pd245 Dec16-Jan17 web_Neat

EUROPE

Tin shines for Cinovec

European Metals Ltd has welcomed In addition to hosting Europe’s largest lithium resource, Cinovec is also home to one of the
the rebound in tin prices as it looks largest undeveloped tin resources in the world
to secure a strategic partner for its Ci-
novec lithium-tin project in the Czech likes of European Metals and others to early 1990s meant European Metals has
Republic. fill the void. had no original core to work with.

Lithium has been the commodity “If we can deliver long-term security of Nevertheless, the company has been
story of the year, but metals such as supply within the EU, that is going to be able to work with a huge amount of data,
tin and cobalt have also enjoyed some a very compelling argument for all those including 80,000m of historical drilling.
positive attention. companies mentioned [Samsung, LG]
wanting to buy their lithium product from The lithium resource at Cinovec is
At the time of print, tin was trading us,” Coughlan said. 49.1mt @ 0.43% lithium (indicated) and
above $US21,000/t – a price which sig- 482mt @ 0.43% lithium (inferred) for a
nificantly enhances project economics Czech Republic is landlocked, with combined total of 5.7mt lithium carbon-
at Cinovec. Germany to the west followed in a clock- ate equivalent, while the resource in-
wise direction by Poland, Slovakia, Hun- cludes 15.7mt @ 0.26% tin (indicated)
An updated version of the 2015 scop- gary and Austria. and 59.7mt @ 0.21% tin (inferred) for
ing study on Cinovec was released in 178,000t tin.
September, with pre-production capi- Coughlan said there were simple rules
tal costs for mining reduced by 42% to and regulations to abide by in the Czech At the time of print, drilling was con-
$US52 million and capex to build the Republic’s mining code, while Cinovec it- tinuing in the western part of the Cinovec
lithium carbonate plant down 29% to self had a 600-year history of tin mining deposit, with lithium mineralisation inter-
$US117 million. in the country and across the border into sected from less than 10m in CIW-07
Germany. and CIW-08.
The review was done as part of a
PFS which is expected to be completed According to scoping study estimates, “Pretty much every hole within the
in March, European Metals chief execu- production of 4,200 tpa tin, 800 tpa tung- deposit comes up as expected, there
tive Keith Coughlan told Paydirt. sten and 19,400 tpa lithium carbonate is hasn’t really been anything surprising,”
achievable. The study was based on a tin Coughlan said.
“We’ll then move straight into a DFS price of $US22,500/t, $US330/mtu tung-
and given that we have already done sten and $US6,500/t lithium carbonate. “If we’d had core, we’d have a meas-
that level of work I am hoping that we ured resource by now and it would have
will finish the DFS by the end of 2017,” “Our study is based on us going all the been a matter of putting our BFS to-
Coughlan said. way; building a carbonate plant and pro- gether. However, the orebody is a very
ducing a carbonate and hopefully selling homogenous, consistent orebody. The
“Given the dynamics of the lithium [carbonate] north of $US8-9,000/t like mineralisation we have encountered is
market, I believe we will have a strate- Orocobre [Ltd] has done, looking at its pretty much exactly where we expect to
gic partner alongside us at some stage last numbers,” Coughlan said. encounter and if anything we have got
during the DFS, which I think will hasten positive surprises.”
our funding options when it comes to the Before getting too carried away, Euro-
BFS.” pean Metals is focused on de-risking the Another three holes were being drilled
Cinovec project further in the PFS. at the time of print at Cinovec, which not
Industry partners for off-take and fund- only contains Europe’s largest lithium re-
ing, various financial partners and a mix While the company has made good source but also one of the largest unde-
of different funding scenarios were be- progress since acquiring Cinovec in veloped tin resources in the world.
ing considered by the company, which 2013, it would have moved even quicker
Coughlan said was not usually the case had original core been available. – Mark Andrews
for projects at this point of development.
However, a lack of records from the
“Ordinarily, at our stage of proceed- communist period from the late 1940s to
ings it would be too early to have those
conversations, but because of the na-
ture of the lithium market and the con-
cern from some of the major users about
where long-term supply is going to come
from, we are being entertained by some
of these bigger companies, even now,”
Coughlan said.

European Metals’ focus on the Czech
Republic puts it in sight of some of the
big lithium end-users, namely battery
manufacturers such as Samsung and
LG, which are well represented in the EU.

