pd241 Aug16 mag-web

EUROPE

Miners continue in Turkey

Despite Turkish President At the time of print, a total
Tayyip Erdogan declaring a of five diamond drill holes had

state of emergency on July 20, been completed, testing the

mining projects in the country 900m by 250m wide Kuzey

have been largely unaffected. zone gold in soil anomaly.

Turkey is expected to remain Drilling at Kuzey is being car-

in its current status for three ried with a man-portable drill

months to give the Government rig to see if the depth of drill-

time to deal with supporters of ing and quality of samples re-

the failed military coup in mid- quired to test anomalous gold-

July. in rock and soil anomalies. The

By announcing a state of plan is to follow up drilling at

emergency, Erdogan and his Kavaklitepe with programmes

cabinet can bypass parliament at the Discovery zone and

in passing new laws and to limit Guney zone.

or suspend rights and freedoms “I think we need to try and

as they see fit. scope out the extents of min-

Alacer Gold Corp, which is eralisation and really see what

looking to expand heap leach the continuity is like and what

oxide operations to 58mt and Trial drilling with a man-portable rig is producing shallow high- the size potential is,” Clifford

implement a sulphide project grade gold intercepts from the Kuzey zone at Kavaklitepe, Turkey said.

at the Çöpler gold mine, central There appears to be no bet-

east Turkey, reported that it was initiat- at the moment. The Teck crew are totally ter time in recent memory to be drill-

ing contingency plans to deal with any Turkish nationals, there are no expats ing for gold, with investors keen on the

potential issues stemming from the latest involved there. They are in the best posi- precious the metal, as macro instability

uprising in the country. tion to be providing a gauge on the situ- around the world boosts gold as a safe

At the time of print, Alacer confirmed ation for us.” haven investment.

all its staff had been accounted for at Clifford said Zenith would be monitor- “There are quite a lot of uncertainties

Çöpler, about 700 miles south-east from ing the situation closely through media around the world at the moment and un-

Istanbul and 340 miles east of Ankara. agencies such as Al Jazeera, while tak- certainty drives the gold price. I don’t see

Meanwhile, fellow ASX-listed entity ing regular updates from its Teck col- things stabilising in the medium-term,

with interests in Turkey – Zenith Minerals leagues on the ground. that is for sure,” Clifford said.

Ltd – also reported its activities in coun- In the meantime, high-grade drill re- If there is another commodity match-

try were not disrupted by the attempted sults from Kavaklitepe has Zenith eager ing gold’s popularity at the moment, it is

military coup by the Gulen movement. to continue drilling the project. lithium.

Zenith, through its wholly-owned sub- Shallow drill testing at Kuzey, the north Zenith is also on that bandwagon, with

sidiary – S2M2 Coal Pty Ltd – has an zone at Kavaklitepe, has intercepted the acquisition of the San Domingo pro-

agreement in place with a Turkish sub- 7.8m @ 7.3 g/t gold from 3.3m, which ject, US, late last year.

sidiary of Teck Resources Ltd whereby followed an intersection of 9m @ 5.2 g/t The company also has the Mt Alexan-

the latter can earn a 70% interest in the from the second hole of the programme. der lithium project in Western Australia,

Kavaklitepe gold project by spending however, San Domingo appears to

$US700,000, including 1,500m drill- be more advanced and a drilling

ing. programme is planned for the near-

Kavaklitepe is in western Turkey, future.

more than 200km west of Ankara “We felt that the move towards

and a similar distance south of Istan- electric vehicles, which seems to be

bul. getting a fair headway in various Eu-

“We think that there wouldn’t be ropean countries and the US, and we

much going on [where we are], that felt that it is certainly a commodity we

is the sort of indication that we are want to be in,” Clifford said.

seeing in the country areas. It seems “I’m on the side that I don’t think it is

to be in the bigger cities [where just a short-term bubble. I think it will

the trouble was], but I’m not on the actually last longer than what some

ground, so I don’t have a great feel people are thinking, so we are com-

for that,” Zenith managing director fortable trying to position ourselves
Mick Clifford told Paydirt.
for the longer term in lithium. Cer-

“We are pushing ahead at the mo- tainly prices may come back or inter-

ment and we are getting some very est might come back a little bit in the

interesting initial results from Ka- short-term, but lithium is a commod-

vaklitepe. That is somewhat being Stellar results of 9 g/t gold and 7 g/t have been ity of interest that we want to be in.”

clouded by the position of the country intercepted at Kuzey – Mark Andrews

AUSTRALIA’S PAYDIRT AUGUST 2016 PAGE 101

SIGNED, SEALED AND DELIVERED

processing site is located. second quarter of 2018.
Over the mine life of Century, about First production is slated for the third

1,000 Indigenous employees worked at quarter of 2018.
the site and MMG said this agreement Amec Foster Wheeler previously com-
ensured Traditional Owners would con-
tinue to benefit from economic opportuni- pleted basic engineering and procure-
ties associated with the mine. ment activities at the mine.

