Ubridge Group Mineral Industry Com- Luke Graham tanium minerals for over 20 years.
pany signing a binding sales agreement GR Engineering Services Ltd was
for 100% of ilmenite produced from Fun- 147mt @ 3.1% total heavy mineral sands
goni, which followed the zircon-mon- Tajiri project, while Strandline has also appointed to conduct process and non-
azite sales agreement locked in with kick-started a DFS on the Coburn project process infrastructure design and over-
Hainan Wensheng High Tech Materials in Western Australia. all DFS compilation at Coburn to help
Company. Strandline work towards a development
Coburn hosts 979mt @ 1.26% heavy decision.
Depending on market conditions, Fun- mineral sands with reserves of 308mt
goni is a 7-8 year prospect for Strand- @ 1.2% heavy mineral sands, which is “We have a good strategy at Coburn;
line, however, the company is planting projected to produce zircon and high ti- it is significantly undervalued for what is
deeper roots in Tanzania. in the ground. We will be building aware-
ness of us and our projects in the next
“We are spending more money than six months because we haven’t been ed-
ever in country, with Rio [Tinto Ltd] to the ucating people on our portfolio, we have
south and us to the north, plus the DFS, been building it instead,” Graham said.
we’ve probably done the most amount of
exploration for mineral sands globally in “The scoping study on Tajiri with more
the last 12 months,” Graham said. resources is exciting and Coburn is go-
ing through a DFS in our own backyard.
“Our portfolio there is 20, 30, 40 The market has moved since when Co-
years...starting with Fungoni then Baga- burn was in construction during 2012/13,
moyo and Tajiri.” the urgency of the market to want Co-
burn mineral is critical and that has gone
The company has a JV with Rio Tinto in our favour in the last five years.”
in southern Tanzania, while it builds its
own set of large scale resources in the Graham said off-take discussions
country’s north at the likes of Bagamoyo would take place in-line with the
and Tanga South, where Tajiri is shaping DFS work at Coburn.
up nicely at the latter.
– Mark Andrews
The company recently re-jigged its ex-
ploration target at Tajiri after new thick
zones of mineral sands indicated poten-
tial for a significant resource increase.
A scoping study is under way at the
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 101
regional roundup latin america
Hardey tangos into vanadium
local mining authorities,” he said.
“The Government is very proactive
on mining and often that’s the time to
act, when the local authorities are on
side, I believe.”
China supplies half of the world’s
global vanadium production, but that
output is in some doubt following new
regulations to double rebar require-
ments and polluting mines being shut
down. Forecasters believe those
changes will see vanadium output
drop by about 10% without the intro-
duction of new supply chains.
The steel industry is the largest
consumer of vanadium – around
90% – but the emergence of vana-
dium redox batteries as a renewable
energy storage alternative is set to
trigger a significant demand increase
in coming years.
“We’re in the infancy of what I be-
lieve will be a very long bull market
Hardey is set to acquire the Nelly vanadium mine in Argentina for resources because they are go-
ing to be the key ingredients for this
It was the best of both worlds for Hardey of its strategic advisors. The company was alternative energy that everyone is
Resources Ltd when presented with the finalising its due diligence of the project at looking for,” Armstrong said.
opportunity to acquire the Nelly vanadium the time of print and appears more than
project in Argentina. likely to proceed with the acquisition. Hardey raised $1.37 million via an over-
subscribed placement earlier this year to lift
Vanadium prices have jumped more than Hardey forked out just $75,000 to review its cash position to just over $2 million prior
200% since 2016 on the back of a global the project and should it proceed with the to the acquisition of Nelly. Some of those
supply bottleneck and rising demand re- acquisition as expected the company will funds will be tipped into initial exploration in
lated to the battery and renewable energy issue 737.5 million shares at an issue price Argentina and the rest will be directed to the
sectors. of 0.4c/share to the vendors. A further 737.5 company’s other projects in Australia. Put-
million options exercisable at 2c/share on or ting together a JORC-compliant resource
Meanwhile, investors have also flocked before April 30, 2020 will also be issued. for Nelly is the immediate priority for Hard-
to Argentina in the past two years following ey, which unveiled a maiden resource of
President Mauricio Macri and his mining- “One of our agendas has been to look 1.59mt @ 1.35 g/t gold for 69,000oz for its
friendly administration’s rise to power. outside the box for something that has po- Grace project in Western Australia’s Pilbara
tential to become a flagship project,” Arm- region earlier this year.
Therefore, taking on the historic Nelly strong said.
mine in Argentina’s San Luis province was Further drilling is planned for the Septem-
a no brainer for Hardey, especially when it “We’re looking for projects that stack ber quarter, with the company announcing
became clear the mothballed project could up in the current environment and the fact an exploration target of 2.2-2.8mt @ 0.9-
be reactivated in quick time. it looks like you can turn the lights on and 1.8 g/t gold for 64,000-117,000oz for the
start mining in a pretty reasonable fashion upcoming extensional work.
