pd260-May18-mag web

committed to the JV. Having A 2,500m diamond drilling
spent $US5.5 million in the 18
months to December 2017, programme was started in
the Canadian gold miner has
approved the proposed 2018 October with maiden results
exploration budget, including
the 3,500m diamond drilling released in February pro-
programme at Xenopsaris.
ducing a best hit of 89m @
Schwertfeger said Alican-
to continued to be delighted 1.02 g/t gold from surface.
by the major’s presence at
Arakaka. All seven holes assayed

“They have until May 2020 to date have intersected
to complete the $US10 mil-
lion but they accelerated gold mineralisation. Alicanto
their spending last year,” he
said. “This is a big company said the drilling had also
exploration play and we are
doing a style of exploration a returned evidence of exten-
junior simply couldn’t do on
its own; exploring a big trend sive alteration “with wide-
and taking the time to evalu-
ate the best places to spend spread, high density quartz
the money.”
veining… indicative of a sys-
Schwertfeger’s only frus-
tration is that Barrick’s obvi- tem capable of multimillion
ous enthusiasm for Arkaka’s
multimillion ounce potential ounce gold resources”.
is not resonating with Aus-
tralian investors. While doz- Schwertfeger said once
ens of other explorers have
enjoyed robust market reac- the results from the re-
tions to indeterminate news
of cobalt, lithium and vana- maining four holes were re-
dium ground, Alicanto has
struggled to maintain market interest in ceived, plans for a follow-up
its story. Having opened the year with a
speeding ticket from the ASX after a 50% programme would be final-
increase on January 2, Alicanto’s shares
have failed to maintain momentum, fall- ised.
ing back to a 12-month low in early April.
“Once we get those final
“The market has certainly been work-
ing its way up the pipeline to earlier stage results from Ianna we will
stories but it’s still not quite there,” he
said. “If you’ve got some good in- prioritise the drilling for 2018
tercepts the market has appetite
for it but we are is still at the pre- for which we have budgeted
discovery stage. However, there
is no doubt we are in a good po- $1.5 million,” he said. “We
sition to take things forward and
hopefully the investors react to see major resource poten-
the next round of results.”
tial at the East Extension
Like a number of its South
American-focused peers, Alican- trend and the C-Zone intru-
to has found warmer interest from
North American investors. sion. We will spend $1.5 mil-

“Speaking to people at PDAC lion at Ianna. We still believe
in Toronto in March, they were
shocked by the size of the market Trenching has proven vital to building the structural picture there is potential for high-
cap,” Schwertfeger said. “There
is a bit more appreciation on the on Alicanto’s Arakaka gold project in Guyana grade shoots but haven’t
TSX, particularly for Guyana with
the success Guyana Goldfields found them yet. But at these
[Inc] has had there.”
ing footprint in the former British colony. widths it is economically viable as a mul-
Alicanto’s own confidence in
Guyana is reflected in its expand- The company picked up the Ianna gold timillion ounce bulk tonnage target.”

project – 25km south of Arakaka – in No- The next drilling programme will give

vember 2016 and doubled its landholding Alicanto a clear indication of the funding

to 115sq km in September 2017. needed to advance Ianna and Schwert-

Much like Arakaka, Ianna has the mak- feger said he was happy to employ a

ings of a big company project with min- similar model to Arakaka.

eralisation hosted in a composite diorite- “We had a lot of people look at Araka-

granodiorite intrusive body. ka and they are comfortable with Guyana

and comfortable with us as opera-

tors; so there is a lot of interest in

Ianna.”

If a deal is struck over Ianna,

investors could expect Schwert-

feger and Harden to begin look-

ing to restock the project pipeline.

“Both Ianna and Arakaka will

come to delivery points on re-

source drilling this year and on a

bit of success at either position

we will be positioned for more

M&A work,” Schwertfeger said.

“We are always looking at the big

picture of the Guiana Shield and

there is a lot happening in the

background where we are adding

value and building our geological

understanding of the region.”

– Dominic Piper

Travis Schwertfeger

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 51

LATIN AMERICA DOWN UNDER PREVIEW

Crusader aims for the sky

Anew chapter has begun for producer and a gold explorer and
Brazil-focused gold developer
Crusader Resources Ltd. we’re now making that jump from

Crusader completed a second- finder to grinder as we go down a
ary listing on London’s AIM ex-
change last month after raising new path.
$6.5 million from institutional and
other investors from both Austral- “I think we’ve all recognised the
ia and the UK.
future for Crusader was not in the
Funds from the placing will be
directed towards completing a iron ore game and I think we did
BFS on the advanced Borborema
gold project in Brazil’s north-east, an exceptionally good job of exit-
as well as exploration of the Ju-
ruena and Novo Astro projects in ing the iron ore project. The real
the centre of the country.
new direction for the company is
Crusader executive director
Paul Stephen said exposure to as a gold development story, as
cashed-up London investment
funds was the company’s best opposed to being a gold explorer.”
chance of pushing its suite of pro-
jects through to development. Earlier this year, Crusader rec-

“There was some interest, but alibrated the economics for Bor-
not overwhelming interest out of
Australia and what we found was borema, based on processing 2
that the much deeper UK market
is really complementary to what mtpa of an initial 20mt of the up-
we’re trying to do,” Stephen told
Paydirt. per lens of the main deposit over

“We’re trying to build gold mines at least a decade.
in Brazil and we found there was
some really good interest from Key numbers from that study
the funds in London. I think listing
over there gives us the opportu- included a pre-production capex
nity to access a lot more of that market.”
of $US93.4 million, AISC of
Stephen said about two-thirds of the
funds raised had come from the pockets $US908/oz, NPV of $US117.8
of London-based investors who sensed
now was the right time to invest in both million and IRR of 31%, using a
gold and Brazil.
$US1,300/oz gold price.
Crusader explored a number of options
to boost its chances of landing crucial A BFS on Borborema could be
project development funds, including a
failed merger with AIM-listed Stratex In- completed before year’s end.
ternational plc and a potential TSX float.
“It’s a very advanced project
“The logical home for most South
American projects is the TSX, but what and we’ll look to complete the fea-
we saw with London was a really deep
financial market that really doesn’t have sibility as quickly as we can now,”
that many good gold stories to invest in
and equally not many South American Stephen said. “Really there’s only
gold stories,” Stephen said.
a small amount of work left to do.
“We saw an open playing field where
there was an opportunity for us as a Funds from the recent $6.5 million placing will be We’ve converted from a wet tail-
company to be really quite unique and used to advance projects such as Juruena ings dam to dry stacked tailings
position ourselves in a deeper financial which is the way for the future for
market.
on gold and copper-gold. We’re entering mining as a whole. We’ve got to do some
“I have never made any secret of the
fact I would like Crusader to be a multi- an exciting new phase and there’s a lot test work to make sure that we’ve got
mine company producing from a number
of different projects. Our focus is clearly of blue sky in front of us and we’re really our numbers right on that, but I don’t see

looking forward to that.” anything changing too much.”

As well as the AIM listing, Crusader Stephen is also upbeat about the op-

has undergone a major corporate re- portunity to uncover more gold at the Ju-

structure with Marcus Engelbrecht com- ruena and Novo Astro projects, with new

ing on board as managing director and exploration work to be carried out in the

Andrew Vickerman stepping into the coming months.

chairman’s role, replacing Rob Smak- “We’ve had some quite spectacular

man and Stephen Copulos respectively. hits out at Juruena and in a lot of ways

It also comes nine months after the the upside is still unknown,” Stephen

company sold its only producing asset – said. “We could go and mine it today as it

the Posse iron ore mine, near Belo Hori- is, but I think it’s going to get a lot bigger

zonte – and returned Borborema to the and I don’t think it’s going to take us a lot

front of the queue as its flagship develop- of work to show investors that potential.

ment asset. “Personally I’m really excited about the

“Marcus and Andrew are both very ex- concept of getting a drill rig out to Novo

perienced mining guys and are going to Astro. We all want to put some holes into

bring a lot to the table given they have that project because there’s no question

been involved in building and operating of the upside there. That’s an untapped

significantly large gold mines,” Stephen gem and there isn’t anyone who has

said. looked at that project and doesn’t believe

“We’ve already seen the benefits of there won’t be a gold mine there.”

that experience and I think that’s why – Michael Washbourne
this is a really sensible path for the com-

pany to go down. We were an iron ore

PAGE 52 MAY 2018 AUSTRALIA’S PAYDIRT

Strike lights up again

Apurimac – one of the world’s high- Strike’s Apurimac is recognised as one of the highest grade,
est grade, large-scale magnetite de- large scale magnetite deposits in the world
posits – has been on the backburner for
Strike Resources Ltd for some time. “While the Government is pushing this with such projects in Peru.
railway, we see it in our interest to pull “DHHI supplies bulk handling equip-
However, a commitment from Peru’s the advancement of the project, too. The
Ministry of Transport and Communica- Government has the plans and good ide- ment for ports and iron ore mines, but
tions (MOTC) to assess the viability of as to advance it, but it is in our interest more importantly, they are very interest-
establishing a multi-user railway start- to help the project along, so we will do ed in getting involved in the end-to-end
ing close to Apurimac has rejuvenated whatever we can to work with the Gov- project – mine to railway to construction
Strike’s prospects of bringing the mine to ernment progress the railway and iden- to port,” Johnson said.
fruition. tify parties that we can work closely with
to help try and get this railway going,” “They are qualified to do that and
It is anticipated the MOTC pre-financ- Johnson told Paydirt. they have really good connections with
ing study will take about a year to com- Chinese groups. So I think you are see-
plete on a budget of $US10 million. “We are investigating putting together ing the first step or first party in a wider
an international consortium of parties consortium, which may include more
The proposed 570km railway will es- that have the technical and financial re- Chinese companies and maybe some
sentially connect the inland city of An- sources to make the railway happen. other companies as well to advance this
dahuaylas – 20km from Apurimac – in From our perspective, the railway and project.”
southern Peru to the export port of San the mine are linked and our project would
Juan de Marcona on Peru’s west coast. undoubtedly be the biggest user of the Johnson said the next major milestone
railway. The development of the mine, for Strike could be adding further part-
While the Andahuaylas railway is be- railway and port would need to go hand ners to the consortium, while restarting
ing billed as a multi-user facility and will in hand. Ideally, the day someone cuts work on the ground is also on the hori-
open up industries, such as agriculture, the ribbon on the railway will be the day zon.
in some of the poorer regions, Strike the shipment of iron ore goes out. The
stands to benefit a great deal from the last thing you want to do is have the rail- While the company has a big enough
infrastructure. way finished, but no mine to pay for it, or resource at Apurimac – 269mt @ 57.3%
vice versa.” iron (142mt @ 57.84% indicated and
A PFS on Apurimac updated in 2010 127mt @ 56.7% inferred) – Johnson is
indicated an estimated capex of $US2.6- Engagement with potential parties with keen to drill more.
2.9 billion to transport 20 mtpa of high- the clout to support such big projects has
grade concentrate (about 66% iron) via started and a boon for Strike has been a “Even though we have enough, if we
a slurry pipeline to the coast at operating signed MoU with bulk material handling went into production at our preferred rate
costs of about $US17-20/t. manufacturers, the $1.5 billion Dalian of 20 mtpa there is enough JORC-de-
Huarui Heavy Industry Group Co. Ltd fined resource for 10-15 years, but we’d
Trade-off studies concerning railway (DHHI) from China. like to obviously expand that out to 20
owned and operated by Strike were years,” he said.
also conducted with mining, process- After a meeting in late 2017, Strike and
ing and transporting 10-15 mtpa of lump DHHI signed a MoU in relation to the de- “We have always said we wanted to
and fines product estimated to cost velopment of Apurimac and associated expand resources to 0.5-1bt and we have
$US14.60-16.50/t. rail and port infrastructure in February. drilling programmes that could do that.
We’d like to recommence drilling on the
The initial PFS on Apurimac in 2008 The MoU signals the intent Strike is project and increase the indicated and
concluded the slurry pipeline the best showing to rejuvenate Apurimac and the inferred JORC resources through infill
way forward and with Strike market type of parties interested in engaging drilling.”
capped at $300 million and trading at $3/
share at the time, a significant offer was – Mark Andrews
on the table for a project the company
owned less than half of.

Unfortunately for Strike, things started
to unravel as a dispute with its local part-
ner disrupted discussions with the pro-
ject suitor and the deal fell apart. In the
meantime, the iron ore price tanked and
Apurimac has been at a standstill since.

Nevertheless, the downtime has al-
lowed Strike to move to 100% ownership
of Apurimac and the ball is now rolling
again in light of MOTC’s announcement
last December.

As Strike serves to be one of the great-
est beneficiaries of the railway line, man-
aging director William Johnson sees it fit
to assist in any potential funding structure
(public/private partnerships) which may
be required for the project to proceed.

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 53

LATIN AMERICA DOWN UNDER PREVIEW

Argosy starts plant ops

Argosy has an in principle agreement to earn an immediate 77.5% interest in the JV company, Puna Mining S.A.,
which owns the Rincon project. Argosy can potentially earn up to 90% interest in the project

First production of lithium carbonate million on hand to achieve designs of up With Rincon being in Salta province,
from Argosy Minerals Ltd’s Rincon to 500 tpa commercial grade LCE pro- part of the “Lithium Triangle”, Argosy
project in Argentina was expected at the duction from stage one and start stage will no doubt start to appeal to a similar
time of print. two works, which includes establishing crowd upon demonstrating the suitability
10ha of operational evaporation ponds of its product to battery manufacturers.
When Paydirt spoke with Argosy man- (completed), production wells, ongoing
aging director Jerko Zuvela last month, brine pumping, exploration drilling tar- The company has recently been busy
wet commissioning of stage one pilot geting resource delineation and progress putting itself in front of potential custom-
plant operations had just started, with the development of the plant to handle pro- ers in Japan, Korea and China, with
first batch of lithium brine concentrate for duction of 1,000-1,500 tpa LCE. Zuvela leaving meetings knowing end-
processing test works to produce about users are desperate for supply.
1-2t of lithium carbonate from Rincon. Zuvela said Argosy – market capped
at $280 million and trading at 30c/share “All of them need as much product as
Stage one pilot plant operations is a – had completed the “leg work” required they can get. We can give them a rep-
key milestone for Argosy, as it continues to get Rincon to the stage it is now, with resentation of our product in the near
on a fast-track path to develop Rincon refining the process to produce consist- future and with battery life and exper-
in Argentina’s Salta province, which has ent battery grade LCE to present to po- tise increasing every day, the demand
been identified as an area of economic tential off-takers/strategic partners the for quality product is not going away,” he
development by the Macri Government. next step. said.

