August 2022 VOLUME 1. ISSUE 307 $11.95
Abujar:
Abujar:
Abujar:
West Africa’s next gold mine
West Africa’s next gold mine
West Africa’s next gold mine
Targeting first gold
Targeting first gold
Targeting first gold in Q4CY22
Targeting first gold in Q4CY22
Targeting first gold
Targeting first gold in Q4CY22
in Q4CY2022
260,000oz gold forecast in first year of production
in Q4CY2022
260,000oz gold forecast in first year of production
in Q4CY2022
at AISC US$651/oz*
260,000oz gold forecast in first year of production
at AISC US$651/oz*
at AISC US$651/oz*
1 - 2 September 2021
* DFS 5 October 2021
* DFS 5 October 2021 Perth, Western Australia
* DFS 5 October 2021 Australia’s Paydirt August 2022
S
Sandfire:andfire:
The new global minerhe new global miner
T
l ADU preview editionADU preview edition 07
l
l On site with Lunnon MetalsOn site with Lunnon Metals 343007
l
ASX: TIE l Genesis enters M&A dancefloorGenesis enters M&A dancefloor ISSN 1445-3436 771445
ASX: TIE
l
ASX: TIE + 9
Contact: 61 8 9331 6710 [email protected] www.tietto.com
+
Contact: 61 8 9331 6710 [email protected] www.tietto.com
+
Contact: 61 8 9331 6710 [email protected] www.tietto.com
A Global Miner
poised for a new era of growth
Scale Future-facing Growth Exploration
One of the largest Producing copper, Pivoting to new Four world-class
copper-focused miners a critical metal for a long-life mines in mineral provinces
on the ASX low-carbon future Spain, Botswana
and USA
Creating Value through Opportunity sandfire.com.au
contents
PAYDIRT (ISSN 1445-3436) NEWS
Published by 10
Paydirt Media Pty Ltd. Raleigh Finlayson’s Genesis Minerals has
A.C.N. 063 985 133 made the first move in its bid to consolidate the
Leonora gold district, announcing a $111 million
Head Office: merger with the embattled Dacian Gold. While
Suite 9, 1297 Hay St, West Perth the deal offers a potential processing route for
Western Australia 6005 the company’s 2 moz Ulysses project, there
P.O. Box 1589, West Perth could be another option waiting in the wings
Western Australia 6872 after Genesis resumed talks with St Barbara
Phone: (+61 8) 9321 0355 surrounding a business combination that could
Facsimile: (+61 8) 9321 0426 create Australia’s next 300,000 ozpa gold
[email protected] producer. Michael Washbourne reports
www.paydirt.com.au
16 SITE VISIT
Editorial: When a very green, young geologist named
Editor: Dominic Piper Ed Ainscough first set foot in Kambalda 35
Journalists: Michael Washbourne, years ago, little did he known he would one day 16
Fraser Palamara sensationally return to the region to continue his
Art director: Nick Brown search for Western Australia’s next big nickel
Contributors: Brendan Ryan discovery. Since listing a bit over 12 months
(Johannesburg) ago, Ainscough’s Lunnon Metals has barely
skipped a beat at the aptly named Kambalda
Advertising:
Advertising manager: Richa Fuller nickel project. Fraser Palamara joined
Ainscough for a tour of the prized 2.2mt nickel
Subscriptions: Vidy Suastika asset to find out more about the British expat’s
Phone: (+61 8) 9321 0355 “circle of life”
Facsimile: (+61 8) 9321 0426
Pre-press and printing: 20 COVER
Vanguard Press, 26 John St,
Northbridge WA 6003 Only a few years ago, Sandfire Resources
Member of: was pondering an uncertain future as copper
reserves at its DeGrussa mine in Western
Australia rapidly depleted. The Karl Simich-led
company identified the undeveloped Motheo
project in Botswana as a potential next cab off
the rank but still needed another operating asset
to fill the looming production gap. Enter the
Paydirt Media MATSA complex in Spain and Sandfire is now a 20
Executive chairman: Bill Repard truly global miner. Simich sits down with Paydirt
Finance manager: Giovanny Jefferson editor Dominic Piper to reflect on the company’s
Accounts/administration: journey so far and why bigger is always better in
Anjali Mediratta the copper space
Conferences:
Angelique Julien, Paula Fujita,
Melita Fogarty 26 AFRICA DOWN UNDER
PREVIEW
The return of international and interstate
guests for the first time in three years are
enough cause for celebrations ahead of the
20th edition of Africa Down Under in Perth
Sandfire Resources on August 31-September 2. Several African
managing director delegations, including mines ministers and
Karl Simich
senior government officials from Gabon, Ghana,
Nigeria and Zimbabwe, are already confirmed
as attending. Our bumper 68-page preview to
Member of: the conference takes a look at the anticipated
major talking points as well as the various 26
businesses and organisations thriving on the
continent
Registered by Australia Post PP 643938/0071.
No pages or articles in this publication may be
reproduced in any form without the consent of the
publisher. This includes photographs either taken
by Paydirt Media staff or provided by other parties.
Resources not blown
off course (yet)
by market headwinds
t has been a torrid three when the market inevitably turns again.
Imonths for financial mar- It is a similar situation at Paydirt’s own Africa Down Under, of
kets, national economies which the majority of this edition is dedicated to previewing. The con-
and everyday people with ference was understandably quiet in 2020 and 2021 with the hard
inflation and market pressures placing enormous stress on all parts border preventing international delegates attending. The bounce
of the global economy. back this year is set to be strong. We have already received confir-
Resources companies have not been immune with share and mation of attendance from the mining ministers of Ghana, Nigeria,
commodity prices taking a beating in the last three months. Strange- Zimbabwe and Gabon and expect to welcome many others in the
ly though, resources executives seem largely unperturbed by the five weeks before the conference starts.
downturn with many of the companies I have spoken to recently The contrasting fortunes of mining and the wider economy are
upbeat about the medium and long term, even if the short term sug- even stronger when it comes to African resources stories. Typically,
gests things could get worse. you would expect to see investment in higher-risk jurisdictions shriv-
Just how detached sentiment in the resources sector is from the el as investor risk appetite decreases but there is a strong sense this
rest of the global economy is demonstrated by the conference sea- won’t happen in this cycle because of that dry development pipeline.
son we are entering. Africa remains the most geologically attractive continent in the
This issue reaches you on the first day of Diggers & Dealers, the world. Investors have seen the likes of Tietto Minerals Ltd in Cote
largest mining industry conference in Australia. d’Ivoire, Sandfire Resources Ltd in Botswana, Ionic Rare Earths
If share and commodity price performance were to be reflected in Ltd in Uganda and Sovereign Metals Ltd in Malawi rapidly advance
attendance at Diggers, you would expect one of the lowest turnouts projects from discovery to PFS level in less than two years, demon-
in years. However, from all reports and anecdotal evidence – the strating the large-scale opportunities which can still be found on the
scarcity of flights and accommodation, the amount of side event in- African continent.
vitations being received – it appears the forum is set for one of its With the metals supply/demand imbalance set to return in the sec-
biggest years ever. ond half of this decade, the world’s miners and consumers are once
Some of this can be accounted for by the opening of borders. Dig- again looking at Africa to offer solutions, which – if done properly
gers 2022 will be the first in three years to welcome interstate and – will create wealth and prosperity for the continent and financial
international delegates and there will be plenty of brokers, bankers success for the Australian companies already there.
and financiers eager to ensure they are present and not missing the Not that every company is outperforming and late July saw an-
next major discovery or corporate deal. other gold company enter administration with Wiluna Mining Cor-
But I think the main reason Diggers numbers are still strong is that poration Ltd seemingly accepting defeat on redevelopment of its
the industry has made sure it is well insulated against the worst of namesake gold operation in WA.
the global downturn. Unlike previous booms when companies wast- I don’t know the Wiluna Mining management well and admit I
ed cash on ill-fitting corporate deals, overly ambitious expansions haven’t followed its most recent efforts to get the mine profitable,
and lavish marketing campaigns, they have been wiser this time but the latest chapter in the Wiluna story doesn’t come as a surprise.
around. Despite the share price corrections and shrinking margins, In 17 years covering the industry I’ve witnessed numerous com-
few of the mid-tier miners in Australia are in any real financial trouble panies and management teams attempt to make money out of the
and appear equipped to ride out the storm. notoriously tricky Wiluna orebody and they have all failed, no matter
At the junior end, explorers took advantage of the market condi- the gold price, the market sentiment or the strategies involved.
tions in FY2021 to raise big licks of cash. In previous booms, ex- Any number of mine plans and tactics have been employed but
plorers were more content to a raise small amounts in the hope of the outcome has remained the same, the metallurgical properties of
achieving the company-making discovery without diluting share- the refractory ore making it almost impossible to guarantee recover-
holders. ies and therefore enough ounces to make the operation work.
The problem is, there are few projects which are found, drilled We often hear companies describe their operations as “cycle-
out and then developed within one commodity cycle. Companies proof”, meaning the quality of the asset is such that it will make
who don’t raise enough may find themselves with a good discovery money in any part of the commodity cycle. Wiluna has shown itself
but no means of advancing because the market is shut for capital “cycle-proof” as well. Unfortunately, in this case, it has proven to be
raisings. unable to make money in any part of the cycle.
This time around, many explorers have recognised the need to
have enough cash to see them through the downturn. That means
the exploration stories which would usually stall during a market
trough are still moving forward, ready to move into development [email protected] @DominicPiper
Page 4 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Trusted independent financial
advisor to the mining sector
2020: Advisor to
2021: Advisor to
2021: Advisor to
Diversified Minerals
Cassini Resources
Diversified Minerals
Geopacific Resources
Advised on the US$100m
Joint defence advisor in
Advised on the A$20m sale
of the Henty gold mine in
of the Dargues gold mine in
financing (Loan and Stream)
relation to the A$76m
takeover by OZ Minerals.
for the greenfield Woodlark
Tasmania to Catalyst Metals.
NSW to Aurelia.
gold project.
2018: Advisor to
2017: Advisor to
2016: Advisor to
2018: Advisor to
Explaurum Limited
PanAust
Stanmore Coal
OZ Minerals
Defence advisor in relation to
Advised on the US$90m
Advised on the financing
the unsolicited A$89m
acquisition of the Wotonga
strategy for the greenfield
refinancing of the Ban
takeover by Ramelius
development of the
Houayxai and Phu Kam
South Project from
Resources.
Carrapateena copper-gold
copper-gold mines in Laos.
Peabody Energy.
mine in SA.
neWs Advised on the A$30m 2020: Joint Advisor to Advised on the A$200m sale
New metals pact could redraw
world supply T +61 2 9133 9000 | www.icapartners.com.au
metallic NATO is starting to take country that can. of great competition”.