China’s move to retain as much lithium
product in country as possible will tighten
supply into Europe – the second largest
importer of lithium in the world (even
before the EV revolution in the region)
– meaning the opportunity exists for the

AUSTRALIA’S PAYDIRT DECEMBER 2016 - JANUARY 2017 PAGE 101

SIGNED, SEALED AND DELIVERED

over the short and long term as a result of
our focus on safe, reliable production, low-
er overall costs and continuous improve-
ment within our operations,” he said.

Following the award of this new drilling
contract, Swick’s global rig utilisation will
stand at about 77%, with 60 of 78 rigs en-
gaged in contracted work.

Millcreek strengthens
ties with Aguia

GR Engineering and Entech are assisting with the Mount Bundy scoping study Fertilizer developer Aguia Resources
Ltd has appointed Millcreek Mining Group
GR and Entech join Swick stands out as to oversee the BFS at its Tres Estradas
Mount Bundy team Newmarket’s slick pick phosphate project in southern Brazil.

Primary Gold Ltd has appointed GR Swick Mining Services Ltd has been Aguia awarded the contract to US-
Engineering Serviced Ltd and Entech Pty selected as the preferred candidate for a based Millcreek following an exhaustive
Ltd to assist with a scoping study on the three-year drilling contract for Newmarket tender process involving a wide range of
Mount Bundy gold project in the Northern Gold Inc. engineering consulting firms.
Territory.
The contract will involve underground di- The selection does not come as a sur-
GR Engineering will act as the lead con- amond drilling at Newmarket’s gold mines prise considering Millcreek recently com-
sultant, with Entech to provide resource at Fosterville and Stawell in Victoria, and pleted a PEA for the Tres Estradas project.
and mining inputs. Cosmo in the Northern Territory.
Millcreek will be supported by supple-
The study aims to assess the potential A formal contract will be dependent on mentary work from Brazilian engineering
for a large-scale operation over the exist- both parties agreeing to the final terms firms ECM Engenharia and Walm Engen-
ing 1.2 moz gold resource base at Mount and conditions. haria.
Bundy.
Swick expects to initially deploy eight ECM will use its experience in plant pro-
Previous DFS research, such as those rigs across these mine sites, with drilling cess and site infrastructure, while Walm
on the Rustlers Roost open pit in 2006 expected to begin in early 2017. will be responsible for geotechnical and
and Toms Gully underground in 2013, hydrological studies.
will allow Primary to expedite areas of Managing director Kent Swick said the
the study. company was pleased to be selected as Fortune finds Exterra’s
the preferred tenderer. ponds contractor
Primary expects the scoping study to be
released in early 2017. “We believe we can add significant value Exterra Resources Ltd has awarded
to Newmarket Gold’s underground drilling Mining Rehabilitation Services the con-
tract to build evaporative ponds at its Lin-
den project, east of Norseman.

The evaporative ponds will be construct-
ed north of the existing pit at its Second
Fortune gold mine.

Construction is expected to take about

Syrah selects Bureau Swick Mining Services is set to drill at Newmarket Gold’s Australian mines,
Veritas for lab analysis including the Fosterville underground mine in Victoria

Graphite hopeful Syrah Resources Ltd
has awarded a five-year contract for the
supply of on-site laboratory services to
Bureau Veritas Mozambique.

Bureau Veritas will provide specialist
equipment and analysis methodologies
to Syrah’s Balama graphite project in Mo-
zambique from early 2017.

Other services under the terms of con-
tract include provision for 24-hour analy-
sis of processing plant grade control and
product certification and accreditation of
the on-site laboratory to ISO standards.

At full production, about 1,700 assays
of various types are expected to be ana-
lysed daily.

