gold.

“Our air-core program covered more than 3km of strike which will be a valuable targeting tool for ongoing work. The southern-most line is 650m further south than any previous exploration drilling.

“The depth of weathering and variable shearing we’ve logged in the main corridor of Mulga Bill indicate this is a big system. We believe further drilling will be the key to unlocking its full potential.”

Red 5 Award Engineering, Procurement and Construction Contract.

Red 5 (ASX: RED) has advised that it has taken another key step towards the development of its 2.4Moz, 16‐year Life‐Of‐Mine King of the Hills Project (KOTH) in Western Australia, after issuing a Notice of Award for the Engineering, Procurement and Construction contract (EPC Contract) and the bulk earthworks for the Process Plant to multi‐disciplined mineral processing provider MACA Interquip (ASX: MLD).

The EPC contract and bulk earthworks – which encompass the KOTH processing facility, equipping of the bore fields, high voltage power distribution, workshop, warehouse and bulk earthworks – will be undertaken as a fixed‐price contract.

The Notice of Award provides for the immediate commencement of the design and procurement activities for the process plant as well as mobilisation of earthmoving equipment to site.

Red 5 Managing Director Mark Williams, said the award of the EPC Contract and bulk earthworks marked another important milestone for the Company as it prepares to make the transition to become a multi‐operational, mid‐tier gold producer.

“Our decision to award these key contracts and make commitments to significant long‐lead items prior to completing project debt funding reflects our confidence in the robustness of the King of the Hills Project,” Mr Williams said.

“Importantly, the commitments made to date are below budget for this stage of the KOTH Project, and should give our stakeholders confidence that we are well on track to progress the development of this major project, with production planned to start in June Quarter 2022.”

WA Government Launches Digital Resource for Jobs and Training.

The McGowan Government, in partnership with Western Australia’s resources sector, has launched a new digital resource to link Western Australians to jobs and training opportunities in the sector.

Premier Mark McGowan joined the Chamber of Minerals and Energy (CME) and Australian Petroleum Production & Exploration Association (APPEA) at the SkillsWest Careers and Employment Expo to announce the Working in WA’s Resources Sector webpage.

The online tool, accessed through Western Australia’s Jobs and Skills WA website, provides information on current and future training and employment opportunities in the resources sector, and advice on how they can be accessed.

The Working in WA’s Resources Sector webpage includes information on TAFE courses that have had fees reduced, with a focus on courses that relate to the resources sector.

Specific information on opportunities for Aboriginal people and women who are interested in working in the sector will also be available.

Premier Mark McGowan said:  “This new online resource will ensure Western Australians have all the information they need to prepare for a career in the resources sector.

“We have made it clear that employing workers from the eastern states is no longer viable for our State, and we want Western Australians to be trained for future jobs in the mining and oil and gas industries.”

Education and Training Minister Sue Ellery commented:  “There is such a diverse range of job opportunities in the resources industry and the McGowan Government has made training more affordable than ever.

“Working in WA’s Resources Sector is a fantastic tool to find out more about the industry and the training that is needed to kick start a resources career.

“I encourage all young people and jobseekers to check out the new web page and get into the city for the SkillsWest Careers and Employment Expo.”

Marvel Gold Successfully Rattles Tin for $5.7 Million.

Marvel Gold (ASX: MVL) has announced that it has received binding commitments to raise a total of $5.7 million (before costs) through the placement of 95 million shares at $0.06 per share to professional and sophisticated investors.

The Placement ensures the Company is fully funded to undertake a substantial growth-focused exploration program across its Mali gold exploration portfolio, with a focus on the Tabakorole and Lakanfla gold projects.

Managing Director Phil Hoskins, commenting on the capital raising:  “This is a fantastic time to be undertaking gold exploration in Mali, an underexplored and highly prospective country. The combination of Marvel’s exciting portfolio, focused exploration strategy, and well-credentialed team has seen a number of high-quality institutions join our register. Marvel’s strategy is to add value through exploration and discovery, a strategy supported by the well-documented decline in the mining reserves of global gold companies.