A shape, though no-one is calling it that “Friend-shoring is the idea that coun- The first tangible rewards of all this
just yet. tries that espouse a common set of heightened mineral diplomacy are start-
The Minerals Security Partnership values...get the benefits of trade so we ing to be seen.
(MSP) is in theory open to all countries have multiple sources of supply and are Rare earths have posed a particular
that are committed to “responsible criti- not reliant excessively on sourcing criti- headache for Western countries because
cal mineral supply chains to support eco- cal goods from countries where we have of China’s dominance of the supply chain,
nomic prosperity and climate objectives”. geopolitical concerns,” US Treasury Sec- particularly the processing stage of pro-
But the coalition assembled by the US retary Janet Yellen said in “a fireside chat” duction.
is one of like-minded countries such as with Canada’s Deputy Prime Minister and The only operating rare earths mine in
Australia, Canada, the UK, France and Minister of Finance Chrystia Freeland. the US, for example, has been shipping
Germany with an Asian axis in the form of The process was already well under its concentrate to China for refining.
Japan and South Korea. way before the US State Department The DoD is investing $US120 million in
It is defined as much as anything by announced the formation of the MSP on a new plant for heavy rare earths separa-
who is not on the invite list – China and June 14. tion. It has chosen an Australian company
Russia. US and Canadian officials have been as its partner.
China’s dominance of key enabling working closely as Canada fleshes out a Lynas Rare Earths Ltd will supply the
minerals such as lithium and rare earths promised $C3.8 billion package to boost plant in Texas with mixed rare earths car-
is the single biggest reason why Western production of lithium, copper and other bonate from its mine in Western Australia
countries are looking to build their own strategic minerals. as well as working with third-party suppli-
supply chains. European Commission Vice-President ers “as they become available” it said.
Russia, a major producer of nickel, alu- Maroš Šefčovič has just been in Norway The plant is due to become operational
minium and PGMs, is now also a highly to seal “a strategic partnership” on battery in 2025 and Lynas and the DoD are al-
problematic trading partner as its war in technologies and critical raw materials. ready working on a complementary light
Ukraine grinds on. The Pentagon is getting in on the rare earths separation facility.
A previously highly globalised miner- friend-shoring trend too. Expect many more “friendly” tie-ups in
als supply network looks set to split into It has asked Congress to amend the the coming months as the US and Europe
politically polarised spheres of influence, Cold War-era Defense Production Act attempt to pivot away from “unfriendly”
a tectonic realignment with far-reaching (DPA) to allow it to invest directly in Aus- nations.
implications. tralia and the UK. As for China and Russia, “we’re still go-
The US and Europe have realised that The Defense Department (DoD) says it ing to have a relationship with countries
they can’t build out purely domestic sup- is “unnecessarily” constrained by the ex- outside this closest circle but it’s going to
ply chains quickly enough to meet de- isting requirement to invest only on home be a...relationship that has less trust at its
mand from the electric vehicle transition. soil or in Canada. Leveraging the resourc- heart,” according to Freeland.
The answer is “friend-shoring”. If you es of two “closest allies” would “increase The days of unlimited Chinese mining
can’t produce it yourself, find a friendly the nation’s advantage in an environment investment in countries such as Canada
Trusted independent financial Trusted independent financial
advisor to the mining sectoradvisor to the mining sector
Page 6 aUgUST 2022 aUSTRaLIa’S PaYDIRT
2021: Advisor to 2021: Advisor to 2021: Advisor to 2021: Advisor to 2020: Joint Advisor to 2020: Joint Advisor to 2020: Advisor to 2020: Advisor to 2019: Advisor to 2019: Advisor to
Geopacific ResourcesGeopacific Resources Diversified MineralsDiversified Minerals Cassini ResourcesCassini Resources Diversified MineralsDiversified Minerals Diversified MineralsDiversified Minerals
Advised on the US$100m Advised on the US$100m Advised on the A$20m sale Advised on the A$20m sale Joint defence advisor in Joint defence advisor in Advised on the A$200m sale Advised on the A$200m sale Advised on the A$100m Advised on the A$100m
financing (Loan and Stream) financing (Loan and Stream) of the Henty gold mine in of the Henty gold mine in relation to the A$76m relation to the A$76m of the Dargues gold mine in of the Dargues gold mine in financing (Loan and financing (Loan and
for the greenfield Woodlark for the greenfield Woodlark Tasmania to Catalyst Metals.Tasmania to Catalyst Metals. takeover by OZ Minerals.takeover by OZ Minerals. NSW to Aurelia.NSW to Aurelia. Royalty) for the greenfield Royalty) for the greenfield
gold project.gold project. development of the Dargues development of the Dargues
gold mine in NSW.gold mine in NSW.
2018: Advisor to 2018: Advisor to 2018: Advisor to 2018: Advisor to 2017: Advisor to 2017: Advisor to 2016: Advisor to 2016: Advisor to 2014: Advisor to 2014: Advisor to
Explaurum LimitedExplaurum Limited Stanmore CoalStanmore Coal OZ MineralsOZ Minerals PanAustPanAust Discovery MetalsDiscovery Metals
Defence advisor in relation to Defence advisor in relation to Advised on the A$30m Advised on the A$30m Advised on the financing Advised on the financing Advised on the US$90mAdvised on the US$90m Advised in relation to the Advised in relation to the
the unsolicited A$89m the unsolicited A$89m acquisition of the Wotonga acquisition of the Wotonga strategy for the greenfield strategy for the greenfield refinancing of the Ban refinancing of the Ban recapitalisation options and recapitalisation options and
takeover by Ramelius takeover by Ramelius South Project from South Project from development of the development of the Houayxai and Phu Kam Houayxai and Phu Kam sale to Cupric Canyon.sale to Cupric Canyon.
Resources.Resources. Peabody Energy.Peabody Energy. Carrapateena copper-gold Carrapateena copper-gold copper-gold mines in Laos.copper-gold mines in Laos.
mine in SA. mine in SA.
T +61 2 9133 9000 | www.icapartners.com.auT +61 2 9133 9000 | www.icapartners.com.au
Trusted independent financial
advisor to the mining sector
2020: Advisor to
2021: Advisor to
2021: Advisor to
2019: Advisor to
Diversified Minerals
Cassini Resources
Geopacific Resources
Diversified Minerals
Diversified Minerals
Advised on the A$20m sale
Joint defence advisor in
Advised on the US$100m
Advised on the A$100m
of the Dargues gold mine in
of the Henty gold mine in
financing (Loan and
relation to the A$76m
financing (Loan and Stream)
takeover by OZ Minerals.
NSW to Aurelia.
Royalty) for the greenfield
for the greenfield Woodlark
gold project.
gold mine in NSW.
2018: Advisor to
2016: Advisor to
2018: Advisor to
2017: Advisor to
2014: Advisor to
Explaurum Limited
PanAust
Discovery Metals
Stanmore Coal
OZ Minerals
Defence advisor in relation to
Advised on the US$90m
Advised in relation to the
Advised on the A$30m
Advised on the financing
recapitalisation options and
refinancing of the Ban
the unsolicited A$89m
acquisition of the Wotonga
strategy for the greenfield
takeover by Ramelius
Houayxai and Phu Kam
development of the
South Project from
sale to Cupric Canyon.
Resources. Tasmania to Catalyst Metals. 2020: Joint Advisor to Advised on the A$200m sale development of the Dargues
Peabody Energy.
Carrapateena copper-gold
copper-gold mines in Laos.
mine in SA.
Corporate and project finance advisory specialists T +61 2 9133 9000 | www.icapartners.com.au
and Australia are probably over.
Canada waved through Zijin Mining
Group’s acquisition of TSX-listed Neo
Lithium Corp last year, saying it saw no
risks to national security.
But speaking to the Globe and Mail in
June, Jonathan Wilkinson, Natural Re-
sources Minister, signalled a change in
stance. “I do think that it is appropriate for
us to pause and reflect on whether we will
allow those kinds of transactions going
forward,” he said.
This is not just a question of ownership
but also of offtake deals if material is be-
ing shipped to China for refining.
“Canada needs to ensure that it is
protecting itself in an area that is clearly
strategic and ensuring that those supply
chains will be robust for our allies,” Wilkin- Trusted independent financial
son said. advisor to the mining sector
The investment climate has just got a
lot chillier for Chinese operators and there
has already been a hostile reaction.
The DoD said on June 28 it was “aware
of the recent disinformation campaign”
against Lynas and other rare earth mining
companies operating in the US.
Trusted independent financial
This follows claims by US-based cyber-
advisor to the mining sector 2021: Advisor to 2021: Advisor to 2020: Joint Advisor to 2020: Advisor to 2019: Advisor to
Trusted independent financial
security firm Mandiant that a pro-China
propaganda campaign used fake social Lynas Rare Earths is the first of what could be many Australian critical minerals producers Cassini Resources Diversified Minerals Diversified Minerals
Geopacific Resources
Diversified Minerals
advisor to the mining sector
Advised on the US$100m
Advised on the A$20m sale
media accounts to try to stir up opposition to strike agreement with the US Government over supply Joint defence advisor in Advised on the A$200m sale Advised on the A$100m
to proposed new mines and plants. financing (Loan and Stream) of the Henty gold mine in relation to the A$76m of the Dargues gold mine in financing (Loan and
China’s Computer Emergency Re- for the greenfield Woodlark Tasmania to Catalyst Metals. takeover by OZ Minerals. NSW to Aurelia. Royalty) for the greenfield
gold project.
sponse Team (CERT) and embassy in While the immediate focus is on Rus- The era of globalised trade patterns in development of the Dargues
gold mine in NSW.
Washington did not respond to a Reuters sia’s role in the energy sector, there is a strategic commodities is over, according
request for comment. recognition that critical minerals could be to Freeland.
Friend-shoring is going to be “the big
It’s a warning sign of what may come
2021: Advisor to 2021: Advisor to next. 2020: Joint Advisor to 2020: Advisor to 2019: Advisor to
Geopacific Resourcespolarisation of critical “Being dependent on Diversified Minerals Diversified Minerals 2019: Advisor to
economic and geopolitical issue” going
if the geopolitical
Cassini Resources countries that
Diversified Minerals
2021: Advisor to
2021: Advisor to
2020: Advisor to
2020: Joint Advisor to
minerals supply turns ugly.