“We’ve done a bit of research on the Ar- without a massive amount of expenditure
gentinian mining regulations and it all looks was one of the attractive parts of it.” Drilling has resumed at the Burraga cop-
like a reasonably simple process,” Hardey per project in New South Wales, with the
director Robin Armstrong told Paydirt. Hardey’s initial evaluation of the project current focus being the historic Lloyd’s cop-
“You’ve just got to dot the i’s and cross the revealed the mothballed mine could be re- per mine. Environmental studies are also
t’s, so to speak, and you should end up in activated within 12 months of the company under way as the company looks to fast-
the right place.” defining an economically viable resource track its progress.
and if the renewal process is expedited, ac-
Nelly was historically mined for base cording to current Argentine mining laws. “Burraga is similar in a lot of ways to the
metals between 1949 and 1957 and has re- mine in Argentina,” Armstrong said. “It was
mained shut since. Minimal vanadium was Armstrong said the company had con- mined for many years and shut down a few
extracted during that period due to the rudi- sulted other Argentine-focused resources years back, but it’s produced the largest
mentary technologies employed. groups, including Chris Gale’s Latin Re- amount of copper in NSW historically. It’s a
sources Ltd, before making a formal move similar kind of concept in a strange sort of
Historic channel sample assays have on Nelly. way.”
returned grades of up to 1.9% vanadium
pentoxide and additional polymetallic for “A couple of people that I know reason-
copper, lead, silver and zinc. ably well who are in that South American – Michael Washbourne
Nelly was presented to Hardey by one area have had very good results with the
Page 102 AUGUST 2018 AUSTRALIA’S PAYDIRT
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 103
Minding your step
in Latin America
Leading intelligence to water and anything
Market Intelligence else they can make a
(AMI) has urged com-
panies entering cer- case on.”
tain Latin American
mining jurisdictions to Piet said it would be
carefully consider the
level of local commu- interesting to see what
nity activism arising
before their arrival. unfolded in Colombia
In its 2018 forecast under president-elect
for Latin America, AMI
highlighted govern- Ivan Duque’s rein,
ments in Argentina,
Ecuador, Peru, Brazil particularly regarding
and Guyana as re-
embracing mining in- mutualisation of min-
vestment, however, it
also noted that, more ing royalties.
broadly across the re-
gion, power was shift- There has been
ing into the hands of
local communities, posing potential risks conjecture in-country
about how royalties
Reasons identified by AMI for the shift
in investor risk from “the presidential pal- are dispersed, with
ace to local communities” include an in-
creasing amount of communities feeling every single province
short-changed by national governments
and greater reach of the awareness of benefitting to the ire of
community issues via the rising use of
smart-phones. the mining communi-
Therefore, some national govern- ties directly affected.
ments have seen their authority weak-
ened in the mining space and some lo- “Now with Duque
cal communities become uncontrollable
forces. Local communities in Latin America have a greater handle coming back, accord-
Of course, there are many jurisdictions on their mining sectors than ever before ing to his platform in
in Latin America and not all issues are
the same across the region, however, the presidential cam-
AMI infrastructure, energy and natu-
ral resources senior director Remi Piet in terms of who is going to be your envi- paign, a return to 50% of the royalties
told Paydirt companies needed to be
fully aware of the environment they were ronmental lawyer and who will be doing to be dispersed exclusively in the min-
the referring, that is probably the No. 1 ing districts, the capacity to have an an-
“The situation in Latin America is that
companies are much more prone to thing in Latin America to be mindful of.” ticipating payment of royalties, meaning
litigation from communities than is the
case in Africa, for example,” Piet said. Piet said a number of companies had paying royalties ahead of time and funds
“There is the potential to be facing a faced extortion attempts as perfect com- to immediately go into infrastructure pro-
halt in operations and potential cancella-
tion of concession rights because of an pliance in the process of accessing to jects on the ground [are some potential
oversight by one of your team in environ-
mental regulations or submitting the right water, for instance, was not adhered to, changes],” Piet said.
paper at the right time. You want to be
extremely cautious of who you work with forcing companies to re-do entire as- “Not only mining, but all extractive sec-
sessments and licence-to-operate ac- tors, the oil sector included, have been
tivities. impacted so you do have a different ver-
Therefore, Piet said, it was best prac- sion of this phenomenon in Colombia.
tice to understand “loud and clear” just That is a big thing there and I think that is
who the particular actors were before something that any Australian company
entry. will have to integrate in their planning.”
“You need to understand the political Piet used the example of South32 Ltd,
game locally and what other level of lev- which faced a series of litigations and
erage political activists have on conces- was forced into some payments by a lo-
sions. Understanding that local actors cal judge for not properly integrating the
are usually much more powerful in Co- indigenous community into its mining op-
lombia than they are Ecuador, for exam- eration, as proof of the power taken by
ple, to determine the level at which you local communities in the mining sector.
want to be engaged,” he said. “This decision was not at the federal
“You always want to make good rela- level, it was at province level and Colom-
tions with political actors obviously, but bia is a very specific country because
you want to be more cautious in Co- the capacity of enforcement from the
lombia than Ecuador, for example. The Government is much lower than in other
second thing is the level of engagement countries,” Piet said.
is very high in Latin America, especial- “You have to be able to integrate both
ly in terms of legal understanding. The the federal political level, but of course
[actors] are usually very good lawyers the local level and all the non-govern-
themselves, so they are going to be mental actors, not only NGOs, and also
looking at any kind of small errors you be wary of organised crime that uses
have made in your processes – access gold to launder the money.”
Page 104 AUGUST 2018 AUSTRALIA’S PAYDIRT
Hot Chili spurring
into San Antonio
It was an opportune time for Paydirt to Hot Chili reported it was encouraged the El Fuego project Hot Chili has added
visit Hot Chili Ltd’s San Antonio project by the results at San Antonio, which to its stable in recent times and they are
in Chile last month. historically produced 2mt @ 2% copper critical in the company’s copper strategy
and 0.3 g/t silver up until the mid 1960s. in Chile.