PAGE 102 DECEMBER 2016 - JANUARY 2017 AUSTRALIA’S PAYDIRT

4-6 weeks, with open-pit dewatering and EDASU has started drilling at Plymouth’s San Jose lithium project in Spain
underground works to begin soon after.
to allow metallurgical variability samples bilities including construction, industrial
The evaporative ponds will continue the and geotechnical information within the maintenance, manufacturing, and equip-
success of the pre-production processes proposed open pit to be collected. ment hire,” he said.
at Second Fortune.
Plymouth aims to build on historic fea- “DIAB’s Geraldton location also ap-
This follows a recent capital raising of sibility studies at San Jose and bring the pealed to us. The City of Geraldton offers
$4 million, the approval of a surface works resource to JORC-compliant status. great service and logistics infrastructure
project management plan, the start of and good access to major mining opera-
camp upgrades and preparation of a min- BGC buys Geraldton’s tions.”
ing contractor laydown area. DIAB Engineering
DIAB executive director Glen Payne
“We are very pleased to be able to move Leading mining and civil construction said he was delighted the business, co-
into this pre-production phase on the back firm BGC Contracting Pty Ltd is acquiring founded by his parents, had attracted a
of the recently completed capital raising,” Geraldton-based DIAB Engineering Pty buyer of BGC’s ilk.
Exterra executive chairman John Davis Ltd.
said. “I think it is safe to say we hit it off from
Family-owned DIAB is an established the start and there were obvious synergies
Swift connects Rio industrial maintenance and fabrication in both companies’ values,” Payne said.
Tinto in FNQ services business and counts many of
Australia’s leading resources companies “For our team of more than 500 people
Swift Networks Group Ltd has won a as clients. and the Mid West community, it’s a great
lucrative contract to provide entertain- outcome for them to be part of the BGC
ment and connective infrastructure at BGC chief executive Greg Heylen said family.”
Rio Tinto Ltd’s Amrun Village facility in the acquisition was in line with the com-
North Queensland. pany’s diversification strategy. ThyssenKrupp unveils
new Pilbara facility
The Perth-based digital entertainment “The acquisition deepens our service
and communications service provider will offering, with DIAB’s specialist capa- ThyssenKrupp Industrial Solutions has
design, construct and deploy elements of launched a new facility in Port Hedland.
its award-winning entertainment system to Greg Heylen
528 rooms, offices and common areas at The 7,280sq m facility at Wedgefield
Amrun Village. consists of a machining workshop, steel
processing shed, large modern offices,
Amrun Village, about 40km south of outdoor hardstand and storage.
Weipa, accommodates 528 workers,
many of whom service Rio Tinto’s $2.6 It also supports a new insulated rail joint
billion Amrun project, south of the Emb- processing line which will enable special-
ley River. ised track components to be manufac-
tured locally.
The scope of the contract includes en-
tertainment systems, Wi-Fi and internet Since 1990, ThyssenKrupp has been
user management, video information providing services to local industries in
channels and alerting, plus CCTV and ac- Port Hedland and the wider Pilbara re-
cess control for common areas. gion and has made a cumulative invest-
ment of $6 million in the town over that
Swift has previously provided services period.
to other remote mine sites for Rio Tinto.
ThyssenKrupp offers maintenance
“This shows the trust we have built and repair services for fixed plant bulk
among our long-standing clients as Aus- materials handling and other processing
tralia’s most capable and reliable pro- plants.
vider of diversified telecommunication
and entertainment services to harsh and
remote locations,” Swift chief executive
Xavier Kris said.

Plymouth gives EDASU
thumbs up for drilling

EDASU will complete a drilling pro-
gramme for Plymouth Minerals Ltd at the
San Jose lithium project in Spain.

Drilling began in November following
approval from the Spanish Department of
Mines.

Plymouth, which has contracted the
experienced RC drilling company previ-
ously, is confident the work will be highly
productive.