Joint defence advisor in
Advised on the US$100m Advised on the A$20m sale do not always share our perspectives on forwards and “the world has not yet really
Advised on the A$200m sale
Advised on the A$100m
Cassini Resources
Diversified Minerals
Diversified Minerals
Geopacific Resources
The MSP marks a new chapter in the
financing (Loan and Stream) of the Henty gold mine in global affairs, and that have shown the started to properly grapple with how big a Diversified Minerals
relation to the A$76m
financing (Loan and
of the Dargues gold mine in
Joint defence advisor in
Advised on the A$100m
Advised on the A$20m sale
Advised on the A$200m sale
Advised on the US$100m
Royalty) for the greenfield
NSW to Aurelia.
for the greenfield Woodlark story. The pressure to takeover by OZ Minerals. relation to the A$76m 2018: Advisor to 2018: Advisor to 2017: Advisor to 2016: Advisor to 2014: Advisor to
deal this is”.
critical minerals
Tasmania to Catalyst Metals.ability at times to use their control of some
financing (Loan and Stream)
of the Henty gold mine in
of the Dargues gold mine in
financing (Loan and
development of the Dargues
gold project.
decouple from China has been growing of these resources as a weapon, is not a Explaurum Limited Stanmore Coal OZ Minerals PanAust Discovery Metals
takeover by OZ Minerals.
NSW to Aurelia.
for the greenfield Woodlark
Tasmania to Catalyst Metals.
Royalty) for the greenfield
- Andy Home, Reuters
gold mine in NSW.
gold project.
for several years but Russia’s invasion of very good strategy,” warned Canada’s Defence advisor in relation to Advised on the A$30m Advised on the financing Advised on the US$90m Advised in relation to the
development of the Dargues
gold mine in NSW.
Ukraine has concentrated minds. Wilkinson. the unsolicited A$89m acquisition of the Wotonga strategy for the greenfield refinancing of the Ban recapitalisation options and
takeover by Ramelius South Project from development of the Houayxai and Phu Kam sale to Cupric Canyon.
Resources. Peabody Energy. Carrapateena copper-gold copper-gold mines in Laos.
mine in SA.
2018: Advisor to 2018: Advisor to 2017: Advisor to 2016: Advisor to 2014: Advisor to
Explaurum Limited Stanmore Coal 2018: Advisor to 2017: Advisor to Discovery Metals 2014: Advisor to
PanAust
OZ Minerals
2018: Advisor to
2016: Advisor to
Defence advisor in relation to Advised on the A$30m Advised on the financing Advised on the US$90m Advised in relation to the T +61 2 9133 9000 | www.icapartners.com.au
Explaurum Limited
OZ Minerals
PanAust
Stanmore Coal
the unsolicited A$89m acquisition of the Wotonga strategy for the greenfield refinancing of the Ban recapitalisation options and Discovery Metals
Advised on the A$30m
Advised on the US$90m
Advised on the financing
takeover by Ramelius Defence advisor in relation to development of the Houayxai and Phu Kam sale to Cupric Canyon. Advised in relation to the
South Project from
strategy for the greenfield
refinancing of the Ban
acquisition of the Wotonga
Resources. the unsolicited A$89m Carrapateena copper-gold copper-gold mines in Laos. Houayxai and Phu Kam recapitalisation options and
Peabody Energy.
takeover by Ramelius
South Project from
sale to Cupric Canyon.
development of the
mine in SA.
Trusted independent financial Resources. Peabody Energy. Carrapateena copper-gold copper-gold mines in Laos.
mine in SA.
advisor to the mining sector
T +61 2 9133 9000 | www.icapartners.com.au
T +61 2 9133 9000 | www.icapartners.com.au
ABN: 55 158 181 241 AFSL: 470003
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 7
2021: Advisor to 2021: Advisor to 2020: Joint Advisor to 2020: Advisor to 2019: Advisor to
Geopacific Resources Diversified Minerals Cassini Resources Diversified Minerals Diversified Minerals
Advised on the US$100m Advised on the A$20m sale Joint defence advisor in Advised on the A$200m sale Advised on the A$100m
financing (Loan and Stream) of the Henty gold mine in relation to the A$76m of the Dargues gold mine in financing (Loan and
for the greenfield Woodlark Tasmania to Catalyst Metals. takeover by OZ Minerals. NSW to Aurelia. Royalty) for the greenfield
gold project. development of the Dargues
gold mine in NSW.
2018: Advisor to 2018: Advisor to 2017: Advisor to 2016: Advisor to 2014: Advisor to
Explaurum Limited Stanmore Coal OZ Minerals PanAust Discovery Metals
Defence advisor in relation to Advised on the A$30m Advised on the financing Advised on the US$90m Advised in relation to the
the unsolicited A$89m acquisition of the Wotonga strategy for the greenfield refinancing of the Ban recapitalisation options and
takeover by Ramelius South Project from development of the Houayxai and Phu Kam sale to Cupric Canyon.
Resources. Peabody Energy. Carrapateena copper-gold copper-gold mines in Laos.
mine in SA.
T +61 2 9133 9000 | www.icapartners.com.au
Exploration Diamond Drilling Geotechnical Drilling
IPO WI IPosATCHPOs Shallow Angle Drilling Aircore Drilling
Multipurpose RC Drilling
Nothing standing of the pitfalls and things that you closed, so it probably won’t impact us per
“Each time you start with a better under-
se,” Hazelden said.
As an unlisted company, OD6 was
didn’t do as well or that you can do better, part of the same pegging rush which saw
or all the things that you didn’t really know
rare about that make a difference to a company.” Meeka and Mount Ridley stake substantial
packages of ground around Esperance.
Hazelden was managing director of Ka-
lium Lakes at the time of the potash com- The only difference was it did not yet have
new role pany’s listing in late 2016, a year in which the cash to start large-scale exploration
less than a dozen new floats made it to
across the Splinter Rock and Grass Patch
the bourse. While he found it was a much
smoother process this time around, he projects.
Up to 192 holes are expected to be
rett Hazelden has become accustomed is still somewhat counting his lucky stars drilled in OD6’s maiden aircore pro-
Bto entering new industries just as they that OD6 was able to rake in the required gramme which was due to kick off at Splin-
are gaining traction with investors. cash for its IPO before market headwinds ter Rock at the time of print. Some 65km
Having dabbled in iron ore and potash picked up prior to the end of the last finan- of exploration track upgrades have been
as both commodities were becoming big cial year. completed for the campaign, with an ad-
business in Western Australia, Hazelden It is understood a number of upcoming ditional 45km of road reserve drilling ap-
is now trying his hand at clay-hosted rare resources IPOs have been either delayed proved by the Shire of Esperance.
earths as managing An aeromag survey
director of the newly- will also be flown over
listed OD6 Metals Ltd. the company’s 4,000sq
OD6 has joined the km land position in a
likes of Meeka Metals bid to identify future drill
Ltd and Mount Ridley targets for both Splinter
Mines Ltd in the emerg- Rock and Grass Patch.
ing rare earths north of OD6 exploration
Esperance. The com- manager Tim Jones
pany is the product of recently relocated to
a “mining the database” Esperance on a perma-
exercise by Darren nent basis to oversee
Holden’s Odette Geo- the upcoming maiden
science Pty Ltd. drilling programme and
Hazelden, who was all future campaigns.
a key figure in the hum- What metallurgist
ble beginnings of both Hazelden lacks in direct
Iron Ore Holdings and rare earths operating
Kalium Lakes Ltd, is experience, he believes
already able to draw OD6 was due to start maiden drilling at Splinter Rock at the end of July he and the rest of the
comparisons between OD6 team can make up
his initial exposure to iron ore and potash or pulled altogether on the back of this cur- for with a diverse range of skillsets.
and his newest foray into “flavour of the rent investment malaise, although major “My strength is I’ve taken a company
month” rare earths. corporate finance groups such as BDO from my garage to something which is in
“There’s a bit of déjà vu but I do think have reported the pipeline for smaller list- commissioning at the moment, so I know
you get better at it every time,” Hazelden ings still remains strong. the financing process and I know the per-
told Paydirt following OD6’s June 22 list- “The current environment has turned mitting approvals process,” he said.
ing via an $8 million IPO. just recently, but we managed to get that “Darren brings the geological back-
$8 million in the bank before this window ground and everything else around that,
Seismic Drilling Australia runs a highly experienced and efficient drilling
The Reliable operation which caters for its’ clients’ needs, the safety and wellbeing of its
highly skilled workforce, and on delivering a service with low fuss and minimal
Choice for environmental impact.
Seismic Drilling Australia is Australia’s first indigenous owned and operated
Exploration multipurpose drilling contractor and a Supply Nation registered indigenous provider.
Drilling Phone: +61 8 9302 6777 Email: [email protected]
Web: seismicdrilling.com.au
APPROVED APPROVED
COMPANY COMPANY
AS/NZS 4801 ISO 9001
Occupational Health & Quality Management
Safety Management Systems
Systems
Page 8 aUgUST 2022 aUSTRaLIa’S PaYDIRTRALIA’S PAYDIRT
PAGE 1 DECEMBER 2021 - JANUARY 2022 AUST AUSTRALIA’S PAYDIRT DECEMBER 2021 - JANUARY 2022 PAGE 1
Exploration Diamond Drilling Geotechnical Drilling
IPO WATCHIPOs Shallow Angle Drilling Aircore Drilling
Multipurpose RC Drilling
Brett Hazelden
and then you’ve got a few experts that we Hazelden said the company’s primary
will bring in for specific rare earths pro- goal for the next 12 months would be to de-
cessing technologies and the like. We’ll be liver a sizeable maiden resource at Splin-
working with CSIRO and a couple of the ter Rock and also start exploring options to
other universities in Australia to get the one day produce “green” rare earths.
best process and the best understanding – Michael Washbourne
out of the geo-metallurgical relationship.”
Performance of resources IPOs since May 2022
COMPANY ASX TICKER IPO AMOUNT LISTING DATE PERFORMANCE SINCE LISTING
Solstice Minerals Ltd SLS $8 million May 2 Down 17.5% to 16.5c
Allup Silica Ltd APS $5 million May 2 Down 56.5% to 8.7c
Sarama Resources Ltd SRR $12 million May 2 Down 25% to 15c
Sierra Nevada Gold Inc SNX $12.5 million May 3 Down 12% to 44c
Koba Resources Ltd KOB $8 million May 3 Down 22.5% to 15.5c
Southern Cross Gold Ltd SXG $9.1 million May 16 Up 77.5% to 35.5c
Aurora Energy Metals Ltd 1AE $8 million May 18 Down 22.5% to 15.5c
Bellavista Resources Ltd BVR $6.5 million May 25 Down 1.5% to 19.7c
TG Metals Ltd TG6 $6 million May 26 Down 37.5% to 12.5c
Demetallica Ltd DRM $15 million May 26 Down 22% to 19.5c
Nordic Nickel Ltd NNL $12 million June 1 Down 12% to 22c
Uvre Ltd UVA $6 million June 7 Down 30% to 14c
Southern Palladium Ltd SPD $19 million June 8 Up 37% to 68.5c
Cavalier Resources Ltd CVR $5 million June 10 Down 5% to 19c
Kingsland Minerals Ltd KNG $4.7 million June 14 Down 27.5% to 14.5c
OD6 Metals Ltd OD6 $8 million June 22 Down 22.5% to 15.5c
Leo Lithium Ltd LLL $100 million June 23 Down 39% to 43c
Bindi Metals Ltd BIM $4.8 million June 28 Down 2.5% to 19.5c
Oceana Lithium Ltd OCN $6 million July 1 Up 112.5% to 42.5c
Metalsgrove Mining Ltd MGA $6.4 million July 6 Down 40% to 12c
Regener8 Resources NL R8R $4.5 million July 8 Down 20% to 16c
Sarytogan Graphite SGA $8.6 million July 18 Up 60% to 32c
Upcoming floats and listings: Chalkos Metals Ltd (July 20), Critical Minerals Group Ltd (July 22), Sierra Rutile Holdings Ltd (July 27),
Octava Minerals Ltd (August 1), Bayrock Resources Ltd (August 11), Heavy Rare Earths Ltd (August 17), Aeramentum Resources
Ltd (TBA), Coolabah Metals Ltd (TBA), Iltani Resources Ltd (TBA), Summit Minerals Ltd (TBA)
Seismic Drilling Australia runs a highly experienced and efficient drilling
The Reliable operation which caters for its’ clients’ needs, the safety and wellbeing of its
highly skilled workforce, and on delivering a service with low fuss and minimal
Choice for environmental impact.