The company was amid a 5,000m RC
drilling campaign during mid-July at San The company entered a four-year op- The company has had a strong foot-
Antonio, part of its new El Fuego cop- tion agreement on San Antonio late last hold in Chile for some time now having
per project, and at the time of print had year and has started to apply modern gained recognition for its existing large-
reported some success. exploration techniques on a site devoid scale Productora JV with CMP (20%).
of such methods for the past 50 years.
First results from the campaign con- A PFS on the Productora copper pro-
firmed continuation of the San Antonio “We’ve needed to search for projects ject has been completed, with a 10-year
Main Lode, which remains open along and go back to the roots of high-grade open pit mine life producing 66,000 tpa
strike and at depth. projects,” Hot Chili country manager copper and 25,000 ozpa gold the bench-
Jose Ignacio Silva told delegates at the mark from a resource of 237mt @ 0.48%
Significant intercepts included 19m @ Investing in LatAm Mining Cumbre in copper, 0.1 g/t gold and 135 ppm molyb-
2% copper from 61m down-hole (includ- Santiago, Chile, last month. denum.
ing 11m @ 2.4% copper); 15m @ 1.7%
copper from 80m down-hole and 13m “We’ve found some good cheap pro- With the high-grade El Fuego copper
@ 1.3% copper from 17m down-hole (in- jects that have had some drilling done on projects in close vicinity they essentially
cluding 5m @ 2.3% copper). them now.” provide Hot Chili with a sweetener for
Furthermore, visible wide zones of In addition to drilling at San Antonio,
strong copper sulphide mineralisation work was also under way at the high- “Productora is to be the production
were confirmed in another 10 holes, with grade Valentina copper mine, 5km north centre of these mines,” Silva said.
assays pending at the time of print. of San Antonio, with Hot Chili excited to
follow up on a historic end-of-hole hit of – Mark Andrews
Drilling also outlined major extensions 11m @ 2% copper, including 7m @ 2.7%
to San Antonio, indicating the potential copper from 120m down-hole. For the full story on Hot Chili see the
for a shallow high-grade resource over a September edition of Paydirt
strike of 700m. San Antonio, Valentina and Lulu form
Hot Chili country manager Jose Ignacio Silva at the high-grade San Antonio project, northern Chile
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 105
regional roundup europe
ASX fires up Black Dragon
Black Dragon Gold Corp is set to trade Black Dragon’s Salave project hosts a 6.5mt @ 4.5 g/t gold for 944,000oz resource
its TSX-V listing for a berth on the ASX.
Australian high net worth investors and we believe after this capital raising we will “Given the grade we have, it is likely to be
institutions played an instrumental role in have the requisite number to commence a very economic project but we need to do
recapitalising the Spain-focused gold de- that [delisting] process,” Cronin said. a PEA and a PFS which will all be done in
veloper last year and have convinced the the next few months and then we’ll obvious-
company’s board its future lies on a differ- “It does take time, it’s not something we ly make our applications for environmental
ent bourse. can do very quickly, but the intention is to permitting and look to construct the project
eliminate the cost of having that TSX listing. mid-next year.
Led by respected mining executive Paul We probably want to keep our Canadian
Cronin, Black Dragon is seeking to raise incorporation because the company has “It’s quite a near-term production oppor-
up to $6 million via an IPO and float on the quite a lot of tax losses that we want to use tunity and that really is the result of the huge
ASX early this month. in the future.” amount of historical work that’s been done
on the project.”
“The company has been listed on the Hartleys Ltd is lead manager of the IPO
TSX since 2010, but it has been pretty much and Bellanhouse Lawyers is the consulting Cronin said the funds raised from the
inactive since 2014 and its stock trades by ASX listing advisor. IPO would see his company through the
appointment,” Cronin told Paydirt. feasibility and permitting phases until a fi-
Cronin, who is well known to Australia in- nal investment decision needs to be made
“When we recapitalised the company in vestors from his previous role at the helm on project financing early next year. Black
June last year, about 70% of those funds of Turkish uranium hopeful Anatolia Energy Dragon holds a 34sq km package of tene-
came out of Australian high-net worths and on top of his recent involvement in the ments in Spain, of which less than 5% have
and institutions and they have had a de- ASX listing of zinc explorer Adriatic Metals been properly explored, something which
sire to take the company to the ASX. Ltd, is confident Black Dragon has nailed Cronin believes only adds to the upside of
the timing of its IPO. the Salave project.
“We also obviously understand the ASX
a lot better in terms of how to make a stock “Black Dragon has all the characteristics “We’re definitely an interesting one to
work there and trade there. Probably more to be a successful IPO and certainly the watch,” he said. “There’s going to be some
importantly, the ASX has a lot of gold pro- book build that started [last month] is indi- drill holes that will definitely get the market
jects that are in a similar sort of develop- cating that,” he said. “We’ve had a lot of in- excited and they’ll quickly understand the
ment phase to us, but none that really have terest from institutions in London, New York potential that we’ve got here, not only in
our grade or profile.” and Australia, as well as some really good terms of its near-term production profile but
support on the retail side from Hartleys.” also in terms of its exploration potential.”