Andrew Cole GR to build Mungana The aim of the Çöpler sulphide expan-
concentrator facility sion project is to lift the processing of sul-
Pybar secures phide ore to 5,000 tpd, in addition to the
Carrapateena decline GR Engineering Services Ltd has won existing heap leach processing of oxide
the contract for design and construction ore, and extend the life of mine beyond
Pybar Mining Services will begin con- of a 500,000 tpa Mungana zinc-lead- 20 years.
struction of the Carrapateena copper- copper-gold concentrator facility at Auc-
gold project decline after being awarded tus Resources Pty Ltd’s Chillagoe project Downer extends stay at
the contract by Oz Minerals Ltd. in northern Queensland. Meandu until 2020

The project will see Pybar build a 600m Work will be coordinated out of GR’s Downer EDI Ltd has signed a $250 mil-
deep, 7,500m long decline and associat- Brisbane office and is expected to be lion contract extension to continue pro-
ed ground infrastructure and ventilation. completed in April 2017. The contract is viding mining services to Stanwell Corp’s
valued at $36 million. Meandu mine in south-east Queensland
“Carrapateena – on South Australia’s for another two years.
Gawler Craton – has compelling project “We are seeking to increase our pres-
economics and by starting the decline ence in Queensland, where we are ac- The services provider has been on site
now, we are further de-risking the project tively pursuing several contracting op- at Meandu since January 2013. The cur-
and creating more shareholder value,” portunities,” GR managing director Geoff rent contract was due to expire in June
Oz managing director Andrew Cole said. Jones said. “The award of this contract 2018, but it was recently decided Downer
is a positive step in the successful imple- would continue at the mine until at least
Oz said the contract was valued at $65 mentation of this market strategy.” June 2020.
million.
Amec Foster Wheeler Meandu delivers about 5.5 mtpa of
“When you look around the globe, snares Çöpler contract coal product to the adjacent Tarong and
Carrapateena has to be one of the most Tarong North power stations.
exciting and compelling new mining pro- Amec Foster Wheeler plc has been
jects around,” Pybar chief executive Paul awarded a reimbursable EPCM contract Downer has also signed a technical
Rouse said. “Pybar is thrilled to be part of to expand and extend the life of Anagold services agreement with Adani Enter-
this project and we are looking forward to Madencilik’s Çöpler gold mine in Turkey. prises Ltd for the provision of mine plan-
building something really special with the ning, design and project execution ser-
Oz Minerals team.” The scope of work includes detailed vices for Adani’s coal mines in India.
engineering, procurement, construc-
tion management services and support The agreement has an initial value of
during commissioning and performance $2 million over 12 months. Services in-
testing and is due for completion in the clude technical and operational support
for Adani’s existing coal mines as well as
a technical review of the bids for the In-
dian coal block auction.

Waanyi tasked with Amec Foster Wheeler is continuing its long association with the Çöpler gold mine in Turkey
Century clean-up

Waanyi ReGen has been awarded a
labour hire contract for care-and-main-
tenance activities at MMG Ltd’s Century
zinc mine in Queensland.

The three-year contract covers water
and land management and erosion pre-
vention activities at Century, which en-
tered care-and-maintenance in February
following final processing at the Lawn Hill
mine and processing operation. Work
began late last month.

Waanyi ReGen is a JV between the
Waanyi Prescribed Body Corporate and
ReGen, a Downer Mining enterprise.
The Waanyi People are the Traditional
Owners and Native Title holders of the
lands on which the Lawn Hill mine and