“The near-term milestone for us is to Zuvela said it was a challenge to find “Whether it is the Europeans or Asians
produce battery grade lithium carbon- the right partner, but not impossible, they all want better quality batteries; they
ate,” Zuvela said. given the interest shown by the likes of want longer life, faster charge, better
POSCO and Ganfeng Lithium in Pilbara quality output and cheap to make it as
“Over the next few months we are Minerals Ltd and Toyota Tsusho Corp’s economic as possible. That is all down
working on putting out a JORC resource recent 15% strategic placement in Ar- to expertise and know-how to improve,
estimate and a PEA to outline the poten- gentine lithium brine-based supplier Oro- whether it is the 8-1-1 or the nine-half-
tial mine life and the successful nature cobre Ltd. half battery technology. All those big bat-
of our process. They are the two biggest tery manufacturers are working on that
risks in this sort of business – process Toyota’s interest in Orocobre plus technology as we speak and that is going
and mine life. Thereafter, I guess we are TSX and NYSE-listed Lithium Americas to keep improving.”
looking to commence stage two produc- Corp’s ability to attract a mix of equity
tion works later this year and maybe over and credit totalling $US285 million from – Mark Andrews
the course of the year looking for a stra- Gangfeng Lithium and Bangchak to fund
tegic investor too for stage three financ- stage one of its Cauchari-Olaroz project,
ing.” Jujuy, is the kind of attention lithium com-
panies are attracting in Argentina.
Having raised $17 million in October,
Argosy is well funded with about $13-14

PAGE 54 MAY 2018 AUSTRALIA’S PAYDIRT

Corona sweetener for Berenguela

Cobalt stories have dominat-
ed the mining space, but as
exciting as the Corona cobalt

discovery is shaping, Valor Re-

sources Ltd is conscious not to

overstate its importance.

“We are really keen and

eager to drill Corona and re-

ally flesh out what we have got

there. I think it has been really

well received, but I don’t want

to overstate it because to us,

this isn’t a cobalt story – it is

just not,” Valor chairman Mark

Sumner told Paydirt.

High-grade copper (2.79%)

and silver (431 g/t) mineralisa-

tion was confirmed at the new

project area of Corona in Feb-

ruary, with first assays returning

231 ppm cobalt and increasing

grades at surface associated The Corona discovery offers a nice cobalt credit to Valor’s Berenguela copper-silver project in Peru

with a significant geophysical

anomaly at about 100m. ally high quality credits in zinc, manga- nies to consider investing in Peru, which

“We have some outstanding met work nese and now we are looking at cobalt. would suit Valor well if Berenguela re-

that shows that cobalt could be a poten- It is a copper-silver story, but the other quires some heavy lifting in the future.

tially viable credit and something that we potential metal credits are very interest- “At this stage, what we expect the

could add to the circuit for very little in- ing and could be quite lucrative.” capex to be in the scoping study is not so

crease in capex and opex. It is effectively At the time of print, drilling was sched- large that a company like us wouldn’t be

just an extension of the [Berenguela] de- uled to start at Corona following a round able to put together a good group of insti-

posit; it is all the same style of minerali- of geological mapping and additional tutional investors and maybe a strategic

sation. We are seeing cobalt associated surface sampling to the south-west of the partner to fund it and build it,” he said.

with copper-iron sulphide so that is an project area. “We have the team to do it; Ernesto

interesting development,” Sumner said. Sumner said assays from ongoing Lima our COO has built mines all over

“That will be fleshed out in the next 2-3 sampling at Corona, extensions to Coro- South America, including the $US450

months and we will have something more na and Berenguela would be presented million Pirquitas silver mine in Argentina

definitive at that stage, but I don’t want to to market regularly, while a scoping study for Silver Standard Resources. But, we

overstate the cobalt story because it is a is not far off either, however, he said the are seeing a lot of interest from poten-

copper-silver story.” timing of its release could depend on an tial industry partners so it really will just

Corona provides a nice kicker to the agreement pertaining to off-take. come down to what’s in the best interest

Berenguela Central footprint Valor has Valor has entertained several parties for the shareholders because all of us in

focused on since acquiring the project 12 in off-take discussions for Berenguela management are significant sharehold-

months ago. material, with Sumner to weigh up an- ers.

While it took Sumner sometime to bring nouncing both scoping study results and “As we continue these discussions,

Berenguela into Valor’s stable, there has off-take MoUs to give both maximum im- which will be fleshed out in the coming

been little holding up resource definition pact in the market. couple months, I really don’t think the

work and in February a maiden meas- Interest in off-take for Berenguela ma- capex is so large that a company like us

ured resource of 7.71mt @ 1.6% copper terial appears to be matched by big com- couldn’t do it. Avanco [Resources Ltd] is

equivalent was announced. panies eager for assets in Peru, which a good example of a company that start-

Total measured, indicated and inferred jumped in mining investment attractive- ed with a $600,000 cash shell and took

resources are 45.92mt @ 1.27% copper ness, according to the Fraser Institute an asset all the way into production and

eq (0.5% copper eq cut-off). 2017 Survey. expanded it with more assets.

“We have 127 moz of silver contained Adding to the appeal of mining and ex- “I don’t think there is any reason why

and growing, with three-quarters of a bil- ploring in Peru is the Government’s will- Valor couldn’t do something like that, but

lion pounds of copper. We have grown ingness to reduce red tape and fast-track clearly we want to deliver value so it will

the resource by a little over 80% since the permitting process, which Sumner depend on what the best move is from

we got hold of the asset and we expect said was already starting to be seen in that perspective.”

to grow significantly from there,” Sumner country despite no new regulations being – Mark Andrews
said. enacted yet.

“We have a very unique copper-silver Sumner said the changes would pro-

deposit and we have some potentially re- vide further encouragement for compa-

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 55

LATIN AMERICA DOWN UNDER PREVIEW

Dempsey dips into Argentina

Dempsey Minerals Ltd has largely Dempsey is set to acquire private company Blue Sky Lithium and begin work on the
completed due diligence on Blue Sky Candelas project in Argentina’s revered Hombre Muerto salar
Lithium Pty Ltd’s mining tenements and
remains on track to become the third larg- you’re not the last decision-maker, but if mg/L and 750 mg/L and we could have
est player in one of Argentina’s premier you’re there while things are happening, something in between,” he said.
lithium brines basins. you can get results quicker.”
“Importantly, we have low impurities.
A notice of meeting is scheduled for Dempsey is hopeful of delineating a FMC has got one of the lowest impurities
May 4 where Dempsey shareholders are JORC resource by Q2 2019, with a pilot in lithium brines in Argentina and prob-
likely to approve the merger and capital plant to potentially be up and running by ably the world, and Galaxy is not far off.
raising to assist in advancing the tene- the end of next year. We think that we could be on the same
ments in the renowned Hombre Muerto trend.”
salar. Vargas de la Vega said the company
would explore all options for a pilot plant Vargas de la Vega, who was most re-
FMC Corporation (Fenix) and Galaxy at the project. cently an analyst for Patersons Securi-
Resources Ltd (Sal de Vida) are the larg- ties Ltd, likened the current lithium craze
est players in Hombre Muerto, which sits “There are a few things I’m reviewing to the iron ore boom which swept the
at the southern tip of South America’s and if I find a quicker way to produce lith- market in the 2000s, but expects the for-
“Lithium Triangle”. ium carbonate we will definitely explore mer to be far more sustainable.
it,” he said.
Blue Sky was founded last year by re- “When you look at how much iron ore
spected lithium analyst Juan Pablo Var- “We’ll also be looking at minimising our was produced from the early 2000s to
gas de la Vega, who is set to be appoint- carbon footprint, meaning that whenever current levels, the production of iron ore
ed Dempsey’s new managing director possible we’re going to be running solar is 2.5 times what it was,” he said. “When
pending the shareholder vote this month. power on site. We’ve got enough ground you look at the lithium industry, you can
for solar panels in our area and if we can see a multiplier of around 5-6 times,
Vargas de la Vega is eager to follow up come up with a solution to do all of this maybe more. And you only have to com-
on a patch of ground – the Candelas tar- based on solar technology, then why pare lithium production to a couple of
get – south of Galaxy’s tenements which not? years ago and see it’s 4-5 times the cur-
he believes has been overlooked during rent production.
previous exploration. “We are a lithium company and we
need to demonstrate we are not just an “It’s an industry, from my point of view,
“We are on the direct line north-south explorer and a potential producer. We that is still maturing and that is still not
where those drill holes [No.8 and No.16] need to follow the trends and if there is fully understood in terms of the applica-
were done and we are very likely on a an economic way we are going to do it.” tions. The last time we saw something
fault line where the river runs and con- similar is when the combustion engine
verts to the east part of Galaxy’s ground,” Dempsey recently collected samples got into the market and retired all the
he told Paydirt. from the northern end of Candelas which horses pulling carts.”
graded up to 59 mg/L lithium, which is
“The initial studies we found say the comparable to near-surface results of – Michael Washbourne
basin was understood to stop there, but 62.8 mg/L lithium reported on Galaxy’s
we have all of this ground next door and ground.
there is nothing to say there is no correla-
tion going back south to our ground. Vargas de la Vega said the project
ticked the two key boxes of high grade
“It’s just an imaginary boundary, not and low impurities.
a geological boundary. Our thesis is
that this continues and that’s what we’re “If you look at the grades of Galaxy and
chasing.” FMC, you will notice that we have poten-
tially high-grade lithium between 650
Dempsey is expected to perform geo-
physics on Candelas in a bid to prove up
Vargas de la Vega’s theory, with the pro-
gramme to test both the depth and the
resistivity of the area in question.

A maiden drilling campaign is not likely
to begin until Q3/Q4 2018 because of
permitting restrictions.

Vargas de la Vega expects to spend
plenty of time on the ground in Argentina
over the coming months to ensure any is-
sues are quickly resolved.

“Part of my job is to deal in a jurisdic-
tion that could be tricky at times, but as
with any problem that presents itself, if
you’re there you can quickly solve it,” he
said.

“If you’re doing it by remote control,
despite the best intentions of your team,

PAGE 56 MAY 2018 AUSTRALIA’S PAYDIRT

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No Gray area for Orinoco

Orinoco Gold Ltd’s new Orinoco has endured a frustrating run with the Cascavel gold mine in Brazil
board and management
team are geared up for one late last year when Crew, only a few don’t deliver, we don’t get paid.”
last crack at resolving the is- weeks into the job, had an idea to install Orinoco raised $12.1 million in late
sues which have plagued the an old hammer mill in the temperamental
Cascavel mine in Brazil for gravity circuit at Cascavel. March to drive its 2018 strategy which
almost two years. will see $5 million invested into the mine
“Richard, who has been operating in to ensure it meets the 5,000 ozpm pro-
Cascavel was once de- Brazil for 25 years, rang me just before duction target by year’s end.
scribed as the highest-grade Christmas and said, ‘I think I’ve worked
gold project in the world not out the problem’,” Gray said. A further $3 million will be tipped into
in production, but since the exploration work around Cascavel, in-
keys were first put in the ig- “He pulled out a hammer mill that the cluding at the Sertão, Tintiero, Antenna
nition in mid-2016 the mine old guys used four years ago and turned and Eliseo prospects.
has failed to deliver on its it on and every day for a week he was
hype. running 1-2t through it and recovering as While Gray is excited about resuming
much as 60 g/t, which is what we always drilling at Cascavel after a long hiatus, he
Orinoco has raised about thought this mine would do. acknowledged shareholders just wanted
$40 million over the past to see the mine producing high-grade
three years, yet the mine “That was the best news I’d heard in gold without any further interruptions.
has only churned out a pal- two years because it looked like Cascav-
try 1,000oz gold in that time, el had finally turned the corner.” “For two years it’s been a failure, so of
with operations constantly course that’s going to be the first thing
suspended as a growing list Orinoco was due to report the first they want to see with a tick in the box,”
of problems are addressed. production numbers under new manage- Gray said.
ment at the time of print, coinciding with
Founding managing di- the installation of a fourth hammer mill. “I know it’s going to work. The grade
rector Mark Papendieck re- is there, it runs along strike, down-dip.
signed in May 2017 and was Gray said the game plan for Orinoco It’s all about development, it’s all about
replaced by Craig Dawson, who exited would be pretty simple from this point on. managing the underground equipment.
less than six months later as Orinoco’s You only need one good week to make
future was looking increasingly bleak. “We just need to keep growing the pro- 1,000oz. You can make your month in a
duction and get this thing initially up to week with these types of bonanza-grade
Enter Jeremy Gray – managing part- 1,000 ozpm and then 2,000 ozpm and projects that are quite rare to find in a
ner of Cartesian Royalty Holdings, the then hopefully get to 5,000 ozpm,” he world of low-grade, big, open-pit depos-
company which lent Orinoco the money said. its that have become the norm for our
to build Cascavel. industry.
“I’m on $100,000 to run the group and
Gray and close confidant Joe Pinto I’m incentivised purely on performance “I just know that day is going to come
took on the managing director and chair- shares, same as the whole management and I feel we’re very, very close to it now.”
man roles respectively, despite having no team. If we don’t deliver, we might as well
ASX-listed company management his- have worked at Kentucky Fried Chicken – Michael Washbourne
tory on their otherwise impressive CVs. for the last year. That’s basically the way
we’ve incentivised the whole team. If we
“Joe and I are literally accidental chair-
man and CEO and we just had to make a
run for it in December when the company
was about to lose Cascavel,” Gray told
Paydirt.

“We have gone back to basics and
cut costs while still focusing on recovery
of super high-grade ore. Every day is a
challenge, but we’re all pretty excited
about the year ahead.”

Gray has been ruthless since tak-
ing the reins of Orinoco, slashing costs
by 30% across the company, including
downsizing the Cascavel workforce by
one-third of what existed at the start of
the year.

Most of the senior management team
has now departed, with chief operat-
ing officer Richard Crew leading a new
push to turnaround the fortunes of a mine
which has stumped all before it – until
now.

Orinoco’s breakthrough moment came

PAGE 58 MAY 2018 AUSTRALIA’S PAYDIRT

Centaurus drills away

Centaurus Metals Ltd was pre- Gordon said his company still
paring to punch the first RC
drill hole into its recently acquired viewed Salobo West as the likely
Itapitanga nickel-cobalt project at
the time of print. flagship asset in the portfolio de-

A 5,000m programme is slated spite the early exploration success
for Itapitanga – in Brazil’s ac-
claimed Carajás mineral province at Itapitanga.
– following a short, labour-inten-
sive auger drilling campaign tar- “The database we’ve got is huge
geting some key prospects.
and every time we look at it the
Auger intercepts included 6.5m
@ 0.94% nickel and 0.2% cobalt, more information we glean from it
8m @ 0.59% nickel and 0.16%
cobalt, 12m @ 0.93% nickel and and the more opportunity that we
0.13% cobalt and 10.1m @ 1.03%
nickel and 0.12% cobalt. see there,” he said.