Black Dragon’s flagship asset in northern
Spain is Salave, which is considered to be More than 68,000m of drilling has been Cronin said the Asturias region which
one of Europe’s largest undeveloped gold completed over the Salave project, about hosts Salave was one of the most promising
projects. Salave hosts a measured and in- 40km from Orvana Minerals Corp’s 65,000 districts for near-term mining opportunities.
dicated resource of 6.5mt @ 4.5 g/t gold ozpa El Valle gold mine. Limited drilling has Spain is experiencing somewhat of a re-
for 944,000oz. The company is currently been done outside of the main resource sources renaissance at the moment with the
working on a resource update due later this area, which remains open at depth, with the likes of Atalaya Mining plc (Touro) and Grupo
quarter following the end of a drilling cam- deepest hole to date down to 300m. Mexico (Aznalcollar) looking to revive some
paign which returned some very positive of the country’s historic copper projects.
initial results. Black Dragon has also entered into a co-
operation agreement with PanTerra Gold Australian companies such as Berkeley
Following its listing on the ASX, Black Ltd to explore options for the potential treat- Energia Ltd, Highfield Resources Ltd and
Dragon intends to exit the TSX-V should ment of refractory ore from Salave via a Infinity Lithium Corp also have strong foot-
the company meet the conditions to do so. new Albion/CIL processing plant. holds in the country.
“It really comes down to the number of “All of these things we believe will sub- - Michael Washbourne
shareholders you have left in Canada and stantially improve the economics of the pro-
ject,” Cronin said.
Page 106 AUGUST 2018 AUSTRALIA’S PAYDIRT
Emerald licenced to mine
With Cambodia’s first industrial min- ground before the next wet season next environmental contract for the project.
ing licence firmly in its pocket, Em- year because we’ve said to the market in However, the environmental rezoning of
erald Resources Ltd is looking to finalise the past we hope to be in production by the area which hosts the project threw a
a debt funding solution for the Okvau gold about the end of 2019, or early 2020.” spanner in the works.
project as soon as possible. Hart, who was instrumental in financ- Support from long-serving Cambodian
Emerald has set a soft target of No- ing and overseeing mine developments Prime Minister Hun Sen, who was set
vember – typically the start of the dry for Equigold and Regis Resources Ltd to be re-elected at the time of print, ulti-
season in Cambodia – to secure project during the last decade, said he was mately proved crucial in the project being
finance so it can begin early site works having to look further afield for project rezoned and an industrial mining licence
such as road access in a bid to remain on finance for Okvau due to the unknowns being granted.
schedule for the planned first gold pour associated with building Cambodia’s first “If he didn’t get the green light to ap-
from Okvau in late 2019/early 2020. commercial mining operation. prove the industrial mining licence we
A potential debt financier with invest- Okvau was last month granted the coun- wouldn’t have one,” Hart said.
ment committee approval has been iden- try’s first ever industrial mining licence, “He’s very supportive of industry in
tified, but Emerald is continuing to pur- which is for an initial term of 15 years and Cambodia and he’s pushing for growth in
sue other funding arrangements offering has two 10-year renewal options. the country which has had something like
better terms and flexibility. “The lines of financing we’ve arranged 20 years of plus-7% growth and in par-
Last year’s DFS flagged a $US98 mil- in the past have been quite conventional, ticular the last 6-7 years have seen very,
lion capex to develop Okvau, which is but we’ve had to look a little bit further a very strong growth.
contained within the environmentally- stream for this one,” Hart said. “There’s an enormous amount of money
sensitive Phnom Prich Wildlife Sanctu- “We have a lot of debt funds and some being invested in Cambodia, but to date
it’s been a lot of tourism-related things
like hotels and a lot of Chinese money
for expatriate housing for holidays, etc.
“He wants to expand beyond that
and mining is something he would very
much like the country to have. He’s very
keen to have an international company
with some credibility to be the first one
to do a mining project in Cambodia and
he sees us as that company.”
Emerald is targeting a 2 mtpa opera-
tion producing 106,000 ozpa at an ASIC
of $731/oz over the initial 7.2 years of
mine life, based on a reserve of 14.3mt
@ 2 g/t gold for 907,000oz.
Once up and running, Okvau is fore-
cast to generate a post-tax NPV of
$US160 million, IRR of 40% and operat-
ing cash flow of $419 million, with pay-
back of 2.5 years.
Geochemical programmes were on-
going at the time of print, with Emerald
keen to undertake drilling to convert
Emerald has been awarded an industrial mining licence for its Okvau gold project in Cambodia more resources to reserves once the
wet season is over.
ary but was recently declassed to a “sus- European banks that are keen to look at “We’ll get a lot more ounces for the
tainable use” zoning category to allow for it and we’ve got the door open to a few mine life in the short term if we convert
future sectioned mining activities. banks at present. We’re just trying to cov- more resources to reserves because to
Emerald managing director Morgan er all bases I suppose to make sure we date we’ve only converted 9% of the cur-
Hart said his company wanted to be well get the best deal for shareholders. rent indicated resource to reserve.
into construction of Okvau before the “The fact the licence has taken us six “Every other anomaly we’ve got around
start of the next wet season in April. months longer than we wanted has prob- the district itself will get drilled and as-
“It’s not a massive wet season where ably given us more time to look at differ- sessed as time goes by. And as we get
we are – and we’re in the middle of it at ent avenues for debt and we’ve obviously a foothold into production in Cambodia,
present – it’s about 1.8m of rainfall per been canvasing the general funds that we’ll be the obvious choice for most com-
annum, but you don’t want to be do- have backed myself and the other direc- panies to come and talk to about poten-
ing your earthworks and your concrete tors in the past for support.” tial processing of something nearby, or
[pouring] during that period of time,” Hart Emerald had been hoping to obtain a JV to do more work, because we will
told Paydirt. its mining licence for Okvau as early as have the facilities in place.”