Follow-up diamond drilling is planned

AUSTRALIA’S PAYDIRT DECEMBER 2016 - JANUARY 2017 PAGE 103

COMINGS AND GOINGS

Simon Grant-Rennick and appointed as non-executive investment company Rare fixture of the West Austral-
Luca Bechis have been directors, filling the positions Earth Minerals plc and is cur- ian investment community for
appointed directors of Black recently vacated by Cobb rently a non-executive direc- more than 40 years.
Mountain Resources Ltd. Johnstone and Len Eldridge. tor of Macarthur Minerals Ltd,
Grant-Rennick will focus on the major shareholder of Rare Trevor Matthews has re-
sales and marketing, while Morgan Ball Earth Minerals. He was also signed as managing direc-
Bechis is the non-executive recently added to the board of tor of MZI Resources Ltd after
nominee of the company’s Former BC Iron Ltd manag- Auroch Minerals Ltd. four and a half years in the
major shareholder Richmond ing director Morgan Ball chair. Independent non-exec-
Partners Master Ltd. has joined Saracen Mineral Long-serving Resolute Min- utive director Steve Ward will
Holdings Ltd as chief financial ing Ltd chairman Peter fill the role until a replacement
Fortescue Metals Group officer. Jeremy Ryan, who has Huston has stepped down af- is found. In another manage-
Ltd has become the first been Saracen’s legal manag- ter 16 years in the role. A re- ment change, Kevin Watters
ASX Top 200 company with er since 2012, has also been placement for Huston, who in- has been appointed head of
five female board members. appointed company secretary tends to remain on the board, operations, succeeding out-
Penny Bingham-Hall and following Gerry Kaczmarek’s is yet to be announced. going chief operating officer
Jennifer Morris were recent- resignation. Mike Ferraro.
ly appointed non-executive Rift Valley Resources Ltd
directors to replace retiring David Ryan and Bruce Mc- has appointed Stephen Trevor Matthews
pair Owen Hegarty and Geoff Farlane have resigned as Dobson as its new non-ex-
Raby. directors of Northern Man- ecutive chairman. Dobson Former Rio Tinto Ltd chief
ganese Ltd. Both played key is a financial specialist with Sam Walsh has been un-
Cliff Lawrenson will depart roles in the company’s merg- more than 25 years of expe- veiled as the new president of
as Avenira Ltd’s manag- er with Redcliffe Resources rience in global capital debt the Chartered Institute of Pro-
ing director in early 2017. Ltd. and equity markets. Dobson curement & Supply. Walsh,
A search is under way for a is tasked with unlocking the who retired in July after 25
replacement who can spend Heron Resources Ltd spin- value of the company’s exist- years with Rio Tinto, takes
more time in Senegal to drive off Ardea Resources Ltd ing projects in Tanzania and over from Richard Masser.
the company’s next phase of has announced its new board Angola.
growth. of directors, comprising Kat- Regal Resources Ltd has
rina Law as chairman, Mat- Mineral Resources Ltd appointed Anthony Be-
Mark Connelly thew Painter as managing has appointed prominent govich as chief financial of-
director and Ian Buchhorn as Perth businessman Tim Rob- ficer and company secretary.
Mark Connelly has stepped non-executive director. Sam erts as a non-executive direc- Begovich replaces Patrick
down as non-executive Middlemas has been appoint- tor. Roberts was an executive Holywell, who resigned for
chairman of Cardinal Re- ed chief financial officer and director of Multiplex Group personal reasons.
sources Ltd due to other busi- company secretary. until his family sold its remain-
ness commitments, but will ing interest in the construction GBM Gold Ltd has ap-
continue as a non-executive Axiom Mining Ltd has ap- company to Brookfield Asset pointed Jianping Wang
director. Meanwhile, Mark pointed David Kinsman Management Inc in 2007. as a non-executive direc-
Thomas has resigned from as chief financial officer and tor. Wang has more than 30
the board to allow for the ad- company secretary. Kins- David Chapman has years of experience investing
dition of an experienced de- man recently served in simi- stepped down as man- and operating companies and
velopment-focused director. lar roles at Southern Cross aging director of Sabre Re- businesses in Greater China
Goldfields Ltd and Polymet- sources Ltd, but will remain and Hong Kong.
Professor Stanley Whitting- als Mining Ltd. He will con- with the company as a non-
ham, who earned a Nobel tinue as company secretary executive director. Trish Hally has replaced
Science Prize nomination for for Mantle Mining Ltd. Andrew Metcalfe as com-
his role in the invention of lith- Tony Walsh will succeed pany secretary at Heemskirk
ium-ion battery technology, Artemis Resources Ltd has Dennis Wilkins as com- Consolidated Ltd.
has joined the board of graph- appointed David Lenigas pany secretary of Legend
ite hopeful Magnis Resources as executive chairman. Leni- Mining Ltd on December 12.
Ltd. Marc Vogts and Peter gas was most recently chair- Walsh is also company sec-
Sarantzouklis have also been man of London-listed lithium retary and a director of Atlas
Iron Ltd. He previously served
as Legend’s company secre-
tary for five years until 2011.

Min Yang and Louis Chien
have resigned as direc-
tors of Metaliko Resources
Ltd.

RNI NL has appointed Rob
Martin as a non-executive
director. Martin has been a

PAGE 104 DECEMBER 2016 - JANUARY 2017 AUSTRALIA’S PAYDIRT

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LEFTFIELD

Top honour for Twiggy

Mining magnate and philanthropist An- Andrew Forrest “I had, in a sense, the security of luck
drew Forrest is Western Australia’s and the opportunity to bring fortune to
2017 Australian of the Year. the bush, and was fortunate enough to mine and many other families. But, as my
have parents who worked tirelessly,” For- wife says, we are just custodians of that
Forrest, founder of iron ore producer rest said. wealth.
Fortescue Metals Group Ltd and the
Minderoo Foundation, was presented “If we in WA or Australia show we are
with the honour at a ceremony at Perth’s not going to stand for modern slavery
Government House in November. or indigenous disparity, we can make a
great difference.”
The 55-year-old was recognised for
supporting 250 community causes as Forrest was recognised alongside WA
well as his efforts to highlight indigenous Senior Australian of the Year Peter Ke-
disparity in Australia and draw attention nyon, WA Young Australian of the Year
to the 45 million people across the globe Abdullahi Alim and WA Local Hero June
trapped in modern slavery. Oscar.