Seismic Drilling Australia is Australia’s first indigenous owned and operated
Exploration multipurpose drilling contractor and a Supply Nation registered indigenous provider.
Drilling Phone: +61 8 9302 6777 Email: [email protected]
Web: seismicdrilling.com.au
APPROVED APPROVED
COMPANY COMPANY
AS/NZS 4801 ISO 9001
Occupational Health & Quality Management
Safety Management Systems
Systems
PAGE 1 DECEMBER 2021 - JANUARY 2022 AUSTRALIA’S PAYDIRT AUSTRALIA’S PAYDIRT DECEMBER 2021 - JANUARY 2022 PAGE 1
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 9
neWs
Genesis gobbles up Dacian,
regains appetite for St Barbara
aleigh Finlayson’s Genesis Minerals Ltd comes less than a month after Dacian sus-
Rremains in talks with embattled miner St pended open-pit mining at Jupiter and an-
Barbara Ltd over a potential business com- nounced plans to halt underground works
bination after executing the first move in its as production costs continued to spiral out
bid to consolidate the Leonora gold district. of control at an operation which has failed
Genesis is set to acquire Dacian Gold to live up to expectations since pouring first
Ltd and the beleaguered Mt Morgans op- gold in 2018.
erations via a unanimously recommended Finlayson described the Dacian deal as a
conditional off-market takeover which car- “natural fit” for Genesis, especially with the
ries an implied equity value of $111 million. company’s 2 moz resource at Ulysses ripe
In announcing the proposed merger and for mining and processing.
accompanying $100 million capital raise, “This transaction is the first step towards
Genesis confirmed it had also resumed our vision of building the premium Austral-
negotiations with St Barbara over “regional ian gold miner, targeting plus-300,000 ozpa
consolidation opportunities” after initial dis- of sustainable, high quality gold produc-
cussions between the two companies re- tion,” Finlayson said.
portedly broke down in early June. “Sensible M&A is a key component of
St Barbara also confirmed the talks were our multi-pronged growth strategy and our Raleigh Finlayson
back on, but stressed no agreement had team has a strong track record of execut- Genesis board, with Tommy McKeith and
been reached and there was no guarantee ing transactions that deliver outstanding Nev Power stepping aside as non-execu-
of one being struck. value for shareholders. Consolidation of tive directors.
Speculation of large-scale consolidation the world-class Leonora district is a natural Wilkes urged Dacian shareholders to ac-
around Leonora has been rife for several fit for Genesis. cept Genesis’ implied offer of 10.2c/share.
months since former Saracen Mineral Hold- “The complementary nature of the com- “Since pouring first gold in March 2018,
ings and Northern Star Resources Ltd boss bined company’s significant resources and Dacian has produced over 500,000oz from
Finlayson assumed the managing direc- infrastructure, exploration upside and other its Mt Morgans operations, yet has contin-
tor’s position at Genesis and unveiled plans regional growth opportunities make this ued to face operational challenges in the
for his new company to quickly become a the right deal for both Genesis and Dacian current environment that led to a review of
300,000 ozpa gold producer despite not shareholders.” the operating strategy and the decision to
owning any processing facilities. Genesis intends to conduct a strategic suspend mining activities,” he said.
The proposed acquisition of Mt Morgans review of Mt Morgans over the next six “This transaction secures the company’s
months to determine the promising future, provides capital to con-
best opportunity for a restart duct and accelerates our extensive drilling
of operations. campaign to test the potential for a large-
Should the merger be scale, open-pit mining operation at Jupiter
successful, Dacian share- and allows Dacian shareholders to benefit
holders will emerge with from the significant potential regional con-
about 25.5% of the com- solidation opportunities on offer as share-
bined entity. The offer re- holders in the enlarged Genesis entity.”
mains subject to a minimum Meanwhile, St Barbara finished FY2022
50.1% approval and other on a high after delivering its best quarterly
market standard conditions. output of the period and meeting the re-
Dacian chairman Mick vised annual production guidance.
Wilkes will be invited to join Group production across the company’s
the Genesis board upon three assets totalled 280,746oz gold, head-
completion of the merger, lined by a contribution of 191,459oz from its
while chief executive Dale Leonora operations.
Richards – who was only St Barbara boasts the largest resource
recently elevated to the role base (10.3 moz) in the Leonora district,
following the resignation of with the underground mine portal construc-
managing director Leigh tion at the newly acquired Zoroastrian de-
Junk – is set to be appointed posit expected to begin early next year. The
chief geologist. company is also looking to expand capacity
Former Saracen chair- at its Gwalia processing plant from 1.4 mtpa
man Tony Kiernan will also to 2.1 mtpa.
renew ties with Finlayson
Genesis is set to acquire Dacian’s struggling Mt Morgans and head up the new-look – Michael Washbourne
operations via a recommended takeover valued at $111 million
Page 10 aUgUST 2022 aUSTRaLIa’S PaYDIRT
oPInIon
Diggers & Dealers is
always an exciting time,
but the 2022 edition
might be the most
eagerly anticipated that
I can remember...
The WA mining and resources
or starters, it’s the first Diggers since 2019 that will be held
Fwith borders properly open, both domestically and interna- sector has been very open in
tionally. saying that it can, must and will do
Given last year’s event with borders shut attracted a near-re-
cord 2,500-plus delegates (and a further 4,000 watching on lives- “ much better in this space.
tream), you can imagine what interest in the 2022 event might be
like. events at the Goldfields Arts Centre inclusive ones.
Secondly – and this has been a theme for several years now In line with that, Dr Moyo might be the first female keynote at
– Diggers arrives at a time of significant positivity, buzz, momen- Diggers but I’m certain she won’t be the last.
tum and excitement for mining and resources, not just in Western
Australia but around the world. Rob Carruthers is Acting Chief Executive of the Chamber
Looking through the presenter list, commodities featured in- of Minerals and Energy of WA
clude gold, vanadium, uranium, iron ore, copper, lead, silver,
nickel, cobalt, titanium, zirconium, rare earths, lithium, tailings re-
processing and graphite. And that’s just the first day!
The corresponding operations come in a great range of shapes
and sizes, cover a good portion of the development spectrum
and not only pull in every corner of WA but a variety of locations
across Australia and, indeed, globally.
Knowing that we’ll be hearing from companies with projects in
Mozambique, Canada, Cote d’Ivoire, Finland, Bosnia and Herze-
govina, Serbia, Mexico, Senegal, Burkino Faso, Guinea and the
US is a reminder of the worldwide importance of the WA mining
and resources community and Australian investors.
It’s also extremely pleasing to see Dr Dambisa Moyo will be-
come the first female keynote speaker in Diggers history.
First and foremost, the renowned economist will deliver some
very valuable insights into the challenges and opportunities fac-
ing mining and resources across all jurisdictions. She also repre-
sents what I see as an ever-growing commitment to diversity and
inclusion at Diggers & Dealers.
Diversity and inclusion have long been key issues for CME
and its member companies. They have been even more strongly
brought into focus in recent times by the Parliamentary Inquiry
into Sexual Harassment of Women in the FIFO mining sector.
The WA mining and resources sector has been very open in
saying that it can, must and will do much better in this space. No
instance of harassment or assault is acceptable, and there is zero
tolerance in this regard. CME member companies are already
undertaking a range of initiatives to ensure working environments
and work-adjacent settings are both safe and inclusive.
However, those efforts can only be truly effective if these goals
are shared by the whole ecosystem of our sector, including the
major industry events we attend. I’m extremely confident that
participants at Diggers & Dealers will set the right standard and
CME appreciates the commitment by its organisers to making all
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 11
neWs
Enough is enough: Inquiry slams
‘appalling’ behaviour
estern Australia’s mining indus- policy changes proposed as part of the re- “If there’s no NDA and no confidentiality
Wtry may soon undergo strict policy port but conceded they could pose logisti- agreement, then the culture of silence is
changes to better protect its employees cal nightmares. removed and the industry is small enough
who have been victim to, or are vulner- “We have recommended the industry that repeat offenders will come to light.”
able to, sexual harassment and assault. explore options, which could operate ef- Following the report, Mettam labelled it
More than 20 potential strategies were fectively and fairly to prevent habitual sex- a “corporate failure” that the WA Govern-
submitted to the industry and WA Gov- ual harassment offenders continuing to be ment and employers had failed to prevent
ernment after a 178-page parliamentary re-employed in the mining workplace,” she wrongdoing at work sites.
inquiry titled “Enough is Enough” fielded said, referring to the “blacklist” register. “This represents a failure of the industry
nearly 100 accounts of alleged harass- “It is a complex policy issue but it’s too to protect its workers and raises real ques-
ment, assault and rape in just over a year. important an issue to ignore.” tions about why government was not bet-
Proposals from the inquiry included a Nickels also thought implementing the ter across this safety issue,” she said.
registered offender “blacklist” which would register could be “challenging” but said “To hear the lived reality of the taunts, at-
track the behaviour of workers as they industry-wide changes were imperative to tacks and targeted violence, the devasta-
move between companies and work sites prompt open conversations. tion and despair the victims experienced,
to notify employers of past misconduct. “We’ve seen some debate over the last the threats or loss of their livelihood that
Other proposals included a government few years about the use of non-disclosure resulted, was shattering and it’s complete-
forum to further investigate culture issues, agreements for these types of incidents,” ly inexcusable.
dismissal of employees that ask for sexual she said. “What I’m seeing now is there “It is simply shocking this could be tak-
favours from colleagues, improved camp- is much less appetite for confidentiality ing place in the 21st century in one of the
site security such as CCTV coverage and or NDAs to be used in resolving these is- State’s most lucrative industries.”
improved lighting, sharing data between sues at the workplace level. This means Nickels said any new change to culture
the industry and police, and appointing an individuals and employers would be able would not only come from the top execu-
expert panel within WorkSafe WA to inves- to disclose these incidents during formal tive level, but in a combination with atti-
tigate new reports of misconduct. or informal reference checks. tudes from the ground floor.