“It’s about getting the steel into the last December following the award of an – Michael Washbourne
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 107
Oklo strikes and expands Sandfire finds a spark
at Morck Well
Oklo Resources Ltd has received fur-
ther outstanding gold intersections from Follow-up diamond and RC drilling has
drill testing of the near-surface oxide and been completed by Sandfire Resources
deeper primary mineralisation within the NL at the Morck Well JV with Auris Miner-
high-grade central portion of the Seko als Ltd.
Anomaly SK2 in Mali.
One diamond hole and three RC holes
High-grade oxide intersections includ- were drilled in light of aircore results of 11m
ed 29m @ 12.27 g/t from 1m (including @ 3.5% copper, 6m @ 1.3% and 9m @
8m @ 36.9 g/t from 7m) and 19m @ 3.61 2.3%. Assays were pending at the time
g/t from 41m (including 10m @ 5.68 g/t of print, while a moving loop EM survey
from 43m). under way was designed to target more
High-grade primary gold intersections
included 51m @ 2.22 g/t from 180m (in- A total of 506 aircore holes for 35,450m has
cluding 17m @ 4.79 g/t from 196m); 12m been completed at Morck Well in Q2 2018.
@ 2.51 g/t from 124m (including 2m @
7.05 g/t from 126m); 22m @ 2.78 g/t from Oz/Minotaur excited by
207m, and; 5m @ 5.78 g/t from 236m. Eloise
Meanwhile, Oklo has added the Kos- Mick Wilkes Oz and Minotaur have expanded drilling
saya and Sari projects, both within 5km of at the Eloise JV, near Cloncurry
the its flagship Dandoko project, west Mali, underground, and its potential to contrib-
to consolidate its position in the country. ute to a further extension of mine life at JV partners at Eloise – Oz Minerals Ltd
the Waihi operation. and Minotaur Exploration Ltd – reacted
OceanaGold gold and quickly to drilling success at the copper-
silver rich in NZ “These drill results, albeit early in the gold project.
discovery process, are on par with un-
OceanaGold Cold has intersected derground targets being reported from Extra drilling was added to the pro-
further high-grade gold mineralisation drilling at our Martha project; a world- gramme at Eloise, near Cloncurry, after
along the East Graben vein at the WKP class multi-million ounce high-grade visible copper in every key hole from lat-
prospect in New Zealand after its latest gold deposit,” Wilkes said. est drilling was detected.
round of drilling.
Initial drilling of 5,000m has been com-
The campaign is part of a more exten-
sive ongoing exploration programme that
includes surface mapping and ground
Significant intercepts (true widths)
included 8.7m @ 24.54 g/t gold, 32 g/t
silver; 7.6m @ 10.84 g/t gold, 12.3 g/t
silver; 7m @ 11.15 g/t gold, 10.6 g/t sil-
ver; 1.2m @ 58.2 g/t gold, 49 g/t silver;
11.2m @ 5.82 g/t gold, 7.6 g/t silver; 9.8
m @ 4.53 g/t gold, 4.2 g/t silver; 1.2m @
35.49 g/t gold, 24 g/t silver.
OceanaGold president Mick Wilkes
said the latest drill results supported
the significance of the exploration pro-
gramme targeting high-grade ore from
Page 108 AUGUST 2018 AUSTRALIA’S PAYDIRT
Intermin keeps adding to the scope of the Teal project in Western Australia’s Goldfields
pleted, with an additional seven holes for 20m @ 4.57 g/t from 68m (including 8m “The first campaign of drilling has been
2,500m continuing at J1 and J2 North @ 8.38 g/t from 80m); 28m @ 2.43 g/t very successful. Broad-spaced drilling
where zones are open and drilling remains from 104m (including 8m @ 5.87 g/t from completed in May has yielded a large co-
widely spaced. 124m); 36m @ 1.19 g/t from 52m; 4m @ herent gold trend 4.5km-long and up to
3.24 g/t from 48m, 16m @ 1.24 g/t from 750m wide, along with multiple other high
New holes into the J1 conductor all hit 76m and 4m @ 1.29g/t from 108m; 18m priority targets in the Dead Bullock Forma-
copper sulphide mineralisation while the @ 1.75 g/t from 72m and 16m @ 1.81 g/t tion. The Hat target is emerging as a sec-
mineralisation at J2 North has been ex- from 32m. ond anticline sub-parallel to Capstan and
tended to at least 900m. remains wide open for potential extensions
The results confirmed over 250m of to the south,” the company told the market.
Binduli in-line at Teal strike with gold mineralisation remaining
open along strike and at depth. A total of The Hat gold trend has been extended
With resource drilling completed, Binduli 5,000m of drilling was planned within the 1.2km to the south, with significant results
now joins Teal, Anthill and Blister Dam as project area with 1m splits and further as- including 6m @ 0.24 g/t gold; 3m @ 0.31
a key project area for resource expansion say results expected in July and August. g/t and 6m @ 0.13 g/t, while at Capstan
and testing for new discoveries at Intermin East the gold trend extended 1.4km to the
Ltd’s Teal gold project in Western Austral- Prodigy in a trance south with hits of note including 3m @ 0.18
ia’s Goldfields. g/t and 1m @ 0.11 g/t to end-of-hole.