PAGE 102 AUGUST 2016 AUSTRALIA’S PAYDIRT

Alliance renews ties Ausdrill sold its Drilling Tools Australia (DTA) business to Robit
with South32
$19.8 million payable by no later than De- at $250-270 million.
Alliance Aviation Services Ltd has ex- cember 31. The underground contractor will pro-
tended its contracts with South32 Ltd to
fly workers to the Cannington and Gem- The transaction includes DTA’s drill bit vide a full suite of mining services in line
co operations for another three years. manufacturing and distribution business, with MMG’s near-term focus on develop-
but excludes the net assets of DTA’s oil ment.
The airline has been providing these and gas and spare parts business.
services to Cannington, Queensland, Barminco has been present at Dugald
since 2006 and Gemco, Northern Terri- DTA will continue manufacturing op- River since 2012 and the existing con-
tory, since 2009. erations at its facility in Canning Vale, tract was put out to market at the end of
Western Australia under a five-year leas- its term under standard corporate gov-
It is the eighth contract renewal Alli- ing agreement with Ausdrill, which has ernance practices.
ance has signed in the last 12 months, also entered into a 2.5-year preferred
on top of winning a contract with Santos supply arrangement for drill bits. “We look forward to further developing
Ltd for flights to the Cooper Basin and a the Dugald River mine for MMG, which
weekly charter for Toll Services to Christ- Ausdrill said proceeds from the sale adds to the underground mining servic-
mas Island. would be used to fund future capital ex- es we have been performing at MMG’s
penditure and to pay down debt. Rosebery mine for a decade,” Barminco
Vital breaks African chief executive Peter Stokes said.
supply contract record Mercator steering the
ship on Crescent Lake This is the second major contract win
Vital Engineering Pty Ltd has complet- for Barminco in as many months follow-
ed the largest grating and handrail sup- Canadian firm Mercator Geologi- ing the award of a three-year $275 million
ply contract in Africa. cal Services Ltd has been appointed to underground mining contract, with a two-
manage site due diligence for Sovereign year option, at the East Kundana JV.
The South African-based engineering Gold Company Ltd at the Crescent Lake
firm supplied safety handrails, floor grat- lithium project in Ontario. Action continues blast-
ings and expanded metals to the Medupi ing at Middlemount
and Kusile power stations. The order Mercator’s duties will include field eval-
included 100,000sq m of grating panels uation, mapping, channel sampling and Action Drill & Blast will provide drilling
per station as well as 70km of handrailing diamond drilling. and blasting services at the Middlemount
and more than 8,000 stair treads. coal mine in Queensland’s Bowen Basin
The company will also review geologi- for the next three years.
The high-grade 350WA steel used at cal reports, including the mineral claims
Medupi and Kusile had to conform to which contain four deposits that com- A wholly owned subsidiary of NRW
stringent Eskom specifications as well prise hard rock, lithium-bearing pegma- Holdings Ltd, Action has been associ-
as other contractor specifications from tites. ated with the Middlemount project since
Mitsubishi Hitachi Power Systems Africa. the mine was opened in 2011.
Mercator will act as site professionals
“We are extremely pleased that Vital and exploration managers and provide The new contract with Middlemount
was well ahead of schedule in meeting staffing as required to complete the site Coal Pty Ltd will provide the same servic-
our capacity guarantees for both power due diligence. es, except for the supply of explosives,
stations,” Vital Engineering managing di- which will now be sourced by the mine
rector Dodds Pringle said. Barminco back for five owner.
more at Dugald River
“In addition, we are proud to have re- Middlemount is an open-cut coal mine
ported a 0.0001% NCR (non-conform- Barminco Ltd has secured a five-year about 90km north-east of Emerald and
ance report) on both plants, out of a contract renewal at MMG Ltd’s Dugald 7km west of the Middlemount township.
total supply package of over 8,000t of River project, north Queensland, valued
product. This commendably low NCR
rate, I believe, is testament to Vital’s high
manufacturing standards, our total qual-
ity management philosophy and strict ad-
herence to systems management.”

Ausdrill offloads DTA
to Robit

Ausdrill Ltd has completed the sale of
its Drilling Tools Australia (DTA) business
to Robit plc.

Under the terms of the sale and pur-
chase agreement, Robit will pay Ausdrill
$66 million worth of shares in two tranch-
es.