DLA Piper partner and labour law spe-
cialist Leanne Nickels said although the
industry has made past policy changes to
curb harmful behaviour, the inquiry could
now fuel a sector-wide shift.
“We have seen some changes already
being implemented over the last couple
years such as restrictions on alcohol con-
sumption,” Nickels told Paydirt. “Over the
years, working with clients in this space,
I have found people and companies are
changing in terms of their practices but I
now think this inquiry will accelerate some
of those changes at an industry wide level,
rather than at just specific work sites.”
The inquiry followed a string of allega-
tions from female employees at major
mine sites across the State, some that
employ up to hundreds of people, which
prompted major coverage in the media.
Inquiry chair and WA Shadow Health
Minister Libby Mettam labelled the latest
bout of misconduct allegations as an “ap-
palling range of behaviours”.
Specific allegations detailed a number of
women being touched without permission
in front of other colleagues, while others
were propositioned for sexual favours by
superiors and one even recounted being
“knocked unconscious” to find her pants
“around her ankles”.
Mettam is eager to enact some of the
WA Shadow Health Minister Libby Mettam chaired the inquiry which contained nearly 100
complaints of sexual harassment and assault from mining employees in just over a year
Page 12 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Some of the 24 total proposals forwarded to WA’s mining industry
and State Government as part of the inquiry
The register
An industry-wide list of offenders that would allow future employers in the
sector to view their past behaviour
The forum perienced rape over a period spanning at
Appointing a forum to hear and document historical allegations of sexual least five years.
harassment in the industry with potential to pursue compensation for victims “This is not the kind of company we
want to be,” Rio Tinto chief executive Ja-
The dismissal kob Stausholm said at the time. “I offer my
A zero-tolerance policy where employers dismiss workers who engage in heartfelt apology to every team member,
inappropriate behaviour towards colleagues past or present, who has suffered as a re-
The new security sult of these behaviours…I feel shame and
Tighter security for job sites including improved lighting and CCTV coverage enormous regret to have learned the ex-
to allow vulnerable employees to feel safer in remote areas and on work tent to which bullying, sexual harassment
camps and racism are happening at Rio Tinto.”
Rio Tinto’s report not only outlined spe-
The expert group cific instances of behaviour that was in-
An expert unit working within WorkSafe WA to investigate and deal with new appropriate, but also revealed constant
reports of sexual harassment everyday sexism made negative impacts
on female workers’ self-esteem, personal
relationships and health.
“My view of most problems is it requires
a community to solve them,” she said. “It’s Acts of sexism included unwanted com-
not just a top down or bottom up thing, it’s ments on appearance, assumptions of
both. Top down can empower those below competence and that they were only hired
to address issues while bottom up can to “fulfil female-diversity quotas”.
drive the grassroots need for change.” As a result, some female workers said
Acting Chamber of Minerals and Energy they ate meals alone in their room to avoid
WA chief executive Rob Carruthers was in harassment or being out late after dark.
favour of bringing new ideas into the indus- The study also showed 28% of Rio
try when given they are viable. Tinto’s female employees reported experi-
“Any such process needs to be practical ences of sexual harassment. For men, it
and drive better outcomes, so we’d review was 7%. Accounts of sexual harassment
that in full detail,” he said. were also seen as more frequent on FIFO
“To those that have been impacted by work camps.
sexual assault and harassment in our in- Meanwhile, BHP last year committed
dustry, on behalf of our industry, I apolo- $300 million to funding security upgrades
gise.” DLA Piper partner Leanne Nickels – including guards, CCTV cameras and
Mettam did sing praise for the strides better lighting – after designating sexual
made by WorkSafe WA, an agency within tor to raise the standards of respect to- assault as a safety risk in 2018.
the Department of Mines, which has in- wards their female colleagues. Nickels hopes the industry continues
cluded plans to improve data collection “The Government of Western Australia to scrutinising its policies, as well enact a
on sexual assault and harassment at mine stands with victims and we want to sup- change in attitude towards these issues
sites. port them in any way that’s possible,” he raised from the inquiry.
However, she said despite leaders in the said. “This inquiry really shifts the focus
industry stressing an importance on safety “This is a timely reminder of the work from sexual harassment being an HR or
and curbing sexual harassment, little ma- that needs to be done by men to improve discrimination issue to being a safety is-
terial change has been made. the situation in this state.” sue,” she said. “We’ve seen this industry
“All companies told us that staff safety During the publicised allegations to- make significant improvement in its safety
was their highest priority. The level of sex- wards the sector’s majors over the past record when it’s given attention both from
ual harassment in their companies indi- two years, a number of companies had the top but also at a grassroots level.
cates that this was not the case,” she said. taken it upon themselves to undertake in- “We’ve seen recent changes in the
“The failure of companies to understand ternal reviews or discipline workers. legislation in the safety space and that’s
what was happening in their workplaces Since 2020, BHP Ltd has fired 48 staff meant many organisations are looking at
must be seen as a sign of corporate fail- for inappropriate behaviour, while Rio their policies, plans and approaches to
ure. Tinto Ltd terminated at least 12 workers safety.
“It was clear that company processes for sexual assault or harassment. “Moving this topic into the safety space
were often ineffective; a more honest Rio Tinto took the initiative of releasing means it’s no longer a gender-based is-
reading could suggest they were more fo- its own internal review earlier this year sue, but an organisational imperative to
cused on protecting companies and their which included accounts of bullying, rac- get it right because safety concerns eve-
reputations than serving the best interests ism and sexism. rybody on a site.”
of people who had been harassed.” The report saw more than 20 women – Fraser Palamara
WA Minister for Mines and Petroleum of a total 10,300 respondents come for-
Bill Johnston called upon men in the sec- ward with allegations of attempted or ex-
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 13
5-6 October 2022
Perth, Western Australia
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sIte VIsIt
Ainscough considers
Kambalda as kin
asting his mind back to his days as a the chief geologist for the St Ives gold mine. valuations as far back as 2007, recently
Cplucky senior geologist almost three “I walked up and down the terrace at the peaking as high as $US48,226/t in March.
decades ago, Lunnon Metals Ltd man- time and got three job offers,” he said. “The With no shortage of high-grade, shal-
aging director Ed Ainscough still vividly one I took was in Kambalda and I stayed low drill hits at KNP, Ainscough continues
remembers the precise moment he intro- there for 10 months before my working visa to marvel at the Kambalda nickel district
duced his wife and children to Kambalda eventually started to run out.” which extends for more than 70km and
for the first time. Little did he know he would still be work- has historically produced more than 1.6mt
“My wife hadn’t been to this part of ing in Kambalda 35 years later, today lead- of nickel.
Australia before and I remember the cold ing a nickel explorer on the same ground “The longevity of a lot of professionals in
dawning on her face as we were picked he worked on as that very green geo. Kambalda is very much due to the signifi-
up by the chief geologist in Kalgoorlie. We Since listing in June of last year, Lunnon cant, amazing prospectivity for nickel and
were driving out to site and I could see the has netted a warm reception from its work gold in such a small space,” he said.
colour draining on her face like, ‘oh my god, at the aptly named Kambalda nickel project “You had this ability as a geologist or
where have I come to?’,” he recounted to (KNP), recently achieving an all-time high mining engineer [in previous years] to just
Paydirt. share price of $1.24 in April. get amazing exposure. It’s no surprise the
It was admittedly a shock for his wife who KNP, which shares grounds with Gold people seeded out into the industry from
hailed from New Zealand’s lush green hills. Fields Ltd, today commands a 2.2mt @ WMC after it got bought by BHP [Ltd] have
But like Englishman Ainscough, she has 2.9% nickel resource. been successful because they’ve had such
now grown to hold a soft spot for the small It’s not only considerable exploration amazing training.
town outside of Kalgoorlie where memo- success in its own right, but doubly impres- “It’s definitely rooted in the geological
ries have been made. sive to be had on brownfields well-travelled opportunity and the endowment to have
“The funny part is we ended up living in decades before by WMC. that longevity of nearly 60 years now; the
that area for eight years and now when we Kambalda’s winding history shaped in sheer amount of nickel and gold there. It’s
come back for visits, we both look at that swings and roundabouts, a “circle of life” as just an incredible 30-40km from Kambalda
bush as completely green and lush,” Ain- described by Ainscough, is very reflective to south of Foster and I definitely credit the
scough said. “She struggles to remember of the nickel market itself. geology here for keeping me interested.”
how dry she thought it looked in 1994.” The commodity has grown in popular- Looking back on his formative days and
This anecdote Ainscough holds close to ity over recent years as a poster child for camaraderie formed in the town, Ains-
his heart was his second stint in Kambalda, a low-carbon emission future, powered by cough affectionally calls it the “class of ’98”.
having first come to Kalgoorlie in 1987 as batteries such as those in EVs, alongside Some of his peers from that time include
an expat “with no job”. He would soon go its peers lithium and copper. Silver Lake Resources Ltd managing direc-
on to cut his teeth as a graduate geologist Nickel’s refreshed worth beyond its use tor Luke Tonkin and Rex Minerals Ltd chief
in Kambalda before eventually working as in galvanising steel has seen it rival old executive Richard Laufmann, among many
Page 16 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Infrastructure such as the Foster shaft serves
as a reminder of the old WMC days
“ We made the right
decision in January
to go as hard as we could at
Baker… I think it was one of
those situations where you
make your own luck.
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 17
sIte VIsIt
more who have all gone on to experience I look back and think I think it was one of those situations where
success at home and abroad. you make your own luck.”
Lunnon continues to carve out its own I’m extremely lucky Luck can be a generous term to pin to
name in the West Australian nickel space, that fate decided I should the Lunnon team, which actually formed
with a notable achievement being the dis- its roots nearly 10 years ago. The compa-
covery of the Baker shoot in January which “ orbit Kambalda. ny’s management team includes explora-
brought with it an early hit of 7m @ 9.22% tion and geology manager Aaron Wehrle,
nickel. Less than nine months later, Bak- who also once worked for WMC. Funnily
er contributed 15,800t @ 2.8% nickel to a historic shaft at the Foster target requires enough, Wehrle now lives next door to the
KNP’s resource. dewatering before it can be used due to it old house Ainscough and his family called
In mid-July, Baker performed again, being “flooded to the surface”. home in Kambalda.
delivering its best hole to date at 23m @ “The plan at the moment is to push as Such coincidences serve as a reminder
6.78% nickel, including 14m @ 8.13% and hard and as fast as possible on the permit- to the long history the Lunnon team has in
7m @ 5.92%. ting,” Ainscough said. “The data collection town.