Of the 33 auger holes manually “Certainly when we go in there
drilled into Itapitanga – to a maxi-
mum depth of 12m – 29 finished in the first time it’s going to be dif-
nickel-cobalt mineralisation.
ficult to cover everything, just be-
“We had some good numbers come
out of the auger drilling, even though cause it’s such a broad area with
you can only go down so far,” Centaurus
managing director Darren Gordon told targets across the whole tenement
Paydirt.
package, so we’re going to priori-
“We know that we’ve got pretty decent
grades at surface, but now we need to tise. But, this project could be any-
see how wide the profile is and that’s
what the RC drilling will do. We’ve got a Centaurus has started RC drilling at the Itapitanga thing, it’s really quite interesting.
5,000m programme to complete there, it project after a successful auger campaign “I’d still put Salobo West as the
will probably take us a couple of months No.1 project from a point of view
to get through all of it, but we expect
some good news flow coming out of that a big plus and I think that’s what you’re of the opportunity, but at the same time
over that period of time.”
seeing in the market; companies that are to have a second project that’s a really
Centaurus acquired Itapitanga, which
sits along the southern strike extent of active in the right commodities are get- good one and something that we can
Anglo American plc’s Jacarè nickel-co-
balt deposit, from a private vendor for 3.3 ting rewarded with the success that they work straight away in Itapitanga, I think
million real in February.
have.” shareholders get the benefit of both.”
Since then the company has watched
its share price double as investors con- Itapitanga is the third Carajás-based Gordon said the rig currently turning at
tinue to crave fresh opportunities in the
battery minerals space. exploration play the company has picked Itapitanga could be moved to Pebas in a

“Obviously cobalt is a commodity that up in the past year alongside the Salobo few months, pending the planned start of
people quite like at the moment because
the thematic around cobalt and its use in West IOCG and Pebas copper-gold pro- drilling at Salobo West.
the battery space is pretty strong,” Gor-
don said. “The fact we’ve got this Anglo jects. “That really just depends upon wheth-
American deposit up the road which is
very big and is a very high grade cobalt Centaurus has completed an exten- er we want to push our team into Salobo
laterite-type deposit we also feel is part
of the reason why people are latching on sive review of the historical database West first or whether we go and do some
to us.
concerning Salobo West and will un- work at Pebas to test this fault zone that
“I also think there’s probably a little bit
of changing thematic towards nickel. It dertake drilling at the project, less than we think could be quite interesting,” he
really has come back into vogue again
after being in the doldrums for a period of 15km along strike from the prolific Salo- said.
time. So, to be able to pick up an acquisi-
tion in the right commodities and to be bo copper-gold mine, in the second half “It’s probably third ranking relative to
able to work that straight away has been
of the year post the wet season. the projects that we’ve got because they

are so good, but at the same time it’s

still justifies some work in its own right, it

comes down to a timing thing.”

Centaurus recently topped up its avail-

able cash reserves through exercising a

series of options which yielded an under-

written $2.25 million.

Gordon said the strategic cash injec-

tion would ensure his company was fund-

ed for all work across its portfolio for at

least the rest of 2018.

“We now have something in the order

of $4.7-4.8 million post the collection of

those options,” he said. “Just having the

certainty we get from the $2.25 million

coming in takes away that whole funding

risk and people can buy into the stock

with confidence knowing that it’s not a

come-raise-type situation.”

– Michael Washbourne

Salobo West is considered the flagship asset
in the Centaurus portfolio

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 59

LATIN AMERICA DOWN UNDER PREVIEW

Titan grows its Peruvian reach

Titan Minerals Ltd is doubling Titan will pay $US2 million in cash and 131 million shares to acquire the Mirador
down on its commitment to its processing plant in northern Peru
Peruvian development story, an-
nouncing consolidation of its flagship recillas while retaining the ability to pro- Carr said the acquisition would give
asset and completing an additional cess the small batches of high-grade ore Titan a foothold in northern Peru where
acquisition last month. from artisanal miners which have been there are few toll-treatment options. He
the basis of Andina’s business model. said higher grade ore is often trucked
The merger deal with Andina Re- more than 1,200km to processing cen-
sources will see ownership of the “We will have good grades at Torrecil- tres in the south of the country.
Torrecillas gold project consolidated las and we are just finishing construction
into Titan, giving the combined group at Vista, which is less than 100km away “The merger with Andina gives us
a beefed up portfolio and growth po- via the Pan American Highway,” he said. 13,000ha of concession in southern
tential which could see it produce Peru and the ability to produce 25,000
30,000 ozpa from next year. “Our strategy is about becoming more ozpa gold but we also wanted exposure
than simply a toll-treatment business. to northern Peru and the Kairos acquisi-
Titan currently has the right to We want an integrated model, both toll- tion delivers that,” he said.
acquire 70% of Torrecillas – in treating and producing from our own
southern Peru – but a successful resources. We can rely on consistently “Mirador has the potential to deliver a
bid would consolidate ownership of high grades from Torrecillas but if the further 30,000 ozpa of production; com-
the project for the first time since grade drops below the average of 16 g/t bined that is 50-60,000 ozpa gold pro-
predecessor Minera Gold went into gold, we already have access to high- duction which set the foundations for us
administration (with Andina as its grade ore so can maintain grade control to grow further.
major creditor) in 2015. The deal will into the plant.”
also add the operating Tulin and under- “Our ultimate aim is to become self-
construction Vista gold mills to the Titan Carr said Minera’s balance sheet chal- funded and to achieve that we need to
portfolio. lenges meant Torrecillas had become reach that 50-60,000 ozpa mark. These
starved of capital in recent years. two deals will allow us to make money
Ownership of Torrecillas had passed with the aim of growing the business into
to Andina under Titan/Minera’s restruc- “The right amount of money has never a 100,000 ozpa producer.
ture, with the recapitalised company be- been put into the business. It wasn’t the
ing granted a 70% earn-in opportunity in asset which was necessarily the prob- “We are really aggressive in our growth
exchange for 235 million shares. lem; there were other issues beyond aspirations and I believe we have be-
management’s control.” come a partner-of-choice in Peru. Peo-
Under the proposed merger agree- ple have mines but don’t have the capex
ment, ownership in Torrecillas will pass Exploration budgets were also cur- to develop them. We have that capex and
back to Titan with the ASX-listed junior tailed as Minera struggled to stay afloat, balance sheet and further deals can give
to issue one share for every 1.18 Andina leaving Titan the opportunity to find fur- us access to material.”
shares, resulting in Andina shareholders ther resources on the 13,000ha of con-
holding 25.56% of the restructured com- cessions it will control post-merger. Titan has paid a $100,000 deposit to
pany. Kairos with finalisation of the acquisition
Carr’s vision for Titan to become a gen- dependent on completion of due dili-
Titan executive chairman (and Andina uine plus-100,000 ozpa producer was gence and the ASX-listed junior raising
director) Matthew Carr told Paydirt the further enhanced last month when the $US3 million.
merger would tidy up Torrecillas’ own- company struck a deal to acquire Kairos
ership structure, paving the way for the Capital Peru SAC and M&S Transportes Titan will pay the vendors $US2 million
combined group to realise its long-held y Servicios Generales SRL, joint owners in cash and 131.77 million in scrip, split
ambitions of becoming a self-funded de- of the 200 tpd Mirador processing plant over three tranches.
veloper. and six mineral concessions located in
Chimbote, northern Peru. – Dominic Piper
Andina has operated a toll-treatment
business in Peru for the last eight years
and the combination of its Tulin and Vista
gold processing plants with the Torrecil-
las plant and orebody as well as the San-
tiago copper operation could solve many
of the issues which frustrated Minera’s
plans.

“We knew the Minera assets and knew
many of the problems were not associ-
ated with the operation itself,” Carr said.
“When Minera went into administration,
we saw the opportunity to maximise the
assets in the two companies. By bringing
Torrecillas together with Andina’s plants,
it becomes a very attractive opportunity.”

Carr said the combined Titan would be
uniquely positioned to treat ore from Tor-

PAGE 60 MAY 2018 AUSTRALIA’S PAYDIRT

Golden Rim to exit Chile

Golden Rim Resources once it’s been sorted be-
Ltd is set to reluctantly cause the ore sorter re-

part with its Paguanta zinc- moves a lot of the waste

silver-lead project in north- material from the ore.

ern Chile. Things like that have a big

With exploration activity impact on the economics

increasing at its Kouri gold of a project like Paguanta.

project in Burkina Faso, “Paguanta is also in

Golden Rim conceded it northern Chile, which is a

did not have the time or the fairly dry area, so things

funds required to progress like water will always be

both projects concurrently an issue. But, if you can

and is now seeking a “cor- have a smaller plant and

porate transaction” for Pa- still process the same

guanta, about 30km west amount of material, you

of the Chile-Bolivia border. will need less water. So,

“I think if Kouri and there are all sorts of con-

Burkina hadn’t taken off, siderations which are very

we’d still quite happily be useful from ore sorting.”

working on the Paguanta Having first entered

project,” Golden Rim man- Burkina Faso almost a

aging director Craig Mac- decade ago, Golden Rim

kay told Paydirt. plans to direct most of its

“Trying to fund quite a funds and focus into Kouri

big drilling programme where encouraging inter-

in Burkina and then fund cepts of 4m @ 4.7 g/t gold

Paguanta has been quite from 25m (including 1m

difficult. We actually really Golden Rim is seeking a corporate transaction for its Paguanta @ 10.9 g/t), 6m @ 3.1 g/t

like Chile, we’d love to be zinc-silver-lead project in northern Chile gold from 120m (including

pushing that project for- 1m @ 15.8 g/t) and 5m @

ward, but at the end of the day it costs a is reasonable value for shareholders on 3.8 g/t gold from 11m (including 1m @

lot of money to do both, so we’ve decided any sort of deal. It doesn’t have a huge 13.9 g/t) were recently reported.

to see if we can do some sort of a trans- holding cost, so we’re happy to just sit Mackay estimated his company has

action.” and wait if need be.” only explored 3.5km of a 16km-long min-

Golden Rim acquired an initial 70% Positive initial bulk ore sorting test eralised trend which is also more than

interest in Paguanta from AIM-listed work which yielded zinc, lead and silver 1km wide.

Herencia Resources plc in July 2016 for recoveries of more than 94%, 91% and “We’ve been at this project now for

$US2.3 million. The decision to stake a 90% respectively is only set to benefit five-odd years – we had a period there

presence in Chile came amidst the slow- any potential transaction on Paguanta. where we didn’t really do much for 18

down in exploration activity across West Up to 49% rejection of waste was also months – but it was a project that never

African-based gold projects. achieved from the testing. Results indi- had a drill hole when we arrived,” Mackay

During its 22 months in Chile, Golden cated removal of barren waste via ore said.

Rim has delineated a measured-indicat- sorting may lead to potential increases in “It’s a really big gold system and I

ed-inferred resource of 2.4mt @ 5% zinc, zinc, lead and silver grades of 60-75%. suppose in some ways we’re only just

1.4% lead, 88 g/t silver and 0.3 g/t gold Other key test work results included a scratching the surface. We’ve done all

(8% zinc equivalent) for 190,000t zinc moderate-grade ore sample of 7.4% zinc our drilling in about 3.5km of strike in

equivalent at the Patricia prospect and equivalent being upgraded to 12.8% and the north-east and we’ll look to put out a

has lifted its controlling stake in the over- a low-grade sample of 2.6% zinc equiva- maiden resource on that soon. It’s defi-

all project area to 73%. lent boosted to 4.3%. nitely one to look out for, I think it could

Golden Rim has set no definitive time- Mackay said his company was an- be quite sizeable.”

frame or type of transaction for Paguanta ticipating considerable opex and capex A recent $3.5 million oversubscribed

and continues to undertake work on the savings in the upcoming scoping study placement, led by Hartleys Ltd, all but

project, including a scoping study – led following the successful ore sorting cam- ensures the company will remain active

by Perth-based Mintrex Pty Ltd – due at paign. at Kouri for the foreseeable future.

the time of print. “Paguanta is a lower-grade deposit – Michael Washbourne
“We’re looking to conduct lower-cost so something like ore sorting which can

activities that we think will add value,” boost the grade that goes into your plant

Mackay said. is always a positive,” Mackay said.

“We actually think this is a project that “If we were to mine it at 300,000 tpa, it

can be taken forward into development, means you need a plant of maybe circa

but for us it’s about getting what we think 200,000 tpa to actually process that ore

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 61

LATIN AMERICA DOWN UNDER PREVIEW

After setbacks, Anglo counting
on Minas-Rio turnaround

Two leaks in a month, a 90-day Brazil’s permitting process has been described as “labyrinthine”
outage and $58 million in fines is
not enough to temper Anglo Ameri- Some industry veterans see financial comes to how strict its regulators get on
can plc’s ambition for its long-de- woes weighing heavily, as Anglo Ameri- mine safety, given the country is well-
layed, multi-billion dollar Minas-Rio can continues to pay fixed costs and placed to supply the US as President
iron ore mine in Brazil. stops receiving revenue for the expen- Donald Trump’s tariff war aims to boost
sive mine. his domestic steel industry.
Purchased at the height of the
commodities boom a decade ago for “This without a doubt is a setback,” for A more robust US steel industry would
$US5.5 billion, Anglo American was Anglo American, former senior executive need more iron ore and Brazil is geo-
once counting on Minas-Rio to pro- at Vale and board member at Petrobas, graphically in the right region to supply it,
duce 26.5 mtpa of iron ore by 2016. Roberto Castello Branco, said of the Mi- having received a tariff exemption.
The mine’s strength is its high-grade nas-Rio leak.
iron ore that commands a premium as “If the iron ore price stays high, it will
the world’s biggest commodity consumer He added it was also a negative for the be a very profitable asset,” UBS Asset
China seeks to cut pollution. Brazilian mining industry which may now Management’s head of European Value
face tougher scrutiny to operate a mine Steve Magill said.
Minas-Rio is Anglo American’s biggest in a country that has suffered repeated
development project, and its bet on the environmental damage from mining. “But we have to acknowledge that be-
future of iron ore, but so far it only ac- cause of past mistakes, the company
counts for a small percentage of its over- “It is a situation in which everyone los- spent a huge amount on it, so the return
all profits as it is still in ramp-up phase. es,” Branco said. on the total investment won’t be good.”

The project has been delayed by Bra- Rival miners have already pulled back That said, Anglo American has outper-
zil’s labyrinthine permitting process, and production after their own leaks. Nor- formed peers this year in part because
production is now hampered by the leaks way’s Hydro has halved capacity at its of improved efficiency in production of
on the pipeline, which will be shut dur- Alunorte alumina refinery after a leak, bulk commodities coal and iron ore and
ing a three-month inspection. Renewed while Samarco – a JV between BHP Ltd strong output from its Kumba operations
focus on environmental standards at and Vale SA – has yet to resume output in South Africa.
mines, after leaks at the Norwegian- after a dam collapse in 2015 that killed
owned Alunorte refinery and from An- 19 people. For the full-year 2017, Anglo Ameri-
glo’s pipelines, has clouded its prospects can’s most profitable divisions were coal
in some investors’ eyes. Recovering Anglo American’s initial followed by iron ore and manganese, ac-
investment was complex but not impos- counting for respectively 32% and 27%
Brazil’s federal environmental regu- sible, Fernandes said. of EBITDA.
lator Ibama levied fines against Anglo
American of 71 million reais ($US21.1 He has not put a figure on lost reve- RBC Capital Markets analyst Tyler
million) related to two spills in March from nue during the shutdown over next few Broda said the bank continued to see
a pipeline that carries iron ore from the months, telling Reuters that the focus is “relative upside in Anglo American ver-
Minas-Rio mine. That was in addition to on “stable production of 26.5mt in keep- sus peers on a 12-month view” because
125.6 million reais ($US37.3 million) from ing with the project. Then we will know it has recovered well from 2015-16 crash,
the Brazilian state of Minas Gerais on the cost of production”. cost-cutting and improved efficiency. But
April 4. acquiring permits remains a worry.
Without the permit to expand, Minas-
Ibama said it would need to evaluate a Rio would run out of ore at the end of the Hennie Faul, Anglo American’s global
technical report provided by Anglo Amer- year. copper unit chief executive, said “each
ican after its pipeline inspection before it country has its own challenges” but the
could resume operations. Ibama did not Anglo American executives have company’s balance sheet was well-posi-
provide a timeline for that evaluation. played down the pipeline leaks, saying tioned to keep developing its Brazil as-
the spills were not toxic and swiftly con- sets, which also include nickel.
Anglo American executives are con- tained.
fident Minas-Rio – a project that has “We’re certainly not trying to get out of
cost more than $US8 billion to build – “We should be ready to apply for the Brazil,” Faul told Reuters in Santiago.
will hit that 26.5 mtpa production target operating license in the third quarter of
in 2020, and expect the mine will soon this year,” Fernandes said. – Alexandra Alper and Barbara
break even, with output expected at only Lewis, Reuters
around 10mt this year. The stakes for Brazil are high when it

“Regardless of the leak, we expect a
cash flow very close to the breakeven
[this year],” Anglo American chief execu-
tive for Brazil Ruben Fernandes told Re-
uters, adding he expects the company to
get a vital final permit from Brazil.