The first tranche of $46.2 million was
paid before June 30, with the remaining

AUSTRALIA’S PAYDIRT AUGUST 2016 PAGE 103

COMINGS AND GOINGS

Iron Mountain Mining Ltd has David Robb at Iluka Resourc- on the role of project manager Andrew Tunks has com-
appointed John Ciganek es Ltd. O’Leary, managing at the company’s recently ac- mitted to a full-time role
as a non-executive director. director of Wesfarmers Ltd’s quired Sandstone gold pro- with Auroch Minerals Ltd as
Ciganek was previously gen- chemicals, energy and fertilis- ject in Western Australia. the company’s new chief ex-
eral manager of business de- ers division, will take the reins ecutive. Tunks, a geologist,
velopment and investor rela- on September 5. Elysium Resources Ltd has had been working with the
tions for PMI Gold Corp. appointed Max Carling company for more than 12
Stuart Peterson has been as managing director. Car- months. Meanwhile, Ryan
Miguel Rodriguez has appointed the full-time ling has been a director of Gaffney has joined the board
stepped down from the exploration manager at newly the company since February as a non-executive director.
board of Endeavour Mining listed Lithium Power Interna- 2013.
Corp after almost three years tional Ltd. Andrew Tunks
as a director of the company. Shawn McCormick and
Luiz Ferraz has joined Russell Middleton have UraniumSA Ltd founder
David Flanagan Avanco Resources Ltd as joined Tiger Resources Ltd as Russel Bluck has re-
an independent non-execu- non-executive directors. signed as a director of the
David Flanagan has re- tive director. company, but will remain as
signed as managing di- Aeon Metals Ltd has ap- geoscience manager.
rector of Atlas Iron Ltd. Fla- Kingston Resources Ltd pointed Ivan Wong as a
nagan will continue in the has restructured its board, non-executive director. Mark Milazzo has resigned
role until a replacement is ap- with Tony Wehby appointed as a director of Aurelia
pointed or when his six-month chairman and Andrew Corbett John Gooding has departed Metals Ltd.
notice has been served. managing director. Andrew Highlands Pacific Ltd after
Paterson has also joined the nine years in the managing di- Evolution Mining Ltd has
Founding member John company as chief geological rector’s chair. Gooding over- appointed Glen Master-
Ashley has retired from officer. Stuart Rechner has saw the development of the man vice president discovery
the board of AusQuest Ltd resigned as an executive di- Ramu nickel operation and and chief geologist, replacing
after more than 16 years with rector, but will continue in a the special mining licence ap- Roric Smith from August 1.
the company. non-executive role. plication for the Frieda River Smith will continue as a con-
project. Craig Lennon, the sultant for the company two
Ardiden Ltd has appointed Tony Kiernan has suc- company’s chief financial of- days a week.
Michelle Li as non-exec- ceeded Tony Leibowitz as ficer, will assume Gooding’s
utive technical director. Li is chairman of Pilbara Minerals role from December 1. Tim Netscher has joined
the current chair of Grange Ltd. Kiernan currently chairs Gold Road Resources Ltd
Resources Ltd. BC Iron Ltd, Chalice Gold Lindsay Dudfield has as its non-executive chair-
Mines Ltd and Venturex Re- stepped down as execu- man, with incumbent chair-
Evan Cranston has been sources Ltd and also sits on tive chairman of Jindalee man Ian Murray becoming
appointed chairman of the board of Danakali Ltd. Resources Ltd, but will con- chief executive and manag-
Clancy Exploration Ltd. Scott tinue in the role of managing ing director. Sim Lau has also
Patrizi has also joined the Avenira Ltd has appointed director. Justin Mannolini, a been appointed to the newly
company as a non-executive UK-based mining execu- current director, will assume created position of project di-
director, replacing Nathan tive Christopher Pointon to its the chairmanship in a non- rector. Tim Manners was re-
Featherby. board of directors. executive capacity. cently appointed Gold Road’s
general manager of finance.
Terrain Capital founder Stephen Gemell has been Minotaur Exploration Ltd
Michael Tilley has joined appointed a non-execu- has appointed Roger Talisman Mining Ltd has
Kogi Iron Ltd as a non-exec- tive director of Stonewall Re- Higgin as a non-executive appointed Dan Madden
utive director. Tilley is also sources Ltd. director. Meanwhile, commer- as managing director. Mad-
the chairman of Elysium Re- cial manager Varis Lidums den has been acting chief
sources Ltd. Linton Kirk has resigned has replaced the retiring Don- executive since April, having
from the board of Middle ald Stephens as company previously served as the com-
Tom O’Leary has been an- Island Resources Ltd to take secretary. pany’s chief financial officer.
nounced as the successor
to outgoing managing director Linton Kirk Ian Gordon’s position as
managing director of Flin-
ders Mines Ltd has been
made redundant as Todd
Corp looks to complete its
takeover of the company.

Intermin Resources Ltd has
appointed Peter Bilbe to its
board of directors. Bilbe, a
mining engineer, is the non-
executive chairman of Inde-
pendence Group NL.