A total of 8,000m RC and 3,000m dia- and submission you need to make to the “When we IPO’d, we had been working
mond drilling has been completed at Baker department, that’s light touch work that we on this ground for a long time,” Ainscough
and ongoing results will help to infill and can push ahead with aggressively. The said. “So, outside looking in, people only
extend the most recent KNP resource es- plan is to get those done and get them in see your company from when you hit the
timate. so that we then have the option to start de- bourse.
watering.” “We’ve all actually been involved in and
A $30 million capital raising in around Kambalda for more than 20 years
mid-April will allow Lunnon to push and we do feel like we have had a really
ahead on the permitting front. successful 12 months, but it hasn’t been an
“We’ve allocated some money overnight success.
from the April raising towards the “To come inside the drilling coverage of
dewatering,” Ainscough said. “We a company like WMC that knew the ground
are now going out and speaking to intimately, and to still bring up good, shal-
some of the companies that do the low, high-grade discoveries, it speaks vol-
pumping. umes for what a fantastic patch of ground
“Bellevue Gold [Ltd] is prob- Kambalda is.
ably the best analogue for what we “You never go anywhere as a young
potentially might do, where they man, in my case working overseas, think-
dewatered Bellevue gold mine… ing you’ll be there 35 years later. Now that
they dewatered down to 250m, it has happened, unfolding progressively
re-entered the decline and started over those three decades – bringing up
drilling from underground.” a family in Kambalda, having a child in
Ainscough confesses
Lunnon managing director Ed Ainscough had little he did not “have a crystal
idea the mark Kambalda would have on his career ball” after the April raising
when he cut his teeth as a graduate geologist more came before the global re-
than 30 years ago sources market entered a
period of turbulence.
Tribulations have been fuelled
While shallow, high-grade hits are al-
ways a blessing for any explorer, Ains- by conflict in Ukraine, supply chain
cough is ready to push the drilling under- disruptions, investor uncertainty,
ground to take the project to the next level. fuel constraints and inflation.
“At Baker, and I say this a lot, we’re “The timing [of the raising] was
blessed because [the mineralisation] is chiefly driven by the fact we were
only 100m deep on average,” he said. working on the acquisition of the
“However, the geology of nickel deposits in new mineral rights to the ground
Kambalda are very long and plunging with on the north side of Lake Lefroy
a short strike length – they’re like ribbons from Gold Fields,” Ainscough
or cigars, pinching and swelling like an egg said. “We probably would have
carton. raised the money a bit earlier but
“There comes a point when you’re ex- because that deal was on foot, we A WMC relic trapped in time
ploring from surface and with the risk-re- had to wait until we announced it.
ward of continuing to drill ever deeper dia- “In hindsight, after we came out of the
mond holes, you have to commit and get trading halt, I think we went out to about Kalgoorlie and enjoying the career from a
underground to be able to drill it on a much $1.30/share on the market which tells me professional geology point of view because
closer spacing. people liked the deal and that we doubled it’s such a stimulating place – I look back
“That’s to get that inevitable uplift that our footprint. and think I’m extremely lucky fate decided I
other junior companies like Independence “Sitting here in July…we look back and should orbit Kambalda.”
[IGO Ltd], Panoramic [Resources Ltd] and have to say we made the right decision – Fraser Palamara
Mincor [Resources NL] have achieved. in January to go has hard as we could at
You can’t keep doing it at surface.” Baker and get that drilled and get those re-
A new decline is planned for Baker while sults out because they were good results.
Page 18 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Aaron Wehrle holds a similar genesis to Ainscough, also once working for WMC
The KNP core shed houses the key exploration results Lunnon has
generated from nearly 36,000m of drilling since the IPO in June last year
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 19
coVeR
Africa sparks new chapter
for Sandfire
O nce first copper concentrate is produced from the Motheo project
in Botswana next year, Sandfire Resources Ltd will boast three
operating assets on three different continents. It will mark the latest step
in a remarkable journey from parochial West Australian junior miner with
a dwindling reserve base to globalised mid-tier copper miner with what
feels like almost infinite organic growth options.
he metamorphosis has taken just three fire into a global hunt for complementary Sandfire paid $167 million in cash and
Tyears. At the end of 2018, Sandfire and eventually replacement assets. scrip for Mod, delivering it both T3 and
looked the classic Australian junior min- However, with the global copper dis- the wider 12,000sq km Motheo explora-
er. Its high-grade DeGrussa copper-gold covery pipeline as dry as it has been in tion package.
mine in WA hadn’t missed a beat since decades, options were limited. The Mod DFS had shown $250 million
discovery in 2009, producing up to 60,000 It finally settled on ASX-listed junior of capex could deliver a 29,000 tpa cop-
tpa of copper at margins which were the Mod Resources, which had built a huge per-in-concentrate operation with a NPV
envy of the entire resources sector. landholding on the Kalahari copper belt in of $309 million and while hardly compa-
The problem was that the contained, the Southern African nation of Botswana rable to the high-grade cash dispenser
discrete nature of the VMS deposits at and had already produced a positive DFS DeGrussa had become, Motheo did offer
DeGrussa meant further finds in the Dool- for the recently discovered T3 copper de- the long-term growth potential Sandfire
gunna district were unlikely, forcing Sand- posit. was seeking.
Page 20 aUgUST 2022 aUSTRaLIa’S PaYDIRT
“We had been scan- contained metal respectively.
ning the globe but for “ That was the greatest attraction to “Base metal assets which of-
a mid-tier base metals Sandfire - the scale and nature fer this combination of scale,
miner there are hardly of the opportunity. grade, mine life and exploration
any opportunities with a upside are extremely rare glob-
genuine pathway to build ally,” Simich said.
something,” Sandfire The speed of the transac-
managing director Karl Simich told Pay- “We had made contact with both own- tion has been replicated in the integration
dirt. “But, in Botswana, Mod had built a ers at various times about whether there process.
development-ready project and a domi- was an opportunity to engage on their MATSA made an instant impact on
nant land position. That was the greatest individual 50% share,” Simich explained. group production, delivering 12,536t
attraction to Sandfire – the scale and na- “So, we asked ourselves why not do the copper, 16,072t zinc, 1,901t lead and
ture of the opportunity. It is an area which whole thing? And everyone within Sand- 551,011oz silver in the first two months of
hasn’t been explored to any great extent fire all came to the same conclusion. So, Sandfire’s ownership, producing EBITDA
and, until Mod’s involvement, largely we said, ‘let’s do it’.” of $98.6 million at a 63% margin.
without any significant modern technol- The company swiftly put together a “Given it was such a big acquisition for
ogy, application or geological theory.” $US1.86 billion offer which was readily the size of company we are, the whole
For all Motheo’s attributes, Sandfire accepted by the vendors and completely process has been smooth, and the inte-
was still staring at a crevasse between wrong-footed the market. gration has gone exceptionally well be-
its start-up and DeGrussa’s shutdown “It was a big surprise for the market, cause the team there was very receptive
– scheduled for this quarter – so at the there was zero expectation and there to be owned by an engaged company,
beginning of 2020, the company headed was no leakage,” Simich said. “It was a not just a shareholder,” Simich said, ex-
back to the marketplace. surprise in terms of the scale, the speed, plaining that neither of the two previous
“We didn’t want to be an operating the eloquent nature of the funding – the owners were in the business of running
company that went back to being a devel- speed and cleanliness of the debt and mines. “We’re not shareholders, we’re
opment company after DeGrussa closed equity and the fact the capital raising was miners.”
and before Motheo opened,” Simich said. completed in four hours oversubscribed. As well as the immediate opportunity
“It is much easier if you keep operating. The other unique feature was our ability around resources and reserves – a new
So, we spent a lot of time looking hard at to undertake it without shareholder ap- reserve statement is due this month –
our business and developing the strate- proval, which was critical in being com- Sandfire has identified several other ar-
gic plan.” petitive in the bidding process.” eas of refinement.
The outcome of that planning was an In one swift move, Sandfire had its “We were happy with what we thought
aggressive sales pitch which saw it bid bridge over the DeGrussa-Motheo cre- we acquired but we are seeing already
for EMR Capital’s Golden Grove cop- vasse. that there is more,” Simich said. “Opera-
per-zinc mine in WA and the individual Operating since 2009, MATSA pro- tional efficiency, metallurgy, productivity,
50% shares JV partners Trafigura and duces more than 100,000 tpa copper mining practices, dilution; there is lots of
Mubadala Investment Company held in equivalent through a 4.7 mtpa central opportunity.”
the Minas De Aguas Teñidas (MATSA) processing facility. Reserves stand at Not that Simich plans to completely
copper complex in the Huelva province, 36.1mt @ 3.1% copper equivalent for rip up the operating manual which has
south-west Spain. six years of mine life while Sandfire’s served MATSA so well to date.
When EMR chose to list Golden Grove first resource update in July delivered “We will grow into the project as it is
in a dedicated entity, 29Metals Ltd, via an increase to 147mt @ 1.4% copper, already a full-fledged business operat-
a $528 million IPO, Sandfire returned to 3% zinc, 1% lead and 39.6 g/t silver for ing for 18 years,” he said. “There are full
MATSA. 2.1mt, 4.4mt, 1.5mt and 187.6 moz of capable systems and procedures, so
Karl Simich
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 21
coVeR
we’re going in to learn, collaborate and journey so much, it will forget to stop and We have an
optimise. This is not a case of the Aussies contemplate the wider opportunity in Bot- opportunity to
coming in to tell the Spaniards how to do swana? Simich insists the contrary will
things, we’re here to observe initially. occur. leverage off those skills
“I do think though, having been owned “MATSA actually unlocks the oppor- “apabilities and the
and c
by a trading house and with a single in- tunity in Botswana, Montana [where the enhanced balance to the
terest and a passive sovereign wealth company controls the Black Butte copper
fund, optimisation and utilisation wasn’t project] and elsewhere,” he said. “It trans- benefit of Motheo.
a focus of attention. This asset was well forms the company into a first quartile
developed [capex was $US2 billion] and copper producer of global scale and al-
doesn’t want for anything but it needs lows us to leverage our skill set to deliver
proper deep integration and leadership on our growth ambitions to create one of engagement and you develop deeper re-
on the ground. the highest quality and most compelling lationships with global bankers, offtakers
“We think we can improve productivity copper exposures on the ASX. and shareholders. We have an opportu-
10-15% through many areas where we “It has given us greater leverage and nity to leverage off those skills and capa-
pick up 1-2% improvements. That just global appeal and will allow us to better bilities and the enhanced balance to the
wasn’t the objective of the previous own- deliver on those existing assets. It is the benefit of Motheo.”
ers.” combination of assets which makes the That Simich is still talking up Motheo de-
More than just a bridge then, MATSA business even more capable and strong- spite MATSA’ s immediate coronation as
represents a fully paved, eight-lane su- er. As you become bigger, you develop prime operation asset says much of how
perhighway between DeGrussa and your expertise in exploration, mining and the company values its Botswana asset.