PAGE 62 MAY 2018 AUSTRALIA’S PAYDIRT

Oro Verde thrives in the trenches

From an Australian perspec- surface trench of 20.5m @ 4.83
tive, just getting to Nicaragua g/t gold and 3.9 g/t silver.

is cumbersome, let alone trying Prior to the latest nine-hole

to access exploration ground in campaign, Oro Verde had only

the country. ever conducted one drilling pro-

Despite the challenges, par- gramme and therefore the com-

ticularly during the wet season pany was “still trying to crack the

where up to 3m rainfall can be nut of what is controlling the min-

experienced, gold miners such eralisation”, Bright said.

as B2Gold Corp – at El Limon While the presence of more

(3.5 moz gold) and La Liber- high grades and greater thick-

tad (1.8 moz) – have stayed the ness would have been wel-

course and displayed the type of comed, Bright rated the success

potential keeping the likes of Oro of the drilling campaign at about

Verde Ltd active in the Central 40-50%, as the attention moved

American country. to plotting the next programme.

The prize on offer in Nicaragua “Funds permitting, we could

was convincing enough for Doug be drilling again in another three

Bright to take on the opportunity months. Now we are compiling

of Oro Verde chief executive late as much geological information

last year. and structural information as we

While the geological poten- can. If we can get into the old

tial of Oro Verde’s Topacio workings, do some mapping and

(340,000oz gold) and early- learn more about the mineralised

stage San Isidro projects are The terrain in Nicaragua means mobilising drilling equipment trends we will be able to conduct

quite exciting for a geologist can often take longer than the actual activity better targeted drilling in the fu-

like Bright, it is another industry ture. Understanding the trends in

bringing much needed attention to the light of results from phase three drilling mineralisation and structures will mean

country. announced in April. we can adopt an economised approach

“Nicaragua is getting a lot of interest Significant results from the Topacio to drilling, which is the next step,” he said.

from a tourism point of view at the mo- vein included 10.4m @ 3.9 g/t gold and Bright said pattern drilling would be an

ment, which sends a positive signal that 30.99 g/t silver from 35.2m; Dos Amigos effective activity to undertake, however,

it is not so bad in-country. Managua is a vein 4.95m @ 7.35 g/t gold and 15.34 the challenge of accessing parts of farm-

perfectly civilised city and there is par- g/t silver from 24.3m; Mico Central vein land hosting Oro Verde’s projects with

ticular interest in environmental tourism, 17.55m @ 3.38 g/t gold and 55.63 g/t sil- heavy equipment was arduous.

the Caribbean-style beaches and things ver from 16.95m, with all mineralisation Therefore, with labour costs extremely

like volcano surfing are highly popular intersected at shallow depths. cheap in country, trenching has been a

for tourists right now,” Bright told Paydirt The company was particularly excited useful exploration method, while there

last month. by the intersection at Mico Central which has been a fair amount of geochemistry

The positive glow upon Nicaragua’s confirmed the large width and high-grade conducted despite the disturbance from

tourism sector is a good reputation- mineralisation identified in the overlying artisanal and agriculture activity in the

builder for the country, which is area.

largely survived by its agriculture “We’re not sure of the condi-

industry. tions of some of the old work-

The mining sector would do ings, but we are keen to get into

well to tailgate on the back of them and some of the old adits.

interest in tourism and attract By doing that we can save on

the likes of Newcrest Mining Ltd drilling [costs],” Bright said.

back into Nicaragua. “The key is finding consist-

Oro Verde’s success at Topa- ent, persistent mineralisation.

cio since it acquired an option to So far, we have not found any

purchase agreement in 2014 was direct correspondence between

recognised by Newcrest and the the gold and silver; it’s not axi-

parties forged ahead under a JV omatic. Some of the silver is sig-

from November 2015 until the lat- nificant and has the potential to

ter pulled out last year. lift the gold equivalent grade by

Despite the setback of New- 2-3 g/t.”

crest’s withdrawal and Oro Verde – Mark Andrews
reverting back to some basic ex-

ploration activities, Bright is con- Horseback is often the best mode of transport to access parts

fident of the path ahead now in of Oro Verde’s projects, particularly on rain-sodden tracks

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 63

WORLD CUP

FIFA World Cup 2 18:

Paydirt’s boots ‘n’ all guide

Group A man gold project and the Hawiah gold/ ness and mineral potential in other South
VHMS copper-gold-zinc project. On the American nations such as Chile, Peru,
Russia $41 pitch, the team stands little chance hav- Brazil, Mexico and Argentina. Uruguay
Industry potential: ing been a perennial qualifier but poor has often been Australia’s World Cup
coal, oil, gas, chemicals, performer. nemesis in the past and while not among
gold the top fancies this time around, the
Editor’s note: The growing tension Egypt $276 two-time winner still boasts some of the
over Syria, assassination attempts and Industry potential: world’s most potent strikers.
FBI probes is not the ideal preparation crude oil, cement, gold,
for hosting the world’s largest sporting copper Group B
event. If anything, perhaps, an event Editor’s note: It appears Egypt’s min-
such as the World Cup can instil some ing sector has a better chance of suc- Portugal $21
sort of global unity and harmony, with cess than the country has of winning the Industry potential:
the competition played in the right spir- World Cup. A leading betting agency in copper, tungsten, tin,
its. Australian companies have largely Australia has given Egypt odds of 276/1 base metals
steered clear of the country, despite its to lift the FIFA World Cup this year, so Editor’s note: Any team with Cris-
undeniably vast mineral reserves. With those with a $1 to spare should perhaps tiano Ronaldo is a fair chance, as proven
relations so bad, there is little chance of follow the lead of Resolute Mining Ltd by Portugal’s victory at Euro 2016. The
this changing anytime soon. An embar- and instead invest in the country’s mining match-up against Spain on June 15 in
rassing first-round exit awaits the host sector. About a year ago, Resolute was Sochi has the makings of a first-round
nation unless a few strings can be pulled. granted two large-scale gold exploration classic. Unlike the football team, there
blocks in the Sinai and Eastern Desert. is no clear standout in Portugal’s mining
Saudi Arabia $501 Resolute’s entry was based upon the sector but the last 18 months has seen
Industry potential: Egyptian Government’s willingness to ASX-listed juniors, including Auroch Min-
oil, fertilisers, cement, encourage participation from explor- erals NL, arrive on the Iberian Peninsula
base metals ers in a country which boasts Centamin on the hunt for lithium, tungsten and base
Editor’s note: Falling oil prices have plc’s 500,000 ozpa Sukari gold mine as metals.
cut into the country’s budget leading the its only commercial operation. With the
Government to focus on diversification. English Premier League’s top scorer, Spain $7
Mining could be an avenue worth explor- Mohammed Salah, the Pharaohs could Industry potential:
ing and a call to Kefi Minerals plc execu- get through a very weak group. uranium, potash, tin,
tive chairman Harry Anagnostaras-Ad- tungsten
ams would confirm that. “All the evidence Uruguay $34 Editor’s note: With a mining indus-
seems to be that imminently there will Industry potential: try dating back to ancient times, Spain
be a quite profound overhaul of the min- iron ore, base metals is widely regarded for its mineral wealth
ing regulations to make Saudi Arabia a Editor’s note: Few but has seen little development in the last
bit less obtuse to the mining industry,” ASX mining companies have tested the 40 years. That could change with half a
Anagnostaras-Adams said last year. Kefi waters in Uruguay and few are likely to dozen ASX-listed juniors currently ac-
has interests in the 700,000oz Jibal Qut- in the near future given the attractive- tive in the country, among them Owen

PAGE 64 MAY 2018 AUSTRALIA’S PAYDIRT

Hegarty’s Highfield Resources Ltd which story in 2018. However, Franco-Austral- Group D
is on track to develop the high margin ian mining relations continue to expand
Muga potash mine in northern Spain. thanks to the presence of juniors such as Argentina $10
Market capped at $240 million, Highfield Apollo Minerals Ltd and Variscan Mines Industry potential:
is one of the ASX’s leading potash play- Ltd, who are both actively exploring for copper, gold, lithium,
ers. Spain also promises to be a major base metals in the country. In Russia, iron ore
contender in Russia, having won its first Les Bleu hopes will be driven by a star- Editor’s note: Argentina has elevated
World Cup at South Africa 2010. With a studded line-up, including Paul Pogba, its status among the leading countries
host of stars, it is one of the favourites to Antoine Griezmann and Kylian Mbappe. in Latin America once again. President
regain the title in 2018. Mauricio Macri’s reign since 2015 couldn’t
Australia $276 have gone smoother and Argentina is the
Morocco $326 Industry potential: fifth most attractive region in the world
Industry potential: iron ore, all the base met- for policy attractiveness, according to the
phosphate (mining and als, bauxite, coal, gold, 2017 Fraser Institute Survey. Despite its
processing), tin lithium fourth placed FIFA ranking, Argentina’s
Editor’s note: The world’s dominant Editor’s note: Australia’s mining sec- path to the World Cup was less than con-
phosphate producer, Morocco has al- tor has rebounded strongly since 2014 vincing, falling behind to Ecuador in the
ways flattered to deceive when it comes and the Socceroos will need to do the early stages of its final qualifying match.
to other commodities. One ASX-listed same in Russia. Upon qualification, head Enter Lionel Messi, who hit a hat-trick to
company hoping to buck the trend is coach Ange Postecoglou resigned, leav- guide the team towards automatic quali-
Kasbah Resources Ltd which is hoping ing Bert van Marwijk (appointed in Janu- fication. The big question is: Will Messi’s
a decent rebound in tin prices since 2016 ary) little time to put his stamp on the underperforming teammates be able to
(despite a pullback occurring in the past team. Arguably, Australia’s most likely lend him a hand in June?
few months) and has clear hopes of rein- attacking threat – Tim Cahill – is also the
vigorating its development story. On the oldest. Australia can count on lion-heart- Iceland $176
pitch, the Lions of Atlas will be hoping a ed performances but their overall quality Industry potential:
set of French-born players can inspire will be tested in a tricky group. aluminium smelting,
them in their first World Cup appearance geothermal power, hy-
in 20 years. Peru $126 dropower
Industry potential: Editor’s note: Not much to talk about
Iran $426 copper, gold, lead, zinc, from a mining perspective in Iceland and
Industry potential: tin, iron ore, molybde- even if there was, little production can be
natural gas, coal, chro- num, silver, crude petroleum, petroleum expected come June-July as the nation
mium, copper, iron ore, products, natural gas of 350,000 people follow the progress
lead, manganese, zinc, sulphur Editor’s note: A leading light of Latin of their team’s first ever appearance at
Editor’s note: Iran’s economy contin- America’s mining revolution, Peru was a football World Cup. After an amazing
ues to struggle, with economic growth placed second behind Chile for invest- showing at Euro 2016 – including knock-
declining on the back of international ment attractiveness in the 2017 Fraser ing out England – Iceland promises to be
sanctions and the plateauing of oil pro- Institute Survey. Australian companies the darling of the tournament and will no
duction last year. Foreign investment re- have extensive interests in a county doubt secure the support of neutral sup-
mains unlikely in a country which boasts which ranks as South America’s largest porters.
considerable mineral potential. Always gold producer and second largest copper
a powerhouse of Asian football, Iran de- producer. Recent years have not been Croatia $34
livered the knockout blow to Australia’s so kind to the country’s football team but Industry potential:
World Cup hopes in 1998, however, has they have qualified for the first time since copper, gold, base met-
struggled to match the Socceroos record 1982. However, the distinctive red sash als, pig iron
since and it would be a surprise for Team means they will be by far the most stylish Editor’s note: Is there a better place
Melli to escape a group containing Spain team on display in Russia. to be than in Croatia during a European
and Portugal. summer? For the football diehards only
Denmark $81 the World Cup in Russia will suffice and
Group C Industry potential: the country enters the tournament not
oil and gas without hope. Croatia has proven to be a
France $6.50 Editor’s note: There solid performer on the big stage and an-
Industry potential: is little great about Denmark’s mining other good account could also throw the
copper, gold, coal, iron sector with a heavily reliance on foreign spotlight on the country’s mineral wealth.
ore, bauxite, zinc, urani- trade driving the country’s economy. On There appears to be an appetite for re-
um, antimony, arsenic, potash, feldspar, the back of economic growth of 2% in sources in Serbia and Bosnia and Her-
fluorspar 2016 and an expected 2.3% in 2017, a zegovina from majors such as Rio Tinto
Editor’s note: In the lead-up to the slight decline in the economy is antici- Ltd, so maybe a look further north could
2010 World Cup, Australia’s uranium pated this year. The country will be hop- also prove to be a winner.
sector was reportedly en vogue with ing its fortunes in Russia won’t follow
French nuclear power giant Areva was suit, having eliminated Ireland during the Nigeria $151
looking to boost its nuclear energy ca- qualifiers. Their hopes will rest on the Industry potential:
pacity on the back of Australian compa- playmaking qualities of Spurs star Chris- natural gas, petroleum,
nies’ assets. With uranium continuing to tian Eriksen. tin, iron ore, gold, nickel,
wallow in low prices, it is a vastly different limestone, niobium, lead, zinc