“Following this Placement, the Company will be fully funded to undertake systematic exploration programs with a primary focus on growing the 910,000oz Tabakorole mineral resource. We have also been encouraged by ongoing drilling at the Lakanfla Project which has proved the existence of a karst, which is a deposit model responsible for the 4.5Moz Yatela deposit 30km to the north of Lakanfla. With assays expected in December, this funding gives us flexibility to accelerate drilling should these extensive karsts prove to be mineralised.”

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.

Morning News Bites – September 2

In Today’s Morning News Bites for September 2. Former Facebook CEO says new ban on news ‘threatens all Australians’. China announces suspension of Barley imports from Australian CBH Grain. De Grey Mining Limited reports an update at the Hemi Gold Discovery. 

De Grey Mining Limited reported the following drilling update at the Hemi Gold Discovery, located approximately 60km south of Port Hedland in Western Australia. Recent drilling has delineated a highly brecciated and extensively sulphide altered subvertical intrusion. This new intrusion has been named Falcon, which has been intersected for over 1.8km in strike, up to 80m thick and to 200m below surface. The intrusion remains open along strike and at depth. Gold mineralisation defined over 1.5km in aircore drill assays with additional assays from drilling along strike is pending. Initial aircore results include a highlight of 21m @ 3.4g/t Au from 40m and 19m @ 2.1g/t Au from 68m.

Metalicity Limited announced the return of the drone magnetic geophysical interpretation for the DCC and Altona Trends from the Kookynie Gold Project in the Eastern Goldfields, Western Australia, approximately 60 kilometres south southwest of Leonora. The company has received all data and interpretations from the ultra-high-resolution drone magnetic survey. The results indicate 21 targets that have similar geophysical and structural settings to known mineralised areas. Furthermore, drilling is still being conducted, there are 24  drill holes remaining at the laboratory pending analysis, which is due imminently with further samples being dispatched periodically, for the Kookynie Gold Project. Commenting on the target generation, Metalicity Managing Director, Jason Livingstone said: “The Footprint of the Kookynie Gold project continues to grow with a further 21 targets across granted tenure being generated from this exercise, this is incredibly exciting.”

Wiluna Mining reports high‐grade results from a further 68 holes and 18,584m of resource development infill drilling at the Wiluna Mining Centre, WA. The Company continues to drill with six rigs currently on site. Infill drilling at Golden Age produces ultra‐high grades up to 880g/t. Milan Jerkovic, Executive Chair commented: The outstanding results provide confidence in our Mineral Resource and Reserve estimates as we release them on a rolling basis from September 2020 through to December 2020 and into next year.”

Strong new drilling results confirm potential to expand existing 4.1Moz Resource at King of the Hills for RED 5 Limited. Latest assays continue to emphasise the scale and quality of the King of the Hills Mineral Resource and opportunities for future Resource extensions, with results including 5.1m @ 56.4g/t Au and 19.2m @ 5.4g/t Au. Managing Director Mark Williams, said recent drilling at King of the Hills (KOTH) had delivered a host of excellent results. “This has been a highly successful drilling program that has both increased our confidence in the existing 4.1 million ounce KOTH bulk Mineral Resource model as well as identifying targets for future Resource growth.”

Further strong assay results from recent aircore (AC) drilling at the East Lynne prospect for Kin Mining, located 3km north-east of the proposed plant site at its Cardinia Gold Project, located near Leonora in Western Australia. The latest East Lynne results confirm mineralisation over 1.3km of strike length. Highlights include, 20m at 0.96g/t Au from 20m, 4m at 2.21g/t Au from 20m and 12m at 1.28g/t Au from 12m. Commenting on the latest drill results, Managing Director Andrew Munckton said:  We are eagerly awaiting results from the remaining eight lines of this broad-spaced AC program to get a clearer sense of the potential scale of this target ahead of follow-up RC drilling.