Motheo. So, is there a danger that the processing. You become more sophisti-
Sandfire bus will be enjoying the MATSA cated in things like marketing and social Civil works at the Motheo process plant were
more than 60% complete at the time of print
Page 22 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Sandfire acquired the MATSA complex in Spain
last year from Trafigura for $US1.86 billion
Initial production will be less than a Australian company Discovery Metals 2014 amid an increasingly bearish cop-
quarter of what its Spanish stablemate came closest, finding, building and com- per market before Discovery was eventu-
is already producing but the opportunity missioning the Boseto mine further along ally wound up in June 2015.
at Motheo has always been about much the Kalahari belt. The Boseto plant is now back in op-
more than short-term copper tonnes. The failure of Discovery Metals put per- eration, acting as a processing hub for
“Motheo is one of our foundations and haps the biggest dent in Botswana’s rep- Khomecau Copper’s 150,000 tpa cop-
the opportunity for us in Botswana is enor- utation. The company was a leading light per concentrate operation. Khomecau
mous to say the least,” Simich said. “We of the ASX’s African set, building a 36,000 is owned by private investment groups
are talking about a mineral belt, the only tpa copper and 1.1 mozpa silver mine at Global Natural Resources Investments
one in the world, with an accelerating rate Boseto and such was its early success (GNRI) and Resource Capital Fund
of discovery. We have a plethora of tar- that Discovery rejected an $830 million (RCF). Its success and Motheo’s seam-
gets and we are building a project where takeover offer from Chinese firm Ca- less progression have fuelled rumours
we have control of the province. We want thay Fortune in 2012 but the subsequent that GNRI and RCF are preparing to put
to make sure we set up the proposition ramp-up failed to meet expectations with Khomecau on the market, placing the en-
from the beginning. If we had a project recoveries lower than anticipated. Boseto tire Kalahari belt in the sights of several
development clock, it would be showing was placed on care-and-maintenance in corporate hawks.
we are 30 seconds past the hour. Although developments have been
“Those elements mean that given we scant, it offers the kind of opportunity
and reputation as Africa’s most stable “ Motheo has the exploration and a benign investment en-
paid $167 million for it, Motheo has the every copper major is desperate for; belt-
potential to be the greatest value proposi-
scale land positions, a lack of significant
tion in the entire portfolio.”
It is the dominant position on the Kala-
vironment.
potential to be the
Simich knows just how important the
hari belt which gives Simich that confi-
Kalahari belt could be to the future of the
dence.
greatest value proposition
Despite its renowned diamond sector
“It is an area which hasn’t been ex-
plored to any great extent and, until Mod’s
and welcoming mining jurisdiction, Bot- in the entire portfolio. copper industry.
swana has never fulfilled its metals po- involvement, largely without any signifi-
tential despite several false dawns. cant modern technology, application or
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 23
coVeR
Production from MATSA (top) will keep cash
geological theory,” he said. “And we are are also geopolitically unstable, the DRC flow coming into the Sandfire business until
there at the beginning of the evolution of being a prime example. In that scenario, Motheo (bottom) comes onstream
the Kalahari copper belt.” underexplored belts in Tier-1 jurisdictions
The Kalahari belt’s importance to future are likely to become a key focus.
copper supply is unlikely to be blown off- There can be few areas where Spain
course by the red metal’s recent price spi- and Botswana attract strong parallels but operator to intercontinental producer, it
ral. In July, the LME copper price slipped for Simich, their copper potential makes could be assumed Sandfire is settling in
below $US7,00/t for the first time since them near-identical. for a period of consolidation while a glob-
November 2020 but according to a recent “Both Spain and Botswana are Tier-1 al economic crisis takes hold. However,
S&P Global report, the supply shortfall is countries from a mining investment per- having built DeGrussa during the GFC,
set to widen dramatically in the decade spective and MATSA and Motheo are sig- Simich is not perturbed by instability.
ahead. nificant operations on world-class belts “I see the short-term gyrations as a
The study – The Future of Copper: Will which are relatively underexplored,” he buying opportunity in copper,” he said. “In
the Looming Supply Gap Short-circuit explained. “We have the largest footprint 2019, we set out on our five-year strategy,
the Energy Transition? – projected global on both those belts which gives us huge but we have already achieved it within
copper demand to nearly double over the leverage. three years, despite COVID. So, we will
next decade, from 25 mtpa in 2022 to 50 “We are still educating the investment look to revise and enhance that strategy
mtpa by 2035 and 53 mtpa by 2050 as community on both assets and both ju- and there is probably more that we will
the world deployed the technologies criti- risdictions. They are not well understood want to do elsewhere in the world, wheth-
cal to meet net-zero by 2050 goals. because there has been nothing to invest er that is Africa, Europe, North America
However, new supply is scarce. The in. MATSA was held privately, as was or Australia.”
copper development pipeline is dry, Khomecau and so for the first time, the – Dominic Piper
greenfields exploration success has been analysts are looking at Spain and Bot-
almost non-existent in the last decade and swana through Sandfire.”
the most progressive regions geologically Having transformed from single-asset
“ Both Spain and Botswana are Tier-1 countries from a mining investment
perspective and MATSA and Motheo are significant operations on world-class
belts which are relatively underexplored.
Page 24 aUgUST 2022 aUSTRaLIa’S PaYDIRT
“ We will look to revise and enhance that
strategy and there is probably more that we
Sandfire management hosted a site visit for investors will want to do elsewhere in the world, whether that
is Africa, Europe, North America or Australia.
and other stakeholders at Motheo in May
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 25
ADU PReVIeW
Normal programming resumes
for Africa-Australia relations
lobally recognised as the premier
G forum for Africa-Australia business
relations, Africa Down Under (ADU)
returns to Pan Pacific Perth on August
Welcome back, 31 - September 2 with this year’s event 20 of the very best
we’ve missed you shaping as the most important in recent This year marks the 20th anni-
After being locked out of Western memory. Our extensive 68-page preview versary of ADU. Since the humble
beginnings of the inaugural event in
Australia for the past two gatherings to the conference begins with the five key 2003, the world-renowned confer-
due to the COVID-19 pandemic, inter- ence has showcased many success
national and interstate delegates will reasons for delegates to attend in 2022 stories about Australian explorers
be physically present on the confer- and miners operating alongside lo-
ence floor for the first time in three years and the African continent and potentially strike up cal suppliers, contractors and communities
especially eager to make new connections new deals and arrangements for the years across all parts of Africa.
or, in some cases, renewing acquaintances to come. Over the past 20 years, ADU has attracted
with old friends and business partners. Among the regular faces returning to some of the biggest names in the business
Expect every corner of the exhibition floor Perth following a two-year hiatus are Bris- including recently retired Gold Fields Ltd
to be occupied, meeting rooms to be fully bane-based explorers Mako Gold Ltd and chief executive Nick Holland, revered Afri-
booked and even the couches in the down- Atlantic Lithium Ltd, South African pair Orion can business leaders Kojo Annan and Shei-
stairs hotel lobby taken up by mining execu- Minerals Ltd and West Wits Mining Ltd and la Khama, and former Nigerian President
tives, investors, government officials and vis- AIM-listed Ethiopian developer Kefi Gold Olusegun Obasanjo. Even Ghanaian boxing
iting delegations looking to hold face-to-face and Copper plc, all of whom participated vir- great Azumah Nelson made an appearance
discussions over the latest opportunities on tually in 2020 and 2021. in 2014 to promote his autobiography and
Page 26 aUgUST 2022 aUSTRaLIa’S PaYDIRT
restrictions around the world continue to be
lifted. 1 - 2 September 2021
2022 will also see the physical return of Perth, Western Australia
the Australian Ambassadors and African
Heads of Mission who have become corner-
stone members of the ADU fraternity over
the years. Expect the Ministerial Lounge to
once again be a busy meeting place for Aus-
tralian-based mining executives looking to
welcome visiting delegations into their own
backyard.
Of course, the prestigious Ministerial Din- For more information on Africa
ner at Frasers Restaurant, Kings Park is also Down Under, including sponsorship
back on the agenda, providing VIP guests a opportunities, contact Paydirt
special opportunity to enjoy an evening of Media on +61 8 9321 0355 or visit
fine Australian food and wine. africadownunderconference.com.au
recount his famous victory over Australia’s The world game And the winner is…
Jeff Fenech.
ADU remains a must-attend event for any It might not be the actual FIFA World Cup One of the recent additions to the ADU
company with projects on the continent and which kicks off in Qatar in November, but programme has been the popular Aus-
for those thinking about investing or doing rivalries are certainly put on the line with tralia-Africa Minerals and Energy Group
business in Africa. ADU’s own version of the famous round ball (AAMEG) Awards, celebrating the Austral-
In addition to creating a melting pot for pro contest. ian explorers, miners and service providers
Africa-Australia relations, ADU has been the Run by Football West and supported by a that champion a transparent, equitable and
principal pillar of “Africa Week”, Australia’s number of key sponsors and exhibitors from mutually beneficial mineral resources indus-
week-long celebration of the strong and the conference, the ADU Cup has become a try in Africa.
growing business, social and cultural ties be- regular fixture at Langley Park on the Thurs- Three key awards are presented for the
tween Australia and the entire African conti- day afternoon, with teams from local African Best Innovation in Corporate Social Devel-
nent, culminating in the annual Organisation communities proudly kitting up for sporting opment, Best Workforce and Industry De-
of African Communities in Western Australia glory. velopment Initiative and the Emerging ESG
(OACWA) Awards Gala Night. Companies sponsoring the round-robin Leader, sponsored by the Minerals Council
tournament have their logos emblazoned of Australia.
across team jerseys, with a bag of 10 foot- Other notable side events which will take
balls donated to a community children’s pro- place on the sidelines of the conference in-
gramme in attendance. clude the Australia-Africa Research Forum
Food trucks, musical entertainment and (AARF), the Ghana investment lunch and
other festival-style activities also ensure the African Mining Professionals Associa-
there is something for everyone. tion of Australia (AMPAA) networking event.
Yes Minister
ADU has welcomed numerous senior Af-
rican mining officials to the main stage over
the years and 2022 will be no different.
As this edition went to print, mines min-
isters from Gabon, Ghana, Nigeria and
Zimbabwe were confirmed to be attending,
and that list is only expected to grow as the
conference approaches and various travel
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 27
BOOK NOW!