Final results from broad-spaced drilling
At the time of print, assays from 25 RC continue to extend large-scale anomalies The first diamond drilling at Capstan
holes returned significant down-hole inter- at Prodigy Gold NL’s Capstan project in is scheduled to start in the September
cepts, including 28m @ 3.3 g/t gold from Northern Territory. quarter.
56m (including 4m @ 15.1 g/t from 64m);
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 109
SIGNED, SEALED AND DELIVERED www.nucleussc.co.za
Systems received the largest share of
the funding – $2 million – to be directed
to development of software which could
potentially increase the efficiency of mine
Recipients of the METS Ignited Col-
laborative Project Funds are required to
secure equal or greater investment from
an industry partner, lifting the total value
of the eight projects to $17.4 million.
Emapper was one recipient of METS Ignited funding. Federal Minister for Jobs and Innovation CDE Global starts work
Michaelia Cash delivered the good news last month on Centrex plant
SIMPEC expands scope With these contract extensions, SIM- CDE Global will design and construct a
with MSP at Talison PEC has added $1.8 million to its order modular start-up wet processing plant for
book. Centrex Metals Ltd at the Ardmore phos-
WestStar Industrial Ltd’s engineering phate rock project in North West Queens-
contractor business SIMPEC Pty Ltd has Lucky eight win big land.
won a contract scope extension from from METS Ignited
MSP Engineering for the Talison lithi- The start-up plant will be a 70 tph circuit
um mine at Greenbushes, about 90km Eight mining supply businesses last and will be used to produce premium-grade
south-east of Bunbury. month received $7.14 million worth of in- phosphate rock concentrate to be delivered
novation funding from METS Ignited. to potential customers for off-take discus-
The expanded contract scope is a key sions. A mobile crushing circuit will also be
milestone for SIMPEC, which is already The eight recipients will now be able part of the set-up.
supplying high voltage and fibre optic ca- to launch collaborative industry projects
bles to the mine’s Chemical Grade Plant intended to deliver advanced solutions CDE Global has begun detailed design
2 project, via a sub-contract from MSP. to a variety of mining challenges, while for the start-up plant, with fabrication target-
contributing to the growth and capability ed for late 2018 following the completion of
MSP is the head contractor for the de- of the METS sector. a feasibility study due this month. The plant
sign and construction of CGP2, which is is scheduled for commissioning next year.
set to more than double the capacity of The funding is part of a four-year, $15.6
the Talison lithium mine to 1.34 mtpa lith- million commitment made by the Depart- The 70 tph plant will be designed as an
ium concentrate. CGP2 is due for com- ment of Industry, Innovation and Science oversized module so it can eventually be
missioning in the second quarter of 2019. to incentivise collaboration and address upgraded to a 140 tph circuit for the pro-
METS sector priorities. posed full-scale 800,000 tpa concentrate
SIMPEC has actively tendered several operation at Ardmore.
scopes of work with MSP over the past Recipients included IMDEX, The Uni-
six months at Talison and other projects versity of Western Australia, Manufactur- CDE Global will deliver the plant on a
in Western Australia, including at Iluka ing Intelligence, Emapper, Energetique turn-key basis, with pricing to be finalised
Resources Ltd’s Cataby mineral sands Mining Vehicles, Qtec, Resolution Sys- on completion of the detailed design.
project where the accommodation facili- tems and Micronised Mineral Systems.
ties contract recently increased in scope Swick move on drilling
to the value of $300,000. South Australia-based Resolution contract renewals
Swick Mining Services Ltd’s order book
is set to double to more than $160 million af-
ter renewing two key contracts last month.
The drilling services provider has been
retained by Northern Star Resources Ltd at
the Jundee gold mine in Western Australia
Nucleus Mining Logistics
Providing turn-key logistics and supply chain solutions into Africa
Page 110 AUGUST 2018 AUSTRALIA’S PAYDIRT
where Swick currently has 10 underground underground mining services, including begin powering all of Amrun’s mine facili-
rigs turning full-time. mine development and production. About ties and associated infrastructure.
65 people will be employed directly by the
Under the contract renewal terms, Swick company, with initial works starting last The 15-year contract at Amrun Power
will remain at Jundee for another two years month. Station is Aggreko’s longest independent
with a possible two-year extension upon power project in Australia and includes a
mutual agreement. The initial scope of work Operations at Mt Colin, located between five-year option to extend.
is for 712,000m of underground core over Mt Isa and Cloncurry, have moved under-
two years, requiring potentially 12 rigs in the ground following the end of open-cut min- In Western Australia, Aggreko is working
first year and 15 in the second. ing in 2015. with Gold Fields Ltd to introduce renewa-
bles at the Granny Smith gold mine, exactly
Swick has been chosen as the preferred Barminco is no stranger to the region, two years after replacing the previous die-
contractor by the Bluestone Mines Tasma- having operated at the nearby Dugald sel power station with a high-speed, gas-
nia JV to provide underground diamond River zinc project for more than six years. fuelled reciprocating engine station.
drilling services at the Renison tin mine
in Tasmania. Three Swick-operated un- Aggreko will introduce renewables alongside existing gas gen sets at Granny Smith
derground diamond rigs are currently em-
ployed full-time at the mine. Aggreko locks in long- Aggreko won the contract to build and
term power for Amrun operate the 21MW power station in 2016
The expected term of the contract is for and has since worked with Gold Fields
an additional two years with a possible two- Aggreko has successfully commis- on plans to provide 7.3MW of solar power
year extension upon mutual agreement. sioned a new 20MW permanent power generation, as well as a 2MW/1MWh bat-
Swick has been providing underground station at Rio Tinto Ltd’s $2.6 billion Am- tery system, to be integrated with the exist-
core drilling services at Renison since 2009. run bauxite project on Queensland’s Cape ing gas supply as a hybrid power station.