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 65

WORLD CUP

Editor’s note: Nigeria has been on a lion people enjoy some Zinc Ltd is also forging ahead with the
path to diversify its economy away from of the best living stand- high-grade Plomosas zinc project, which
oil and gas with the Government reinforc- ards in Central America has been of interest to Australian inves-
ing the fact at Africa Down Under last courtesy of the Govern- tors. Meanwhile, AuKing Mining Ltd has
year. “We have started with all the issues ment’s commitment to designs on being a near-term copper-
that… must be tackled by government in social spending. Good coffee, beef and gold, base metals producer in country.
order to attract investors into the mining bananas is enough to make anyone The country’s mining prospects are alto-
sector and that has forced improvement smile, but the country has little in the gether brighter than its football ones, with
in geological data, access to finance, way of mineral opportunity. The surprise West Ham United’s Javier Hernandez
mining infrastructure plus protecting and packet four years ago in Brazil, Costa Ri- the only household name in the squad.
formalising artisanal miners,” Nigeria’s ca’s ageing golden generation may find it
Minister of Mines and Steel Development, more difficult this time around. Sweden $81
Hon Dr Kayode Fayemi told Paydirt. The Industry potential:
country has a 20-year roadmap to unlock Serbia $126 hydropower, iron ore,
its mining sector, with a strong focus in Industry potential: uranium, gold, vana-
attracting foreign investors. Nigeria was copper, gold, lithium, dium
the first African nation to qualify for Rus- borate, coal Editor’s note: Australian mining inter-
sia and has perhaps the best chance of Editor’s note: Rio Tinto Ltd has est in Sweden has ebbed and flowed,
making it through the group thanks to a brought the country’s mining potential to with the likes of Aura Energy Ltd present
quartet of young English Premier League the fore through the Jadar lithium-borate in country for a number of years on the
stars. project, while the major has entered into hunt for uranium and Talga Resources
an agreement to participate in copper- Ltd defining the world’s first major gra-
Group E gold opportunities with ASX-listed Raid- phene resource. In recent times, the likes
en Resources Ltd. There appears to be of E2 Metals Ltd and Pursuit Minerals Ltd
Brazil $5.50 better potential for major discoveries have entered the country looking for gold
Industry potential: in Serbia than the country has of win- and vanadium respectively. Having sur-
gold, iron ore, baux- ning the tournament in Russia with the prised Italy in qualification, Sweden has
ite, manganese, nickel, country’s supporters desperately hoping high hopes of following Germany out of
phosphates, platinum, tin, rare earth ele- Manchester United’s Nemanja Matic can what is far from the strongest group.
ments, uranium drive them out of a tricky section.
Editor’s note: One of the world’s great Korea Republic $501
mining jurisdictions, foreign investment Group F Industry potential:
in Brazil has been hampered somewhat coal, tungsten, graphite,
in recent years by a series of political Germany $5.50 molybdenum, lead, ura-
bribery scandals. However, the country Industry potential: nium, vanadium
continues to lure ASX-listed companies coal, battery and EV Editor’s note: Considered a long shot
with Oz Minerals Ltd recently agreeing manufacturing to win the World Cup, Korea Republic’s
to a $440 million deal to acquire copper Editor’s note: It is the downstream chances of playing a critical role in the
producer Avanco Resources Ltd. The 7-1 side of the minerals game where Ger- EV and battery revolution are far great-
semi-final defeat to Germany on home many is strong, with the country’s auto- er. “South Korea is a good place to do
soil was a national disaster but with new manufacturers beginning to scramble to things because it is the world’s leading
coach Tite bringing much needed or- secure supplies for their ever-expanding lithium-ion battery manufacturer,” Pen-
ganisation and tactical awareness to his EV fleets. Reuters reports German bat- insula Mines Ltd managing director Jon
talented squad and Neymar hopefully re- tery maker Sonnen GmbH – the world’s Dugdale said at Paydirt’s Battery Miner-
turning to full fitness by the start of the largest producer of household batteries als Conference in March. “Over the past
tournament, everyone’s second team will and solar energy storage systems – will 18 months or so we have really started to
surely go deep into July this year. set up a battery manufacturing hub in generate relationships with some of the
the State this year. The plant will make key potential off-take partners [in South
Switzerland $71 around 10,000 solar batteries a year for Korea] that are going to consume some
Industry potential: the first five years. The defending world of these key commodities. We already
hydropower champions are also innovative leaders in have an off-take MoU with an expand-
Editor’s note: Who football and the nation is expecting the able graphite producer and we are in dis-
needs mineral wealth when you have the world’s best all-round squad to make it cussions with other key end-users in the
greatest exports of all – Swiss cheese two World Cup victories in a row. lithium-ion battery space.” Peninsula’s
and Roger Federer? Switzerland, of flake graphite projects in South Korea
course, is home to mining behemoths Mexico $101 include Yongwon, Daewon, Eunha and
Glencore and Pala Investments but the Industry potential: Gapyeong; all of which could host the
national football team could do with some silver, copper, gold, material suitable for South Korean end-
of their resources. A functional, work- lead, zinc users.
manlike team will be difficult to beat but Editor’s note: Azure Minerals Ltd has
has little star quality, save the odd mo- made good inroads in Mexico and drawn Group G
ment of inspiration from Xherdan Shaqiri. the attention of Rio Tinto Ltd and Teck
Resources Ltd to earn-in agreements, Belgium $11
Costa Rica $426 while also finding projects like Oposura Industry potential:
Industry potential: hydropower (zinc) of a manageable size to handle on carbonates
Editor’s note: A population of 5 mil- its own. ASX-listed peer Consolidated Editor’s note:

PAGE 66 MAY 2018 AUSTRALIA’S PAYDIRT

Unlike its mining sector, Belgium has football achievements, with its sole world Ltd and UK-based Toro Gold Ltd are
been building for some time now and title coming more than half a century hoping to follow in the footsteps MDL
should breeze through to the round of 16 ago. The country which gave birth to the created with its Sabodala gold mine in
given lesser lights Panama and Tunisia game usually arrives at the World Cup the country. The country performed bril-
are in a group which also includes Eng- with expectations far greater than their liantly at the 2002 World Cup and will
land. Belgium doesn’t have the resource- ability but with a young, inexperienced this year rely on the speed and finishing
richness like its Group G opponents, squad led by Harry Kane, even the most of Liverpool’s Sadio Mane to take them
but appears to boast a talent-laden rabid fans are not anticipating success through a winnable group.
squad, led by Vincent Kompany, Kevin this year.
de Bruyne, Edin Hazard and Thibaut Colombia $34
Courtois, who have all won English Pre- Group H Industry potential:
mier League titles in the last two years. oil, gold, coal, nickel
Poland $51 Editor’s note:
Panama $501 Industry potential: South32 Ltd heads the Australian contin-
Industry potential: iron ore, coal gent in Colombia, with the likes of gold
copper, cement Editor’s note: Iron hopefuls Metminco Ltd and Pacifico Min-
Editor’s note: Prior ore and coal are hardly flavour-of-the- erals Ltd in tow. Colombia is one of Latin
to Panama’s first-ever appearance at a month commodities and few would ex- America’s largest exporters of oil and
FIFA World Cup, the eyes of the nation’s pect Poland to be among the favourites coal, with its economy largely dependent
mining sector will be fixed on the Gov- in Russia. There have been a handful on both commodities and it is now push-
ernment’s participation at Latin America of Australian companies testing the wa- ing to attract greater metals exploration
Down Under in Perth, May 16-17. HE ters in Poland’s coal space in the past, and development. Colombia may just
Eduardo Palacios, Deputy Minister of but the appetite has been well and truly lack the firepower to compete with the
Internal Trade and Industries, will lead suppressed for that particular bulk com- heavyweights of world football in Rus-
a delegation to Perth to tell delegates modity. Poland boasts the sixth largest sia and must hope Real Madrid’s Jaime
why Panama is a worthy destination for economy in the EU and is also highly Rodriguez lives up to his potential.
mining investment. Perth-based First regarded on the pitch with a FIFA rank-
Quantum Minerals Ltd is currently build- ing of 7th. Bayern Munich’s prolific striker Japan $251
ing the Cobre Panama copper project, Robert Lewondowski will be the key to Industry potential:
the second-largest infrastructure project Poland reaching the latter stages. technology, motor vehi-
in the country’s history after the Panama cles
Canal. Come June, everyone will surely Senegal $126 Editor’s note: Japan’s technology
be downing tools to watch the team’s Industry potential: sector is a space many Australian min-
progress in Russia, however, as the rank gold, phosphate, petro- ing companies are looking towards as
outsiders, productivity is likely to be only leum, zircon they search for customers for their bat-
impacted for a few days. Editor’s note: Just like its mining sec- tery minerals projects. Japan is one of
tor, Senegal doesn’t enjoy the profile of the world’s largest manufacturers of re-
Tunisia $501 its more fancied football rivals in West Af- chargeable batteries and is a behemoth
Industry potential: rica. Nevertheless, Mineral Deposits Ltd in the tech space but it has never quite
petroleum, phosphate, (MDL) has built one of the world’s larg- performed on the world stage and is un-
iron ore est mineral sands operations at Grande likely to be at the cutting-edge of football
Editor’s note: Terrorism remains a Cote and ASX-listed Basari Resources innovation in Russia this year.
concern in the country which was at the
centre of the Arab Spring uprising. For- From the World Cup to the Africa Down Under Cup. Register your interest in this
eign investors will remain extremely wary year’s ADU Cup by visiting africadownunderconference.com
of putting money into the country and
football punters are also unlikely to back
the Eagles of Carthage to win the World
Cup with the North Africans having lost
their star player, Youssef Msakni, to in-
jury last month.

England $17
Industry potential:
coal, natural gas, oil, tin,
tungsten
Editor’s note: New Age Exploration
Ltd has started scratching the surface
at the Redmoor tin-tungsten and Lochin-
var coal projects, hoping to follow in the
footsteps of Wolf Minerals Ltd which op-
erates the Drakelands tin-tungsten mine
in Devon. Once prospective enough to
attract invaders from across Europe,
England’s mineral wealth is now largely
forgotten. The same could be said for its

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 67

REGIONAL ROUNDUP AFRICA

Tando dons vanadium cap

Tando Resources Ltd listed SPD is one of the highest grade vanadium deposits hosted on the ASX
on the ASX in late 2017
with base metals and gold op- be ramped up to advance the project as dium, which has been a bit of a sleeper. In
portunities in the Pilbara ear- quickly as possible. the next 10-20 years we will have a range
marked for exploitation. of battery types; it is not just lithium-co-
Given SPD’s location in an established balt, it will be lithium nickel-manganese
Quartz Bore, Mt Sydney vanadium province of Gauteng, there is for certain things like power drills, vana-
and Mt Vernon were to be potential to fast-track production. dium for energy storage. There will be
subjected to extensive explo- different battery types aligned to specific
ration campaigns this year, There is a live mining right application uses and they will be more efficient uses
however, Tando seized the on SPD and its proximity to existing infra- of resources. Cobalt won’t be wasted on
chance when presented with structure, including power, water, rail and a house battery, you are going to use it in
an opportunity for exposure to the facilities at the idled Mapochs vana- cars or cell phones.
a battery metal. dium mine, is further impetus for Tando
to charge ahead given the state of the “I am trying to get across this sector
“It was definitely what we vanadium market. very quickly, but you can just see how far
wanted, it was something my- and fast technologies are moving.”
self and the brokers wanted The price for 98% vanadium pentox-
in that battery metals space ide, which is considered a more com- It is this increasing demand for va-
which ties into Celsius [Re- monly traded intermediate product, is up nadium batteries which is making steel
sources Ltd] and from that it from $US3.50/lb from the start of 2017 makers nervous about supply and driv-
gives you the next resource to about $US15.40/lb at the time of print. ing companies like Tando to capitalise on
in vanadium. We have been the situation.
thinking about a vanadium Energy storage through vanadium flow
project for over a year, but it redox batteries has impacted the sector, Given it has infrastructure solutions
was a matter of finding the right one. This however, over 90% of vanadium is con- and is present in one of the big three va-
one landed on the desk and it moved sumed by steel makers. nadium producing jurisdictions alongside
very quickly after that,” Tando managing China and Russia, Tando has crucial
director Bill Oliver told Paydirt. Oliver said with stricter standards for pieces of the puzzle to work with.
steel strengthening imposed by coun-
Oliver is also chairman of Namibian- tries around the world, demand for vana- “Largo [Resources Ltd] in Brazil has
focused cobalt play Celsius and can now dium will increase in both the traditional come on in leaps and bounds in recent
further his participation in the battery and battery space. times, but historically this [South Africa]
metals game via the SPD vanadium pro- is where production happens and where
ject in South Africa’s Bushveld Complex. “The vanadium price is underpinned the expertise is. If you were to find an as-
by steel making and tightening of regu- set which can be fast-tracked to produc-
Tando signed a heads of agreement to lations around the world in rebar and tion this is where it will be,” Oliver said.
acquire 74% of SPD via staged all-scrip things which drives vanadium demand
payments and has already raised $2 mil- and prices high. The influence of vana- – Mark Andrews
lion at 40c/share to advance the project. dium on the battery market has not hap-
pened yet, like it has in cobalt. Therefore,
Under the SAMREC code, a resource I think there is a lot of room for the price
– deemed a “foreign resource” under to move and it will be very interesting to
ASX listing rules – of about 500mt was see how these things move on an ongo-
delineated from historic drilling with ing basis,” he said.
grade in concentrate averaging 2% va-
nadium and 13% titanium dioxide, mak- “There is now a dual demand for vana-
ing it one of the highest grade vanadium
projects listed on the ASX.

Mineralisation is hosted in two magnet-
ite layers, with near-surface intersections
in the ilk of 1% vanadium with mineral-
ised units averaging 23m in thickness.

“The globally significant, world class
tag is appropriate for this project,” Oliver
said.

“It is large tonnage in an infrastructure-
rich area and it has the grade profile that
we like.”

Prior to Easter, Tando was accom-
panied to SPD by brokers to asses the
project and collect samples from the out-
cropping magnetite pipes, which contain
100% magnetite.

Once Tando has completed full due dil-
igence of SPD, Oliver said activity would

PAGE 68 MAY 2018 AUSTRALIA’S PAYDIRT



REGIONAL ROUNDUP

Canada calls for Tunks & Co

For Andrew Tunks, the ing underneath them.”
reason behind his de- Iron Mask will be the

cision to join Canadian- next cab off the rank for

focused cobalt hopeful geophysical test work,

Meteoric Resources Ltd is with the remaining three to

pretty simple. follow in due course when

“Why wouldn’t you be the winter snow has thor-

attracted to a place that is oughly melted from the

called the Ontario cobalt area.

belt and the biggest town “We see this Canadian

in the area is called Co- summer that’s about to

balt?” start as our opportunity to

Tunks was appointed get in there, do some map-

managing director of Me- ping, do some geophysics,

teoric in January after a generate our targets and

stint at the helm of fellow have enough of them in

cobalt explorer Auroch front of us so that we can

Minerals Ltd, having been drill through the Canadian

enticed to make the switch winter,” Tunks said.

by newly appointed chair- Meteoric has five cobalt targets in Ontario, Canada Having raised $4.34 mil-

man Pat Burke. lion late last year, Meteoric

Only time will tell if it was the right but if you can get enough plus-2% mate- has enough funds in the kitty to keep

move, but so far respected geologist rial then it’s worthwhile,” Tunks said. itself afloat for the coming field season.

Tunks likes what he sees. “There’s a bunch of metals in this vein The company is enjoying strong support

“We’ve got some amazing grades from system, but the main two are silver and in the marketplace at the moment, with

past production on some of our ground,” cobalt and both of them really light up in mining entrepreneur and battery miner-

he told Paydirt. IP. Tony is convinced that IP is the right als fan Tolga Kumova a major share-

“The ground was picked up by a group geophysical method to highlight these holder.