Fortescue is one of Australia’s biggest The four are now finalists for the na-
employers of Aboriginal people. tional Australian of the Year awards,
which will be announced in Canberra on
In accepting the award, Forrest said he January 25.
was “fiercely proud” to be a West Aus-
tralian.

“I stand here before you as a really
grateful West Australian, who grew up in

INDE X

Acacia 31, 70-71, 76 Deep Yellow 60, 74-75 Manas 29 77, 103, 104
Mantle 104 104
Aguia 102 Metaliko 104 RNI
Metals of Africa 66-67
Albermarle 16 ENAMCO 49, 50, 52 Metminco
Equatorial 28, 29 Minbos 96
Altura 16, 17 European Metals 101 Mineral Resources 54 Sabre 104
Evolution 60 MMG 104 Saracen 104
Anglo American 31, 32-33, 92, 93 Exterra Molycorp 69 Sarama
Exxaro 102-103 MZI 62 SFECO 69
Anglo Platinum 32, 33 93 104 Sheffield 49
Sherritt
AngloGold 7, 29, 58, 76, 96 Sibanye 6
Sipa 96
Apollo Consolidated 80 Sirius Minerals 33
South32 68-69
Ardea 104 Southern Cross 100
Sovereign Metals 33, 93
Artemis 104 Firestone 38 SQM 104
Fortescue 5, 104 Strandline 91
Atlas Iron 66, 104 Freeport Syrah 16
77 77
Auroch 104 Nevsun 46, 48, 50, 53 102

Australian Pacific 104 Newcrest 31, 56, 59, 80

Avenira 104 Galaxy 17 Newmarket 102
GBM Gold 104
Axiom 104 Gem Diamonds Newmont 104
General Lithium 38
Glencore 16 Noble 28
Gold Fields 19
B2 Gold 29 Gold Road 7, 8-9, 31, 36 Norilsk 19
Bannerman 89 Gran Colombia 8-9
Barrick 14, 36 Graphex 96 Northern Manganese 104
Batchfire 33 94
BC Iron 14, 104 Northern Star 14, 60
BHP Billiton 5, 16, 20, 33,
45, 49, 68 Toro Gold 31, 81-82
Billabong 14
Birimian 31, 58 Orecorp 70-71 Universal Coal 92
Black Mountain 104 Orocobre 17, 101
Buxton Oz
6 20

Hancock Prospecting 100 Paladin 60, 69, 74-75 Vale 4
Harmony 56, 72, 73 Peak 62 Vital 64
Heemskirk Petra 38 Volt 90
Heron 104 Pilbara Minerals
104 Plymouth 16, 17
Polymetals 103
Cardinal 31, 64, 79, 104 IchorCoal 92 Prairie 104 Walkabout 86
Independence 6, 70 Predictive 28 West African 31, 57, 64
Chalice 49, 50 Israel Chemicals 46, 48, 55 Primary Gold West Wits
Chevron 54 80, 81-82 White Rivers 73
102 Windward 72
China Molybdenum 33, 77
6

Chinalco 4, 77 Kibaran 87
Kilo 29
Circum Minerals 55 Kore Potash 55 Randgold 7, 14, 24, 29, 31, Yara 46, 55
Yitai Coal 98
Coal of Africa 92
58, 59, 80
Codelco 16
Colas 33 Legend 104 Rare Earth Minerals 104 Zambezi 67
Lucapa 38, 40-41
Continental Coal 92 Lucara 38, 41, 42-43 Redcliffe 104

Regal 104

Dakota 15, 17 Resolute 14, 22-29, 104
Danakali 46-51, 53
De Beers 32, 33, 38 Macarthur 104 Rift Valley 104
Magnis 90, 104
Rio Tinto 4, 5, 31, 33, 68,

PAGE 106 DECEMBER 2016 - JANUARY 2017 AUSTRALIA’S PAYDIRT



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