Both contract awards are valued at more Since acquiring battery storage com-
than $80 million combined. The station includes 22 diesel genera- pany Younicos last year, Aggreko has
tors and four transformers and is now able brought together multiple technologies
Meanwhile, Swick has secured its first to export permanent power to the high and power sources to support off-grid ap-
commercial agreement for the company’s voltage network. plications at remote mine sites.
Orexplore mineral scanning technology.
Over the coming months, the facility will
Core from Saturn Metals Ltd’s Apollo Hill
gold project will be scanned by Orexplore’s
patented GeoCore X10 core scanning ma-
chine and technology.
Orexplore laboratory services agree-
ments are based on recurring three-month
terms whereby clients can provide core at
their discretion, with the first 1,000m of core
scanned at a standard rate and a 20% dis-
count applying thereafter.
Barminco ties ribbon
Barminco Holdings Ltd has been select-
ed as the preferred underground contractor
for Round Oak Minerals Pty Ltd’s Mt Colin
copper mine in North West Queensland.
The four-year contract, valued at about
$95 million, includes a one-year extension
Barminco will provide the full suite of
Nucleus Mining Logistics provides high levels
of service to clients seeking world-class
supply chain management solutions.
greenfield exploration / construction projects / operational logistics
+27 (0)71 6788184 [email protected] www.nucleussc.co.za
AUSTRALIA’S PAYDIRT AUGUST 2018 Page 111
comings and goings
Kevin Joseph has resigned (Brett) Tang as a director. Peter Benjamin has retired Phopshate developer Fer-
as an executive director of A qualified lawyer, Tang is a as managing director of toz Ltd has appointed
Kogi Iron Ltd. The company registered fund manager with Kalamazoo Resources Ltd. Stuart Richardson as a non-
is undertaking a search for the Asset Management Asso- Chairman Luke Reinehr has executive director. Richard-
a replacement to oversee its ciation of China and was pre- agreed to step in as interim son has more than 35 years
Nigerian operations. viously an executive director chief executive while the of experience in stockbroking
of state-owned Yunnan Gold company searches for a re- and investment banking both
TNG Ltd has appointed Mountain Ltd. He is also a di- placement. Meanwhile, Paul in Australia and overseas.
Jason Giltay as general rector of Stonewall’s largest Adams has joined the compa-
manager, commercial. Gil- shareholder, Tasman Funds ny’s board as a non-executive Travis Schwertfeger
tay has spent more than 17 Management. director and John Collier has
years specialising in corpo- been appointed senior techni- Travis Schwertfeger has
rate finance and commercial Leonard Math has departed cal consultant for the Wattle been appointed chief op-
management, including 13 as company secretary Gully gold project in Victoria. erating officer and group ge-
years in the mining industry, and chief financial officer of ologist for Titan Minerals Ltd.
and was part of the team that Gulf Manganese Corporation Robert Waring has been Schwertfeger recently transi-
delivered a $300 million pro- Ltd now that its operations appointed company sec- tioned from managing direc-
cessing plant upgrade and are predominantly Indonesia- retary of Cobalt Blue Holdings tor to non-executive director
mining start-up for the Wind- based and its finance and Ltd following the resignation with Alicanto Minerals Ltd, but
imurra vanadium mine. governance requirements in of Ian Morgan. will continue to consult to the
Australia are limited. Guyana-focused company on
Fenix Dong has been ap- Susan Hunter has replaced a part-time basis.
pointed an executive di- Experienced exploration Rubini Ventouras as com-
rector of Frontier Resources geologist and pegmatite pany secretary of BCI Miner- Patrick Tan has succeeded
Ltd and will be responsible expert Peter Spitalny has als Ltd. Dean Calder as company
for the company’s day-to-day joined Ardiden Ltd as a non- secretary of Venus Metals Ltd.
operations. executive director. Spitalny Ramelius Resources Ltd
recently completed investiga- has appointed David Klaus Eckhof
Bill Cunningham has joined tions for AVZ Minerals Ltd on Southam as an independ-
Galena Mining Ltd as its its Manono lithium project in ent non-executive director. Klaus Eckhof has stepped
new metals marketing con- the DRC. Southam is a long-serving down as executive chair-
sultant. Cunningham has en- executive director of Western man of DRC-focused lithium
joyed an extensive career in Grant Davey Areas Ltd and has more than explorer AVZ Minerals Ltd
the industry, including selling 25 years of experience as a after four years at the helm.
and marketing non-ferrous Matador Mining Ltd has certified practising account- AVZ is yet to announce his
products within CRA’s lead- appointed Paul Crid- ant. Meanwhile, Kevin Lines replacement.