“called Orix Geoscience, who we are still things, so we’re going into Mulligan to Tunks said the company would contin-

working with us in Canada. They did test that theory out. ue reviewing other project opportunities,

some really good targeting but he remained confident

and really thought about the Why wouldn’t you be attracted North America was the right
projects. They didn’t just go destination for now.

in willy-nilly and grab ground to a place that is called the “I’ve never worked in North
at random, they actually tar- Ontario cobalt belt and the biggest America before and I would
geted the geology. say my experience is so-far-

“The projects they targeted town in the area is called Cobalt? so-good,” he said.
have all got a geological rea- “The systems are pretty

son, they have all got past good and obviously there’s

production and they’ve got some incred- “It’s like being back in the Australia of very little political risk. There’s risk

ible grades.” the 1980s and going and drilling under around environment and First Nations,

Meteoric has five cobalt prospects – some old-timer’s work in Norseman and but it’s the same as anywhere else you

Mulligan, Mulligan East, Iron Mask, Burt around Kalgoorlie, that’s how I envision go and we’re comfortable dealing with

and Gillies – in its portfolio and at the what we’re doing now. We’re going back those issues.

time of print was preparing to conduct to old workings and we’re doing geo- “Ontario is a mining hub and we have

geophysics over Mulligan ahead of some physics over them and then we’ll be drill- Canada’s equivalent of the Norseman-

drilling later this year. Wiluna belt right on our door-

Mulligan – considered the step. There’s a lot of interest in

most advanced of the compa- mining and people understand

ny’s targets – has historically it because it’s such an impor-

produced 8t of cobalt grading tant part of their economy.

up to 10%. “I went over for PDAC in

Recently appointed cobalt March and I was really buoyed

manager Tony Cormack, who by the enthusiasm of the gov-

was previously chief operating ernment and the people that I

office at Meteoric’s Canadian met. I really don’t see any ma-

neighbour Battery Mineral Re- jor hurdles coming up for us.”

sources Ltd, will oversee the – Michael Washbourne
geophysics and drilling.

“We know these deposits

are not going to be big tonnes, Mulligan will be the first target subjected to geophysics, then drilling

PAGE 70 MAY 2018 AUSTRALIA’S PAYDIRT

NORTH AMERICA

Alderan focuses on main game

US-focused Alderan Resources Ltd Alderan will begin drilling the Accrington copper skarn at its Frisco
has tapped its supportive shareholder copper project in Utah early next month
base for an extra $3 million as it prepares
to embark on what chief executive Chris across about 1km by possibly up to 1km num from 43.7m (including 16m @ 1.35%
Wanless believes will be a “company-de- as well. copper, 0.12 g/t gold, 6.8 g/t silver and
fining” drilling programme. 0.03% molybdenum).
“These are 100-150m thick beds of
Alderan placed 5 million shares at 60c copper skarn, so it’s a relatively simple “The main reasons we started drilling
to sophisticated and professional inves- target and our interpretation is that these there was (A) it was easy access, (B) it
tors already on its register. Institutional copper skarns could continue all the way was a known orebody and (C) it was po-
investors also backed the internal raising down alongside the Perseverance por- tentially sitting on top of a major porphyry
which was managed by BW Equities. phyry target, or at least you could have system and geophysics actually shifted
repetitions of it on the way down as well.” the main focus for the porphyry or the
The timely cash injection ensures Al- underlying porphyry south to Accring-
deran will have enough funds in the bank Wanless said his company had taken ton,” Wanless said.
to see the company through to the start comfort from MMG Ltd’s success in min-
of diamond drilling at the priority Accring- ing the copper skarns at Las Bambas in “Having said that, there is still evidence
ton and Perseverance prospects, part of Peru, plus more than 100 years of con- that there is another porphyry, or at least
its Frisco copper project in Utah, sched- tinuous production at Bingham Canyon, an extension of the main porphyry, be-
uled for June. north of Frisco. neath the Cactus mine as well, albeit it’s
a little bit more difficult to target.”
“At the end of the day, this has always “Perseverance is a 2.5-3km diameter
been our No.1 target on the property,” chargeability anomaly. If you look at Alderan was one of the best newcom-
Wanless told Paydirt. Bingham Canyon and the mineral sys- ers of 2017 with its stock hitting $2.40/
tem associated with that, including the share last October amid the excitement
“Perseverance is a large porphyry tar- pyrite shell, it’s very similar in size, and of a potential major discovery at Frisco
get underlying this system and Accring- as we know it has produced over 3bt over in the ilk of Las Bambas, Grasberg and
ton is a large outcropping copper skarn its 100+ years of continuous production,” Ok Tedi.
which almost certainly is part of the ex- he said.
tended porphyry system as well. While the company’s share price may
“The great thing about the skarns is have tailed off since to just below 70c/
“It’s a really exciting project and it’s a that if you have a lot of copper in them, share, Wanless and his fellow directors
company-defining drill programme com- they’re generally running at much higher do not appear concerned.
ing up. This capital raise was just to get grades than the underlying porphyry sys-
through to the start of the programme to tem.” “It’s all going to depend on this [up-
get the ball moving.” coming] drilling at the end of the day and
Alderan recently halted drilling at the we recognise we need to get the drill bit
Newly appointed exploration manager nearby Cactus mine – where the com- down – get the truth-meter out – and
John Schloderer, who spent 25 years pany has been primarily focused since test these skarns and porphyry system,”
discovering projects for BHP Ltd, will listing almost a year ago – due to permit- Wanless said.
oversee the programme. ting restrictions and the intervening US
winter. “We’ve still got a market cap in excess
Alderan is expected to have at least of $70-80 million, which for an explorer
two rigs on site when drilling begins next Best intercepts from Cactus included is quite exceptional, particularly heading
month, with one targeting the outcrop- 32.5m @ 1.24% copper, 0.31 g/t gold, into this very exciting drill programme.
ping copper skarns and the other fo- 10.6 g/t silver, 0.04% molybdenum from We think we will see a lot of interest be-
cused on defining the deeper porphyry 61m (including 8m @ 3.11% copper, 0.98 ing generated in the stock over the next
potential. g/t gold, 29.2 g/t silver, 0.04% molybde- few months.”
num) and 50.5m @ 0.64% copper, 0.3 g/t
Wanless was unable to confirm how gold, 5.8 g/t silver and 0.02% molybde- – Michael Washbourne
many holes and metres would be drilled
into Accrington and Perseverance as
the company was still finalising the pro-
gramme at the time of print.

“We know as a minimum the holes
are going to be about 400-500m to get
through the copper skarns that we can
see and map out at surface, but it may be
that you have continued repetitions of it
at depth, so we might have to extend the
drilling at depth,” he said.

“We have a huge sequence of about
1,000-2,000m of carbonate alongside
the main porphyry prospect and those
carbonates have mineralisation all
throughout them in the form of the large
mineralised skarn. At surface this crops
up across a huge area, about 4.2km, and
within that you have a large copper skarn

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 71

WHEREVER WE ARE
TREND WITH US

#paydirtmedia #magazines #conferences

Paydirt editor Dominic Piper en route to Talga Resources Ltd’s
graphite project, Sweden, 2013

REGIONAL ROUNDUP EUROPE

Pursuit heads to Scandinavia

Pursuit Minerals Ltd has opportun- because they were quite close to infra- grades higher than the average. So,
istically moved into Scandinavia structure; power, roads, etc. One of our there is a chance to increase the
as it looks to place itself ahead of the Finnish projects has a railway within grade once we get our head around
curve in the purported next big bat- 10km of it. It is a particular advantage of exactly what we have got there.”
tery mineral rush. Scandinavia, particularly compared to
Australia where there are good deposits The Swedish ground is earlier
The company relisted in August but little or no infrastructure.” stage, according to Read, with li-
2017 with a portfolio based around cence applications focused in the
two Queensland zinc assets but an- The projects acquired vary in stages Ljusdal area – 300km north-west
nounced last month that it had ac- of development. In Finland, the company of Stockholm – where a 120km by
quired ground in Finland and Swe- has applied for exploration licences over 100km Ljusdal granitoid batholith
den. the Koitelainen and Karhujupukka pro- is known to have been intruded by
jects in the country’s north. mafic units mineralised with iron-
Pursuit managing director Jeremy titanium-vanadium.
Read said the change in direction Koitelainen contains historical resourc-
had been driven by the company’s es of 70mt @ 0.4% vanadium (0.7% “We have an exploration target on
belief that vanadium would be the V2O5) while Karhujupukka has been one project [10-12mt @ 0.1-0.25%
next commodity to be swept up in subject to 20 drill holes. Read said both vanadium, 3-5% titanium and 15-
the battery revolution. projects offered immediate exploration 25% iron at Kramsta] and a few drill-
opportunities. hole and rock chip sample results
“The acquisition was very much on the others,” Read said.
about commodity first,” Read told “There is a lot of historical informa-
Paydirt. “Like a number of other tion but this is not going to be a case The balanced portfolio was a de-
companies we feel vanadium will of going into a feasibility study within a liberate strategy, allowing Pursuit to
be important to future power needs few months,” he said. “There is a 70mt conduct both drilling and less costly
so we wanted to get in early with a resource but it is over a very large area groundwork.
quality project. The strategy was to and the other project only has 20 holes
get ahead of the curve and be in that into it. In the next 12 months we want to “The mineralisation is sticking out
first wave of vanadium companies.” move into a position where we can make of the ground so we can do a lot
a decision as to whether to take it to PFS with simple mapping and sampling and
Vanadium’s traditional market is the but first we will get into JORC-compliant will probably undertake some aeromag;
steel sector but the emergence of va- resource definition work.” the mineralisation is associated with
nadium redox flow battery technology magnetite units so aeromag can be a
has the potential to put strain on global Read believes grades in excess of very effective tool.”
vanadium supplies which have been cur- 0.5% V2O5 are needed to make projects Read said the opportunity to quickly
tailed by the recent closure of key mines economically viable. Koitelainen’s his- add value to the suite of projects had
in South Africa. torical resource averages 0.7% but also been a major attraction for Pursuit.
holds potential for upgrading. “We see a lot of potential in this pro-
Having identified his preferred com- ject,” he said. “There has been a rea-
modity, Read set about finding appropri- “There hasn’t been a lot of work done sonable amount of historical work that
ate projects. there and some of the sections show proves it has good grade, good material
and is shallow; that all works in our fa-
“There are a number of vanadium vour.”
deposits in China and Russia but they The company turned over 10% of its
are both off our investment agenda and register following the acquisition an-
things are hard in South Africa at the nouncement on April 12 but despite the
moment so, the next place to look was interest, the share price ended up 6%
Scandinavia.” down. Read admitted his frustration with
the market response but put some of it
While lacking in operating vanadium down to a lack of understanding of ex-
projects, Scandinavia boasts consider- actly how the projects were secured.
able vanadium deposits. “I’ve had lots of calls asking how much
we had paid for these projects but in
“There is a whole igneous belt across fact we pegged open ground so it was
Scandinavia which is prospective for a hugely cost-effective exercise,” he
vanadium and the advantage is that said. “Most of Scandinavia’s exploration
the region has political stability,” Read money comes out of the UK and that’s
said. “Finland is ranked No.1 in the lat- where we saw the opportunity. That mar-
est Fraser Institute survey and Sweden ket hasn’t gone digging into vanadium yet
is also in the top 20. So, we know we can and I imagine in 12 months we wouldn’t
get things done.” be able to put this package together;
that is the advantage of being an early
Infrastructure is often a key to the vi- mover.”
ability of vanadium projects and both Fin-
land and Sweden have road, power and – Dominic Piper
rail options in abundance.

“For any vanadium project, it is vital
you have access to infrastructure, good
grades aren’t necessarily enough,” Read
said. “All of our projects were applied for

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 73

REGIONAL ROUNDUP

More lithium from Cinovec

European Metals Holdings Ltd is Cinovec is proximal to major lithium-ion every year, and every year more
anticipating substantial cost sav- battery producers and car makers in the and more of those are being
ings after boosting lithium recov- Czech Republic and neighbouring countries made electric.
eries from its Cinovec project in “Volkswagen has just an-
the Czech Republic. testing are two key areas Coughlan and nounced the location for their
newly appointed chief operating officer first European EV factory and
Ongoing metallurgical optimi- Neil Meadows are keen to assess over it’s within 100km of our project.
sation and ore variability test the coming months. LG are also building a battery
work recently achieved lithium factory 300km from the pro-
leach recoveries of 94-95%. “There’s plenty of further work to do as ject and they’ve recently an-
part of the formal DFS, although it’s fair nounced they will be manu-
The laboratory-scale test to say it’s unlikely the new test work will facturing cathode battery cells
work confirmed a modest in- produce anything negative to those re- at that factory. Now while that
crease in temperature signifi- sults,” Coughlan said.
cantly lifted lithium recoveries, factory has been known about
while substitution of limestone “What these latest test results told us for some time, it was not known
as a cheaper alternative reagent to was that as we modestly increased the whether they would be manufac-
lime did not reduce lithium recover- temperature, we got significantly better turing cathode cells there or not.
ies. recoveries, but also we were able to get The significance of that is there is
similar recoveries with less expensive a requirement for them to source raw
Samples tested were from an area reagents. So, a combination of those two materials in the vicinity of that plant, so
of the project, about 100km north-west things suggests we’re going to be able to we’re very much in the right area.
of Prague, intended for mining and pro- maintain our position in the bottom half “The Europeans have finally woken up
cessing in the first few years of opera- of the cost curve, if not improve on it.” to the fact they can’t rely on Asia for their
tion. supply of batteries going forward. Gov-
Coughlan said it was unlikely his com- ernments and the EU are right behind
European Metals managing director pany would conduct any further explora- the development of the European battery
Keith Coughlan said the test work results tion given the current Cinovec reserve industry, and clearly that’s good news for
had his company well placed to move (34.5mt @ 0.65% lithium oxide and all manufacturers and all producers of
further down the cost curve. 0.09% tin) was already capable of sup- battery materials in Europe.”
porting a long-life operation. The only downside for European Met-
A PFS released 12 months ago flagged als in recent months has been the state
Cinovec, if developed, as potentially the Drilling to upgrade portions of the in- of political uncertainty in the Czech Re-
lowest-cost lithium carbonate mine in the ferred and indicated resource into meas- public following Prime Minister Andrej
world. ured status is scheduled to begin immi- Babiš loss of a parliamentary vote of
nently. confidence in January.
“We know we can produce battery- On March 2, European Metals was
grade lithium carbonate and we know we Proposed development schedules for notified a MoU signed with the previ-
can do it in the bottom half of the cost Cinovec track similar timelines for in- ous Czech government over a “mutual
curve, so all of this work we’re doing now creased production of electric vehicles willingness to explore downstream pro-
is simply to optimise the flowsheet and from nearby manufacturers such as cessing” options in the country was to be
get our costs down further,” Coughlan Czech Republic-based Skoda. terminated.
told Paydirt. However, Coughlan said his compa-
Lithium-ion battery makers A123 Sys- ny‘s existing exploration permits and pur-
“We already have a couple of distinct tems and HE3DA also have plants in the suit of a mining licence were not affected
advantages over your traditional spo- Czech Republic. by the standoff.
dumene roast flowsheet. There’s signifi- “The permits under which we’re op-
cant energy savings, there’s significant “Our location is fantastic,” Coughlan erating are part of Czech legislation,”
reagent savings and obviously when said. “Within 500 miles of the project, Coughlan said. “Any attempt to cancel
we add those savings to our co-product there are seven million vehicles made the MoU or an agreement that comes
credits, particularly tin, that’s how lithium from the MoU, if it were to happen, would
mica can be better than competitive have no bearing on the licences and per-
with a spodumene project, despite the mits that we have. That’s the important
fact that the headline lithium grades are thing to remember, but I think the market
lower.” has lost sight of that in marking us down
as strongly as it has.”
Optimisation work remains ongoing as European Metals was due to hold
European Metals charges towards com- meetings with key government officials
pleting a DFS on Cinovec by the end of late last month.
the year.
– Michael Washbourne
Highlights of the previously an-
nounced PFS were net operating costs
of $US3,483/t (excluding by-product
credits) and a pre-tax NPV of $US540
million from production of 20,800 tpa bat-
tery-grade lithium carbonate, based on a
21-year mine life. Capex is estimated at
$US540 million.