PAGE 104 AUGUST 2016 AUSTRALIA’S PAYDIRT

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LEFTFIELD

Cowal is king of the Cup

Evolution Mining Ltd’s Cowal was mined and poured.
operation has celebrated NSW Minister for Industry,
perhaps the biggest moment
in its history – pouring the gold Resources and Energy, Anthony
used for this year’s Melbourne Roberts, was on hand at Cowal
Cup trophy. last month to toast the Cup with
Evolution employees.
For the first time in the
event’s 150-year history, the “In 2014-2015, NSW account-
Cup contains gold that was ed for 12% of Australia’s gold
mined, refined and crafted en- production, bringing more than
tirely in Australia, specifically $48 million to our state revenue
in New South Wales. and at this year’s Melbourne
Cup, gold from NSW soil will
After being mined and hold a place of honour in the
poured at Cowal, the gold was winner’s hands,” Roberts said.
refined at ABC Bullion’s refin- “Our state is the second largest
ery in Sydney. The trophy, val- gold producer in the nation.”
ued at $175,000, is made from Evolution’s Cowal mine provided the gold for this year’s Evolution, the second larg-
18-carat gold, weighs 1.65kg Melbourne Cup trophy est gold producer on the ASX,
and contains 44 pieces that employs 257 people at Cowal,
are hand-spun over a 250-hour produc- land promotional tour, the Cup recently which contributed more than $10 million
tion process. returned to Cowal, near West Wyalong to the Bland Shire economy through lo-
in central NSW, for the first time since it cal procurement in 2015.
As part of an Australian and New Zea-

INDEX

Acacia 82 Evolution 104 Magnis 64-65, 70 Sandfire 99
ACH Global 11
Adani 102 Metal Tiger 19, 21, 22 Sarama 82
Aeon 104
African Energy 36-38 FAR 83 Metals of Africa 67-68 Savary 82
Alacer 101 Finders 99
Anagold 102 First Quantum 37 MGT 48 Shumba Energy 38
Apollo Consolidated 54 Flinders 104
Ardiden 104 Middle Island 104 Silver Lake 11
Atlas Iron 104
Auctus 102 Middlemount Coal 103 Silver Mines 8
Aurelia 104
Auroch 104 Mineral Resources 96 South32 103
AusQuest 104
Avanco 104 Gem Diamonds 51 Minotaur 104 Sovereign Gold 103
Avenira 90, 104 Genmin 80
Azumah 54-55 Glencore 10, 81, 92 MMG 85, 102, 103 Sovereign Metals 74
Gold Fields 11
Gold Road 104 MNG 88 Stanwell 102
Golden Rim 88
Grange 104 MOD 18-23, 25, 31-32 Stonewall 104
Graphex 25, 70-71, 96
Gryphon 54 Mosaic 100 Strandline 62-63

Mount Burgess 34 StratMin 72-73

Mount Gibson 65 Sumitomo 98

MSB 96 Sundance 25, 80, 92

Syrah 25, 63, 64, 68

Highlands 104 Neometals 67 Talisman 104
Newcrest 89 Teck 14, 101
Bannerman 78-79 Newmont 60 Teranga
Nickel Asia 98 Tiger 54
Base 24, 56-57, 58-60, 62, 63 Iluka 57, 63, 104 Noble 47 Todd 104
IMI Zinc 14 Toro Gold 104
Bass 72-73 Independence 25, 89
Indiana 85, 104
BC Iron 104 Intermin 70, 96
Investigator 104
Berkeley 100 Iron Mountain 8 Orecorp 24
104 Orocobre 96
BHP Billiton 6, 12, 60, 78, 90 Oz 102

Birimian 75-76 Uralkali 100
UraniumSA 104
Boliden 10

Cairn Energy 83 Jindalee 104 Paladin 24, 48 Vale 6, 12
Peninsula Energy 16 Venturex 104
Cardinal 24, 42-44, 88 Perseus Vital 88
Petra Diamonds 24, 54
Castle 54 K+S 100 Pilbara Minerals 51
Khoemecau 31 Potash Corp
Chalice 104 Kibaran 52 Predictive 67, 104
Kingsgate 8 Prospect 100
Clancy 104 Kingsrose 98 Walkabout 66
Kingston 54, 89 West African 24, 88
Congo Dongfang 81 Kogi Iron 104 7 West Wits 94-95
104 Western Areas 19, 20
Cupric Canyon 20 Woodside
83
Danakali 40, 104 Regis 5
Renaissance 5
Elysium 104 Lithium Australia 67 Resolute 24, 45-47 Zenith 101
Emerald 5 Lithium Power 96, 104 Rio Tinto 12, 63, 90 Zhejiang 81
Endeavour Lucara Rox 14
Eurasian 104 Lucapa 26, 51
81 50-51

PAGE 106 AUGUST 2016 AUSTRALIA’S PAYDIRT



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