zinc division and WMC’s nick- dle as managing director has also been appointed the
el division and more recently and Grant Davey as a non- company’s chairman on a Geopacific Resources Ltd
with Sandfire Resources NL executive director following permanent basis, having filled has added Colin Gilligan
and Sirius Resources. the company’s acquisition of the role in an interim capacity to its expanding board as an
the Cape Ray gold project since the passing of Bob Ken- independent non-executive
Tom Eadie in Canada. Scott Patrizi and nedy in April. director. Gilligan is a mining
Patrick Walta have both re- engineer who has provided
Syrah Resources Ltd signed from the board as part Geoff Laing has been pro- leadership to a number of op-
founder Tom Eadie has of the corporate restructure. moted to the managing erations, EPC contracts and
been appointed chairman director’s chair at Aurora Min- development projects across
of Hill End Gold Ltd. Eadie Hannah Hudson has been erals Ltd. Laing, a chemical a range of commodities.
takes over from Graham Rev- appointed chief financial engineer, joined the company
eleigh, who will continue as officer and company secretary as chief executive in April.
a non-executive director until of Nzuri Copper Ltd, replacing
the sales of the company’s Anthony Begovich in both roles. Mark Connelly
gold assets are completed, at
which time he will step down Emu NL managing director Mark Connelly has re-
from the board. Greg Steemson has relin- signed as a non-execu-
quished his executive duties tive director of Ausdrill Ltd to
Stonewall Resources Ltd but will remain with the compa- focus on other business com-
has appointed Guyang ny as a non-executive director. mitments.
Page 112 AUGUST 2018 AUSTRALIA’S PAYDIRT
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Putting energy into NextOre
Copper miners can slash their energy Ore moves through the analyser, which uses magnetic resonance radio waves to rapidly
and water use for every tonne of met- identify high quality ore from waste
al produced thanks to a breakthrough ore
sorting analyser developed by CSIRO. oped, low-grade mines to be brought into It has an advantage over other ore sort-
production, so the economic benefits are ing analysers that can often only go “skin
Taking advantage of magnetic reso- huge.” deep” to detect mineral particles on the
nance technology, the analyser rapidly surface of ore, producing less reliable re-
identifies ore grade so large volumes of By illuminating batches of ore with short sults.
waste rock (gangue) can be rejected be- pulses of radio waves, magnetic reso-
fore it enters the plant, significantly re- nance penetrates through copper ores – In addition to copper, the magnetic res-
ducing the amount of energy and water much like medical MRI – to rapidly and onance analyser can be applied to gold
needed for processing. accurately detect ore grade. and iron-bearing ores.
The analyser is available to the interna-
tional copper market through NextOre, a
new company created by RFC Ambrian,
Advisian Digital and CSIRO. NextOre fol-
lows RFC’s and CSIRO’s successful Chrys-
os Corporation, which brought to market an
x-ray-based gold analysis solution.
“NextOre has identified 59 mature cop-
per mine sites where the analyser could
be applied to extend their life, capturing
35% of global copper production,” CSIRO
research director Nick Cutmore said.
“The solution could also enable undevel-
Adriatic 106 Fortescue 6, 16 Lucapa 50, 52 Rio Tinto 8, 16, 81, 101, 111
African Rainbow 68 Mako 27, 88 Round Oak 111
Albemarle 15 Matador 112 Roxgold 90-91
Metal Tiger 70
Alicanto 112 Galena 112 Minotaur
Geopacific 112 MMR 108
Apollo Consolidated 88 Glencore 38, 83 Mod 20, 23 Sandfire 108, 112
Goidel 76 26, 70 Saracen 26
Ardiden 112 Gold Fields 111 Newcrest Saturn 112
Golden Rim 26-27 Northern Star 6, 88 Solgold 6
Atalaya 106 Grupo Mexico 106 Nzuri South32
Gulf Manganese 112 38-41, 112 SQM 104
Auris 108 OceanaGold St Barbara 15
Oklo 108 Stonewall 26
Aurora 112 Orca 58, 108 Strandline 112
AVZ 18, 19, 112 Orvana 58 Syrah 100-101
Oz 26, 34, 36 76
Azumah 26-27, 96-97 112
BCI 8,112 Hardey 102 Panoramic 108
Highfield 106 PanTerra
Berkeley Energia 106 Hill End 112 Peak 4, 79
Hot Chili 105 Perseus 10
BHP 6, 16, 59, 68 Petra
Birimian 80-81 Prodigy 86-87
Progress 26-27, 60, 62
Black Dragon 106 Tando 82-83
Ramelius 7 Taruga 26
Black Rock 84-85 Iluka 110 Randgold 26, 88, 98-99 Tianqi 15
Bushveld 82-83 Independence 34 Resolute 109 Titan 27, 88-89
99 Toro Gold 112
Infinity Lithium 106 Tungsten Mining 99
Cardinal 26-27 Intermin 109 23, 39, 59, 88
Celsius 78-79 International Resources 83 107
Centrex 110 Ivanhoe 38, 40
Cobalt Blue 112
Jupiter 26, 31 Vale 68
Vector 18-19, 21-22, 25
De Beers 7, 50 Venus
Ekapa 7 Kalamazoo 112 94-95
Emerald 107 Kasbah 92
Emu 112 Kefi 66 West African 26
Endeavour Kidman 15 West Wits 31-32
Endiama 88 Kogi 112 Western Areas
50 Winmar 112
Latin Resources 102
Fertoz 112 Leichhardt 8 Yunnan Gold 112
Force 18-25 Loncor
Page 114 AUGUST 2018 AUSTRALIA’S
Page 116 AUGUST 2018 AUSTRALIA’S PAYDIRT