Pilot-scale and equipment selection

PAGE 74 MAY 2018 AUSTRALIA’S PAYDIRT

EUROPE

Aura hardens approach
in Sweden

Aura Energy Ltd is revis- mer [and storing it] for use
iting the vanadium po- in the depths of winter in

tential at the Häggån poly- places like Sweden. I think

metallic project in Sweden. there are some interesting

The project was sub- concepts and I don’t think

ject to a scoping study in it is difficult to explain the

2012, however, processing vanadium market in gen-

the battery metals compo- eral – baseload use for

nents, such as vanadium, strengthening steel and

cobalt and neodymium, then into the growing bat-

was not considered as ura- tery market.”

nium was the focus at Häg- Reeve expects the flood

gån. of activity in the vanadium

Uranium projects have space to continue for some

not garnered any attention time, as the company con-

in the market since Fukush- siders on which exchange

ima and while there is some to IPO the Häggån battery

encouraging news emanat- metal story.

ing from the sector once Fielding considerable
again, it will be a long time Aura has raised $3.7 million to fast-track its vanadium strategy in Sweden interest from the London

before a genuine hunger for market, Reeve said it would

yellowcake players returns. Electric vehicles and battery storage make sense to have a presence in Eu-

Nevertheless, Aura has done well to innovations have driven price rises for rope, while the pull of going to Toronto is

hang on to Häggån, which could poten- cobalt, lithium and the like and while va- also compelling.

tially shape as one of the world’s largest nadium redox-flow battery technology – “We all know how big the Toronto mar-

sources of vanadium production. which was invented at the University of ket can be, so it will probably be there or

Having taken the project to scoping New South Wales in the 1980s – is be- London,” Reeve said.

study stage, a lot of fundamental work coming more widely used, Reeve said “But, we are trying to be open minded

has already been undertaken at the pro- there was still high demand for vanadium and we are doing a bit of a study in terms

ject, but mineralogy and test work has in traditional industries. of evaluations to see where the better

been “parked up” due to poor prices for “When you start talking about the vana- aggregate size of the vanadium market

commodities hosted at Häggån. dium market you initially talk a lot about is – AIM, Australia, Toronto – and see

“For a long time we thought this was steel additives and its role in steel. What what has happened to that aggregate

quite a good project and we have always you are now looking at is the growing role size over the last year and see where the

considered the vanadium in it,” Aura ex- of vanadium in these applications in bat- growth is occurring.”

ecutive chairman Peter Reeve said. teries,” Reeve said. The plan is to spin Häggån out from

Reeve was speaking to Paydirt in “I think where I get the flavour from in- the Aura vehicle, which houses gold and

light of the company raising $3.7 million vestors about why the interest in vanadi- uranium projects in Mauritania, at some

via an oversubscribed placement to so- um is because they have seen what has time in the back half of 2018.

phisticated investors in Australia and the happened in the lithium battery sector “Some of the value of these [vanadium]

UK. Peak Asset Management from Mel- and they don’t see why that can’t happen companies at the moment is very good.

bourne led the capital raising which was in vanadium; vanadium has just been a The concept for us is to list Häggån sep-

twice oversubscribed. late starter in the battery area.” arately, initially sell down 20-30% and

Given there has been little vanadium Reeve said it was important the uses retain 70-80% of it,” Reeve said.

production to come from Sweden – most for vanadium and lithium-ion batteries “I am not going to speculate what the

of the world’s supply is extracted from were differentiated, in terms of one being valuation will be, but we want to do the

Russia, China and South Africa – the static and the other mobile. work because when you look at the value

willingness from investors to participate “You have these mobile, small lithium of some of these other vanadium compa-

in Aura’s capital raising indicates a ma- batteries which are fast charge and fast nies it could be reasonably high. Hope-

ture understanding of the vanadium discharge and things like vanadium bat- fully we will get the attribution of the new

market and the level of concern there is teries are largely going to be static. They vanadium company into the Aura share

about new material becoming available. are going to be much larger and they price as well, it is reasonably simple as a

In the past two years, vanadium prices are going to have serious implications,” concept and I think we can really add a

have risen by about 400% and cobalt Reeve said. lot of value.”

300%, making the value-mix of such “I have had discussions with parlia- – Mark Andrews
commodities in projects like Häggån mentarians in Sweden about the concept

economic. of generating power in the height of sum-

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 75

RDREIGLLIOBINTSAL ROUNDUP Safely Exploring Your Future bostech.com.au

Alt with key at Apollo launches
Mt Ida in Spain and
France
Ongoing RC drilling at
the Emu deposit, Bottle Apollo Minerals Ltd an-
Creek at the Mt Ida project
in Western Australia, has in- nounced a placement to in-
tercepted grades of up to 53
g/t gold. Alt Resources Ltd stitutional investors of 26.1
is buying the project from
Latitude Resources Ltd, million shares at 23c/share to
which is moving to acquire
the Mbeta lithium project in raise $6 million before costs.
Zimbabwe.
The funds will be applied
The Mt Ida deal was ex-
pected to be stitched up at to drilling and feasibility work
the time of print, with Alt
hoping for a continuation of high-grade at Couflens in France and
results in the ilk of 6m @ 19.3 g/t gold,
(including 2m @ 51.7 g/t), 7m @ 9.9 g/t advancing the adjacent Aure-
(including 1m @ 23.8 g/t), 11m @ 8.2 g/t,
(including 4m @ 12.6 g/t) and 27m @ 5.6 Cardinal will drill a host of prospective regional targets nere project in Spain where a
g/t, (including 3m @ 10.5 g/t and 1m @ in Ghana this year
15.2 g/t). reconnaissance programme
at Aurenere returned high-
AVZ coming up with
the resources Cardinal spreads wings grade gold up to 33.9 g/t and tungsten up
to 5.49% from rock samples.
Resource drilling of the Roche Dure
pegmatite at the Manono lithium project Cardinal Resources Ltd has six rigs Celsius bursts through
in the DRC is advancing rapidly with a active across its portfolio, including at its the gauge
fifth drill rig due to arrive on site at the promising regional targets.
time of print. Celsius exceeded expectations with a maiden
First-pass wide-spaced drilling at the cobalt resource from Opuwo in Namibia
AVZ Minerals Ltd reported that nearly Kungongo area indicated shallow miner-
100% core was being recovered and alisation exists beneath anomalous au-
geological logging continued to prove ger drilling. Best results included 1m @
that Manono was shaping as a project of 6.7g/t gold from 37m, 2m @ 6.5g/t from
world-class size. 7m and 5m @ 2.8g/t from 60m.

A total of 20,000m of resource drilling A total of 5,000m of RC and diamond
was being conducted, with results to date drilling will start in Q3, while three drill-
confirming the thickness of the Roche ready targets at Bongo are expected to
Dure pegmatite, while all holes contained be hit in Q2.
a high proportion of spodumene in the
pegmatite. The company also reported The Bongo area is considered to be
that the Beijing National Battery Technol- related to the north-east trending re-
ogy Co. Ltd chairman and technical advi- gional gold-rich Markoye Fault corridor
sors had visited site. hosting major gold deposits including the
5.8 moz Kiaka gold mine and 1.1 moz
Tanlouka gold project in Burkina Faso.
Meanwhile, positive assays have been
received from Ndongo where historical
drilling returned intersections of 41m @
5.2 g/t gold, 32m @ 3.1 g/t, 26m @ 2.8
g/t, 21m @ 3.8 g/t, 15m @ 4.6 g/t and
13m @ 2.5 g/t. Three of six large-scale
targets identified at Ndongo will start in
Q2, while scout drilling to test an anoma-
lous 5km strike along the Bibiani shear
zone was under way at the time of print.

Celebrating 25 years

PAGE 76 MAY 2018 AUSTRALIA’S PAYDIRT

Safely Exploring Your Future bostech.com.au

Celsius Resources Ltd has exceeded pleted by the Bonito exploration team 8m @ 1.38% copper from 77m, 17m @
0.99% copper from 97m, 5m @ 4.24%
expectations with its maiden resource and results delivered to AuKing Mining zinc from 18m, 12m @ 4.46% zinc from
34m, 12m @ 7.17% zinc from 46m and
from the Opuwo cobalt project in Namib- Ltd. 13m @ 1.98% copper from 50m.

ia, announcing an indicated-inferred re- Highlights from the assays received Marindi targets up to
60,000m
source of 112.4mt @ 0.11% cobalt, 0.41% include, 3m @ 0.73 g/t gold and 64 g/t
Marindi Metals Ltd will undertake a
copper and 0.43% zinc (0.06% cobalt silver, 5m @ 1.27 g/t gold and 74 g/t sil- programme of up to 60,000m of drilling
at the Forrestania lithium project in West-
cut-off) last month. ver, 4m @ 1.41 g/t gold and 5 g/t silver, ern Australia.

Contained cobalt of 126,100t was more 5m @ 0.58 g/t gold and 56 g/t silver, 26m Subject to regulatory approvals, a
60,000m reconnaissance drilling pro-
than the company was targeting, with the @ 0.47 g/t gold and 25 g/t silver, includ- gramme is planned, with priority targets
including the “specialised” lithium-cae-
resource open in all directions and pro- ing 3m @ 3.05 g/t gold and 103 g/t silver sium-tantalum (LCT) pegmatites at Dig-
gers Rocks and Cosmic Boy.
viding scope for further resource expan- and 3m @ 2.53 g/t gold and 116 g/t silver.
The initial 15,000-20,000m programme
sion with more drilling. A scoping study is AuKing can now decide on the future is expected to take two months, with gold
anomalism to be tested at same time.
planned for release in Q2. funding arrangements at La Dura with
In addition to lithium, gold anomalism will
Bonito, as there were no plans in place at be tested by Marindi at Forrestania

Marwood consolidating the time of print.
zinc resource
Whundo wows for
Artemis
Incoming Consolidated
Zinc Ltd managing direc-

tor Brad Marwood looks to Drilling has confirmed the

have walked in the door at potential to substantially en-

the right time, with a con- hance the resource at Artemis

tinuation of high-grade zinc Resources Ltd’s Whundo cop-

assays from infill and ex- per mine in Karratha, Western

tensional drilling of the Tres Australia.

Amigos resource in Mexico. “We have now confirmed the

The drilling programme presence of significant widths
was designed to convert in- Brad Marwood of high-grade copper, cobalt

ferred to indicated classifi- and zinc zones at our Whundo

cations and increase resource tonnages, copper mine, which is located only 15km

with results of up to 22.01% zinc-plus- from the Radio Hill plant. These holes will

lead obtained in significant widths up to be incorporated in to a new JORC-com-

4.80m within and outside of the existing pliant resource estimate prior to the Ra-

JORC resource envelope. dio Hill plant being recommissioned. We

Additional high-grade intercepts of up also have seven key POWs in the system

to 3.10m @ 20.05% zinc-plus-lead were with the DMIRS that, on approval, will al-

obtained in holes intersecting mineral- low us to move forward with key projects

ised feeder zones below resources out- the company is seeking to do in the next

lined to date. Results are to be incorpo- month [May], including the first meaning-

rated into the resource update planned ful bulk sampling programme for gold at

for April 2018. Artemis’s 47 Patch,” Artemis chairman

David Lenigas said.

AuKing gets the goods A total of 36 drill holes have been
drilled for 2,928m, with significant inter-

from La Dura cepts of 10m @ 0.39% cobalt from 87m,
including 1m @ 1.75% cobalt from 88m,

The initial phase of drilling at the La 6m @ 6.55% zinc from 42m, 13m @

Dura project in Mexico has been com- 3.18% copper and 3.95% zinc from 48m,

Industry leaders in Aircore
Deep hole Reverse Circulation
Experienced in complex remote exploration drilling

29a Clayton St, Bellevue WA 6056

www.bostech.com.au 08 9250 4252

AUSTRALIA’S PAYDIRT MAY 2018 PAGE 77

SIGNED, SEALED AND DELIVERED www.nucleussc.co.za

Nzuri feeds fresh FYI has also appointed envi-
engineering contract ronmental and permitting group
Botanica Consulting Pty Ltd to
Leading engineering firm Ly- prepare the mining proposal and
copodium Minerals Pty Ltd is set mine closure plan for the project.
to continue its burgeoning asso-
ciation with Nzuri Copper Ltd’s Ka- Landmark training
longwe copper-cobalt project in the contract for
DRC. Century locals

Lycopodium has been awarded New Century Resources Ltd has
the FEED contract for the pro-
posed Stage 1 DMS plant at Ka- awarded a landmark contract to
longwe, having been involved with
the project since early 2017. the Waanyi ReGen JV (WRJV) for

A DFS for the Stage 1 DMS plant the provision of ongoing training
was completed by Lycopodium
last October and the company is services for Aboriginal and Torres
currently undertaking the Stage 2
economic assessment for potential Lycopodium will oversee the FEED of the Stage 1 Strait Islander people local to the
leaching/SXEW processing. DMS plant at Nzuri’s Kalongwe project Century zinc mine in Queensland.
WRJV is a 50:50 JV between
The FEED contract will encompass
process engineering, procurement and has been appointed to chair the new al- Waanyi Enterprises Pty Ltd and
commercial/legal services for the Ka-
longwe DMS plant, including crusher, liance. Downer EDI Mining Pty Ltd, representing
DMS plant and conveyor design specifi-
cations, requests for quotes and tender Rio Tinto has committed up to $2 mil- the interests of both the Traditional Own-
evaluations, complete camp design, site-
wide bulk site earthworks design and lion to develop the new qualifications ers of the area where the Century mining
specifications and early works project
management and controls. which will see Australia’s first certificate leases are located and Downer’s mining

Rio Tinto lends hand to courses in automation available from services division.
automation courses
next year. Similar programmes will also In addition to providing broad commu-
Rio Tinto Ltd has collaborated with
South Metropolitan TAFE and the West- be made available through VET path- nity training and upskilling programmes,
ern Australian State Government to fast-
track nationally recognised qualifications ways in WA high schools. the training contract awarded to WRJV
in the automation space.
will incorporate a strategy to prepare po-
A range of hi-tech automation courses
– believed to be the first in providing a CSA to deliver peer tential employees for specific operational
clear pathway to emerging jobs in auto- roles at the Century mine, which is set to
mation – are expected to be available
at WA TAFE colleges and high schools review of FYI project restart in Q3 2018.
from next year. The training programme also address-

Jim Walker, former national president CSA Global Pty Ltd is undertaking es key obligations outlined in the Gulf
of the Australian Institute of Management
and chief executive of WesTrac Group, an independent peer review of FYI Re- Communities Agreement.

sources Ltd’s Cadoux Kaolin high purity

alumina project in Western Australia.

BHP extends contractThe experienced mining consultants
will provide expert technical assistance

with Alliance Aviationahead of the proposed resource up-

grade, including an independent review BHP Ltd has extended its contract

of geological quality control and quality with Alliance Aviation Services Ltd for air

assurance of the technical work carried charter services to the miner’s Pilbara-

out on the deposit to date. based iron ore sites until 2019.

CSA’s input is part of the PFS pro- Alliance has been providing services

gramme currently being undertaken at to BHP since 2002.

Cadoux Kaolin. FYI has been “extremely “This additional extension allows Al-

encouraged” by the initial mineralogical liance to continue to provide industry

test work and metallurgical studies. leading service on flights between Perth

Nucleus Mining Logistics

Providing turn-key logistics and supply chain solutions into Africa

PAGE 78 MAY 2018 AUSTRALIA’S PAYDIRT

www.nucleussc.co.za

and the BHP-owned and operated Bari- lowed by a 1,000m diamond campaign. cluding overburden removal, pit dewater-
munya and Coondewanna airports,” Alli- First drilling results from Kanuka are ing and coal hauling to port.
ance chief executive Lee Schofield said.
due this month. Drilling at Kitotolo is ex- At the PT Arutmin-owned, CLS-man-
Equity joins Force at pected to be completed in the September aged Satui coal mine, successful imple-
new DRC lithium quarter. mentation of an innovative mining plan
project has resulted in a $240 million contract
Equity has four diamond rigs operat- extension which covers overburden re-
ing at AVZ Minerals Ltd’s Manono lithium moval, coal mining and port operation
project, immediately 4km north of Ka- support services over the next three
nuka. years.

Thiess pockets $1 Thiess has also secured a $150 million
billion worth of contract extension to continue providing
coal contracts mine services at Arutmin’s Senakin coal
mine for a further two and a half years.

CIMIC Group’s global mining Arafura hatches fresh
services provider Thiess has se- DFS for Nolans
cured almost $1 billion worth of

contract work at coal operations Arafura Resources Ltd has appointed
in the Hunter Valley and South Hatch Ltd as lead engineering study
Kalimantan, Indonesia. manager for the DFS on its Nolans rare
earths project in the Northern Territory.
BHP recently awarded a $185
million contract for additional Hatch was selected on the basis of
mining services, including mining having recently completed similiar work
overburden, at the Mt Arthur coal for clients comparable to Arafura, as well
operation in the Hunter Valley. as direct access to a global network of
Thiess has been providing load procurement professionals.
and haul services at Mt Arthur
since December 2016. Arafura recently appointed Stewart
Watkins as project manager.
Also in the Hunter Valley, Glen-
DRC-based Equity Drilling will conduct drilling core awarded a $140 million The Nolans DFS is due for completion
programmes at Force’s Kanuka and Kitotolo lithium contract increase for additional by the end of the calendar year.

projects mining services at

Mt Owen. Under the

Force Commodities Ltd has contracted contract variation, Thiess

DRC-based Equity Drilling Ltd to com- will mine additional volumes

plete maiden drilling programmes at its on top of original contract

Kanuka and Kitotolo lithium projects. work including mine plan-

An initial 50 holes of about 3,000m of ning, design and execution,

drilling is planned for Kanuka to follow up drill and blast, overburden

on high-grade rock chip lithium miner- removal and coal mining

alisation results from technical due dili- services until June 2021.

gence work undertaken last September. In South Kalimantan,

A drill rig was being mobilised to site Thiess has been awarded a

from Lubumbashi at the time of print. three-year $280 million con-

When drilling is completed at Kanuka, tract extension at PT Bayan

the rig will be moved to Kitotolo for an ini- Resources Tbk’s Wahana

tial 150-hole programme covering about coal mine to continue pro- Hatch has been appointed lead engineering study man-

15,000m of aircore and RC drilling, fol- viding mining services, in- ager for the DFS on Arafura’s Nolans rare earths project

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 MAY 2018 PAGE 79

COMINGS AND GOINGS

Greg Hall Querub, a Spanish national, extensive network in the Chi- non-executive director. A geo-
has been an advisor to the nese industries which con- physicist with more than 30
Greg Hall has assumed company for the past 18 sume high purity alumina. years of experience, Smith
the role of acting chief months. will oversee Castillo’s ex-
executive at Alligator Energy Jack Testard has retired ploration programmes, par-
Ltd on a part-time basis. Hall Graeme Clatworthy has from the board of Variscan ticularly the second phase of
previously held senior roles at resigned as a director of Mines Ltd after seven years drilling at the Cangai copper
the Olympic Dam and Ranger Meteoric Resources NL after with the company. mine.
uranium mines and was man- more than five years with the
aging director of Toro Energy company in both executive Former Kingsgate Con- Eddie King has been ap-
Ltd and Hillgrove Resources and non-executive roles. solidated Ltd chief execu- pointed a director of Pure
Ltd. John Main has reverted tive Greg Foulis has been Minerals Ltd, with Robert Par-
to non-executive chairman Ean Alexander has become appointed chairman of Nu- ton stepping down from the
after two years as chief ex- the second representa- santara Resources Ltd, with board. Sean Keenan has also
ecutive. tive from Tembo Capital to Martin Pyle stepping down to resigned as a director, but will
join the board of Nzuri Cop- a non-executive director role. remain chief executive.
Christopher Achurch will per Ltd. The DRC-focused Chief financial officer Derek
replace Frederick Kotzee company has also appointed Humphry has also been ap- Matthew Bowles has re-
as chief financial officer and Tom Woolrych as exploration pointed joint company sec- signed as a non-ex-
joint company secretary at manager. retary alongside Jane Rose. ecutive director of Hardey
Kalium Lakes Ltd. Pyle has also retired as Resources Ltd following the
Steve Gemell has replaced managing director of Aurora company’s renewed focus on
David Woodall has been Michael Povey as a non- Minerals Ltd after eight years the Burraga project in New
appointed chief executive executive director of Astro in the role. Geoff Laing has South Wales.
of Superior Lake Resources Resources NL. Gemell has been appointed interim chief
Ltd. Woodall previously held more than 40 years of expe- executive and is earmarked Stephen Elliott has re-
senior corporate roles at rience in the mining industry, to become managing director signed as managing di-
Newcrest Mining Ltd, Fortes- having worked throughout after three months. rector of Caeneus Minerals
cue Metals Group Ltd, Ivan- Australasia, Africa, North and Ltd for personal reasons.
hoe Mines Group and Placer South America, Eastern and Martin Pyle Corporate lawyer Chris Zie-
Dome. Western Europe. linski has been appointed
Sik Lap (Jacky) Chan and a non-executive director to
Brett Fraser has joined Kevin Lines has been ap- Grant Thomas have been assist the company while it
Sundance Resources Ltd pointed interim chairman appointed managing direc- searches for a replacement
as a non-executive director. of Ramelius Resources Ltd tor and technical director re- managing director.
A finance and securities vet- following the passing of Bob spectively at Amani Gold Ltd
eran of more than 30 years, Kennedy. Lines has been following the resignations Chalice Gold Mines Ltd
Fraser is the current chair- a non-executive director of of Klaus Eckhof and Susmit has undertaken a board
man of Blina Minerals NL and Ramelius for more than a Shah. Antony Truelove has and management restructure,
sits on the board of Aura En- decade. also joined the board as a with Alex Dorsch appointed
ergy Ltd. non-executive director with chief executive and Tim Goy-
Bob Kennedy Craig McPherson taking over der transitioning from man-
Venturex Resources Ltd company secretary duties. aging director to executive
has appointed Salt Lake Shunjin Zhang, Richard chairman. Dorsch joined the
Mining Pty Ltd founder Ajanth O’Shannassy and Neville Iron Road Ltd has appointed company as general manager
Saverimutto as managing di- Bergin have been appointed Glen Chipman as a non- of corporate development last
rector. Anthony Reilly will con- non-executive directors of executive director. Chipman, November. Former chairman
tinue as an executive director Nkwe Platinum Ltd. a private equity investment Tony Kiernan will remain on
with a focus on corporate professional, represents the the board as lead independ-
matters. Hill End Gold Ltd has ap- company’s major sharehold- ent non-executive director.
pointed Eileen Hao to the er, Sentient Global Resourc-
Highfield Resources Ltd role of general manager and es Funds. Australian Mines Ltd has
has added Isaac Querub chief representative, China. appointed Graeme Rob-
to its board as an independ- Hao is an experienced mar- Peter Smith has joined inson as study manager as
ent non-executive director. keting consultant with an Castillo Copper Ltd as a the company looks to accel-
erate its project development
activities. Robinson is a quali-
fied engineer with more than
35 years of industry experi-
ence, including senior man-
agement roles at Vale’s $US5
billion Goro nickel laterite
project in New Caledonia and
Newcrest Mining Ltd’s Ca-
dia gold mine in New South
Wales.

PAGE 80 MAY 2018 AUSTRALIA’S PAYDIRT

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LEFTFIELD

New iron ore game

Geologists have discovered that some ones found in El Laco,” tion that we believe ex-
magmas split into two separate liq-
uids, one of which is very rich in iron, pav- Olivier Namur from the ists in the deep magma
ing the way for new iron ore deposits to
be discovered. Department of Earth and chamber beneath vol-

Most iron ore deposits are found in sed- Environmental Sciences canoes. We placed the
imentary rocks, while others are mined in
volcanic complexes, such as El Laco in at KU Leuven said. mixture in a furnace and
Chile and Kiruna in Sweden, which ac-
count for about 10% of the global pro- “We wanted to re- raised the temperature to
duction of iron. Yet, nobody knows how
these Kiruna-style deposits are formed. produce the conditions 1,000-1,040°C. We also

In Nature Communications, an inter- found in magma cham- increased the pressure
national team of researchers from insti-
tutions, including KU Leuven (Belgium), bers, where molten rock to about 1000 times the
Leibniz University Hannover and ULiège,
present the first evidence that these iron accumulates when it atmospheric pressure
ore deposits are formed when magma
splits into two separate liquids. cannot rise to the surface of Earth. These are the

“Previous studies have always focused of the Earth. This is also conditions of a magma
on the texture or the composition of natu-
ral rocks. We were the first to actually re- where the iron ore depos- chamber.
produce magmas in the lab such as the
its beneath volcanoes Samples were melted to a point “We were surprised

are formed, so reproduc- of 1,064°C and subjected to to find that, under these

ing the temperature and temperatures of 1,000-1,040°C conditions, the magma

pressure of the magma and 1,000 times the atmos- split into two separate

chambers seemed well pheric pressure of Earth. PHOTO liquids. This process is

worth examining. CREDIT: Lennart A. Fischer known as immiscibility.

“We produced a mix- Just think of what hap-

ture of iron-rich ore samples and typical pens when oil spills into the ocean: the

lavas surrounding Kiruna-type deposits. water becomes streaked with oil be-

This created a bulk magma composi- cause oil and water cannot mix.”

INDEX

Acacia 9 Celsius 68, 76-77 Inca 44-45, 46 Pacifico 48, 67
Centamin 64 Iron Road 80 Peninsula Mines 66
Adriatic 20-21 Centaurus 59 Ivanhoe 80 Pilbara 54
Chalice 80 Platina 22
Albemarle 36-37 Clean TeQ 22 Pure 80
CMP 40 Pursuit
Alderan 71 Codelco 66, 73
Consolidated Zinc 37, 39
Alicanto 50-51 Crusader 66, 77 Jupiter Mines 5

Alligator Energy 80 52

Alt 76 Kalium Lakes 80
Karos 7
Amani 80 Kasbah Raiden 20-21, 66
Kefi 65 Ramelius 80
Anglo American 14, 39, 59, 62 Kidman 64 Red River 12
Kingsgate 38 Resolute 64
Anglo Copper 39 Kinross 80 Rimfire 22
Kopore 24, 27 Rio Tinto
AngloGold 6 Dempsey 56 20-21 12, 20-21, 65, 66, 78

Antofagasta 39

Apollo Minerals 65, 76 E2 Metals 66
European Metals 74
Arafura 79 Evolution 29

Argosy 54 Sandfire 19, 48

Arutmin 79 Largo 68 SolGold 24-27, 31, 42-43
Latitude 76
Artemis 77 First Quantum 20, 67 Lithium Americas 36, 54 South32 14, 44-45, 46, 49, 67
FMC 36, 56 Lithium Power 36-37
Astro 80 Force Lundin Gold 24, 25 SQM 36-37, 38
Fortescue 79
Atlas 4, 18 FYI 4, 29, 30, 80 Strandline 9

AuKing 66, 77 78 Stratex 52

Aura 66, 75, 80 Strike 53

Auroch 64, 70 Marindi 77 Summit 22
Meteoric 70, 80
Aurora 80 Galaxy 28, 56 Metminco Sundance 80
Galena 19 Mineral Deposits 67
AusQuest 46 Glencore Mineral Resources 67 Superior Lake 80
Gold Fields 66, 79 MMG 16-17, 18
Australian Mines 22, 80 Gold Standard 22 MOD 12, 71
GoldCorp 29 21
Avanco 24, 25, 27, 55, 66 Golden Rim 29 Talga 66
Guyana Goldfields 61 Tando 68
AVZ 76, 79 51 Teck 12, 34-35, 66
Titan 60
Azure 34-35, 66 Toro Energy 80
Toro Gold 67
B2Gold 63 Neometals 16

Barrick 9, 14, 50-51 New Age 67

Bassari 67 Hancock Prospecting 24, 27, 30 New Century 12, 78
Hardey 80
Battery Mineral Resources 70 Herencia 61 Newcrest 24-26, 28, 30, 43, 63, 80 Vale 25, 62, 80
Heron 12 Valor 55
Bayan 79 Hexagon Nkwe 80 Variscan 65
Highfield 16-17 Vedanta 6
BHP 14, 20, 30, 42, 44, Hill End 64, 80 Northern Star 29 Venturex 80
Hillgrove
49, 62, 71, 78-79 Hot Chili 80 Nusantara 80
Hydro 80
Blina 80 Hylea 40-41 Nzuri 78, 80
62
Blue Sky 56 22

Breaker 4 OceanaGold 28, 29 Wolf 67
Orinoco 58
Caeneus 80 Oro Verde 63 Zimplats 7
Calidus 20-21 Orocobre
Cardinal Oz 28, 36, 54
Castillo 76 24-27, 66
80
Impala 7

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