31 Aug - 2 Sept 2022
Perth, Western Australia
Australia’s premier Africa-Australia business forum
Sponsors and supporters to date:
For details about exhibiting, presenting and participating
call Christine Oelschlaeger on +61 (0)8 9321 0355
[email protected]
For details about exhibiting, presenting and participating
call Angelique Julien on +61 (0)8 9321 0355 [email protected]
africadownunderconference.com
www.africadownunderconference.com
africadownunderconference.com
20 Reasons
BOOK NOW!
to Attend ADU 2022
1 Biggest and best conference 11 Exclusive networking
outside Africa
opportunities
2 THE premier Africa-Australia 12 Insights into breaking deals
and investment prospects
business forum
Australia’s premier Africa-Australia business forum 1500+ delegates from over Vibrant exhibition featuring
3 60 countries 13 the latest innovations
4 20 years of success 14 Expert geopolitical and
market analysis
5 Unrivalled access to African 15 Engaging panel sessions and
ministers
discussions
6 Endorsement and participation 16 Cornerstone of Australia’s
by Australian federal and state
“Africa Week”
governments
17 Satellite Events – research;
7 High profile speakers and infrastructure; education; training
attendees
18 High profile branding
opportunities
8 Presentations that make you think
9 Dedicated investor lounge with 19 Comprehensive Australian and
international media coverage
For details about exhibiting, presenting and participating one-on-one matchmaking
call Christine Oelschlaeger on +61 (0)8 9321 0355
[email protected] 10 Access to key decision makers 20 ADU – a forum and
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africadownunderconference.com
www.africadownunderconference.com To present, exhibit or attend as a delegate please contact Angelique Julien
africadownunderconference.com
on (+61) 8 9321 0355 or [email protected]
ADU PReVIeW
Firefinch is facing production
and cost issues at its Morila
operation in Mali
Firefinch
under fire
irefinch Ltd’s growth plans hang by a dress this with management changes, cost cost effectively as planned,” he told the
Fthread after the company lost its man- cutting, a pivot in the mining strategy and market. “Morila is a world-class gold de-
aging director and two newly appointed di- the acceleration of a new mine plan to in- posit with extensive operational infrastruc-
rectors following a major production down- form the way ahead.” ture which has produced over 7.5 moz of
grade from its Morila gold mine in Mali. The underwhelming production figures gold and has a current resource of 2.5
The company caught the market by sur- for the June quarter came after the com- moz. This asset, together with our stake in
prise on June 27 when it requested a trad- pany posted 10,874oz in the March quarter Leo Lithium [Ltd], provides a solid under-
ing halt “in relation to an update regarding and 1,115oz in the December period, both pinning to the company.”
operational performance and production within guidance. The stake in Leo Lithium – spun out of
guidance” for Morila. A day later, newly ap- Speaking to Paydirt in May, Anderson the gold miner in June – was reduced on
pointed directors Liz Wall and Naomi Scott said the company was well aware of the July 5 when Firefinch sold 28.6m shares
stepped down and on June 29, manag- challenges of ramping up at Morila. at 45.5c/share to raise $12.9 million. The
ing director Michael Anderson departed “We are taking material movement tak- remaining 210.9 million shares it holds in
with only a single sentence from chairman ing that movement on a path from closure Leo are subject to escrow until June 2024.
Alistair Cowden thanking him for his ef- to going back up to 25 mtpa, including 4 The share price had already taken a hit
forts. mtpa of ore,” he said. “That’s a steep ramp as a consequence of the Leo spin-out,
By July 4, Cowden was announcing June up we’re meeting and doing it safely is the dropping from a high of $1.22 in early
quarter production of 13,300oz had fallen challenge. The intensity of that creates risk April to 20c at the time the trading halt was
short of the 17-20,000oz forecast due to in itself. called.
operational underperformance. It was “The June quarter is when we will start Redemption may come from a mix of the
Cowden’s last announcement as chairman to access the Morila ore and we are on the shovel and drill bit. The July 4 announce-
as he resigned from the position on July 11 brink of a significant ramp up in tonnes and ment included details about a change in
with the company still in suspension. ounces which we need if we are to hit our plans which will see mining in the N’Tiola
That underperformance was blamed on forecast 90,000oz for the calendar year.” satellite pit stopped with the mining fleet
poor equipment availability, itself a result It is now clear those levels were not being relocated to the Viper pit and the
of sanctions imposed on Mali by the Eco- reached, with contractor problems ac- existing equipment at Viper moved to the
nomic Community of West African States centuating the difficulties in getting equip- Morila Super Pit to ensure a single contrac-
(ECOWAS), restricting the movement of ment into a country which has been heavily tor at each site.
goods such as mining equipment and con- sanctioned as a result of a second blood- Firefinch is now targeting 8,000-9,000oz
sumables. less coup in the space of two years in May gold production a month and has post-
Financial performance was also ham- 2021. poned exploration and tailings construction
pered by the inflation being experienced Prior to his resignation, Cowden was projects to conserve cash.
throughout the mining sector and perfor- confident the former Barrick Gold Corp It said a new near-term production
mance of the Australian dollar. mine – picked up for just $26 million in plan would be released in the September
“A confluence of events, including cost 2020 – can deliver on Firefinch’s goal of quarter, as would an updated resource
inflation, ECOWAS sanctions and contrac- 200,000 ozpa production. and reserve statement, largely based on Alternatively, to present, exhibit or attend as a delegate
tor performance has resulted in underper- “I also want to make clear that the ore- 40,000m of drilling undertaken in 2022.
formance at Morila,” Cowden said on July body has not underperformed, rather pro- – Paydirt staff with Reuters please contact Angelique Julien directly
4. “The board has acted decisively to ad- duction has not ramped up as fast and as
on (+61) 8 9321 0355 or [email protected]
Page 30 aUgUST 2022 aUSTRaLIa’S PaYDIRT
31 Aug - 2 Sept 2022
Perth, Western Australia
1 - Scan
2 - Register
3 - Enjoy ADU22
Alternatively, to present, exhibit or attend as a delegate
please contact Angelique Julien directly
on (+61) 8 9321 0355 or [email protected]
ADU PReVIeW
Roaring start for Leo Lithium
ewly-listed developer Leo Lithium Ltd Goulamina is being developed in partner- the converter is built.”
Nreceived the best possible news after fi- ship with leading Chinese producer Jiangxi Leo recently appointed Joe Belladonna,
nally hitting the boards in late June, with West Ganfeng Lithium Co Ltd. Leo is fully funded formerly of nickel market darling Western Ar-
African bloc ECOWAS lifting economic and for the Stage 1 construction having also re- eas, as chief financial officer, Tom Blackwell
financial sanctions against Mali’s military gov- cently finalised a $US40 million debt facility as project director, Marc Rowley as general
ernment. with its 50:50 JV partner. manager development and Bolaji Okubajo as
The sanctions were imposed on the The Goulamina JV now boasts a debt and project manager, based in Mali. The company
country in January after military leaders an- equity package of $US170 million to build is also looking to add a chief operating officer
nounced democratic elections would be de- what will be West Africa’s first hard rock lith- and general manager technical services to its
layed until 2026, with Mali effectively prohib- ium mine. management team before the end of the year.
ited from trading any goods except for food, “Ganfeng brings so much to the table,” Hay Hay expects the company will create about
fuel and medicine. said. “They’re great to work with, their local 1,200 jobs during the construction phase,
team are very knowledgeable predominantly all from the local region around
in the lithium industry, they’ve Goulamina. To date, about 60 unskilled work-
added a lot of value to the ers have been employed from the surround-
flowsheet, they give us a lot ing hosted communities in a further boost for
of their thoughts on how we both the resources sector and general econ-
should process the material. omy in Mali.
They’ve now moved to 100% “The Government is very keen to diversify
offtake for Stage 1 with the away from just gold, they have a well-estab-
provision of this $US40 mil- lished and mature gold industry as we all
lion debt facility that we’ve just know, but this is another string to add to their
completed.” bow in the mining industry,” Hay said.
Leo reports all development “Of course, it will be a great revenue spin-
works at Goulamina are pro- ner for the country and for the Government in
gressing in line with schedule terms of the taxes and royalties that we will
and budget. Key activities cur- pay, but the economic benefits are also sig-
rently under way include the nificant. We’ll have about 1,200 employees in
installation of the drillers and the construction phase and around half that in
pioneer camp and the up- the operational phase. We will certainly look
Drilling continues at Goulamina with a new resource and
reserve update expected over the coming months grade of the site access road. to train and employ locals; we see that as fan-
Detailed plant design re- tastic for the country.
mains ongoing while long- “For Leo Lithium, this asset is so good. It’s
ECOWAS last month agreed to immediate- lead items such as ball mill,
ly lift the sanctions following the Malian Gov- jaw and cone crushers are
ernment’s commitment to holding elections in being procured with the assis-
February 2024. tance of Ganfeng.
Speaking on Paydirt TV last month, Leo Hay said his company was
managing director Simon Hay welcomed the also starting to see the bene-
proposed return to democratic rule in Mali, fits of Ganfeng’s procurement
especially with the company ramping up network in China.
construction works at its Goulamina lithium “We’ve got a number of our
project. tender packages going out to
“I have to point out that the sanctions have suppliers in China, and with
not had an impact on the project at all, but Ganfeng’s assistance, these
the lifting of the sanctions enables us to get are coming back very com-
equipment into site when we need to using petitively in terms of price,
our preferred transport routes, so it will make but also in terms of timeframe
things a lot easier in the future,” Hay said. and schedule, which is super
“Also, I think it’s just great for the economy important for this project,” he
in Mali. It should ease constraints on getting said. Leo managing director Simon Hay (left) and Mali Minister of
equipment into the country in general and “Ganfeng have also just Mines HE Lamine Traore at the official opening ceremony for
the Government itself [being] free and able to started building their dedicat- the Goulamina site works
communicate with other sectors.” ed converter which will take
Leo debuted on the ASX via an oversub- Goulamina spodumene concentrate and such a large-scale high-grade spodumene
scribed $100 million IPO on June 23, al- process that through to battery-grade lithium deposit, we expect it will generate fantastic
most 12 months to the day after gold miner hydroxide. This converter has been acceler- financial returns over its life of mine. This is
Firefinch Ltd made the decision to spin-out ated, it’s been brought forward six months, so a company-making asset. It’s the start of Leo
Goulamina – one of the world’s largest un- it provides our project team a real target; if we Lithium, we’re really in a great spot right at the
developed hard rock lithium projects – into a can bring our project on early, the spodumene moment.”
separately listed vehicle. concentrate will have a home in China when
– Michael Washbourne
Page 32 aUgUST 2022 aUSTRaLIa’S PaYDIRT
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aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 33
AMIS A4 Triple ISO Accredited Ad FINAL.indd 1 2022/07/01 09:15
“Capital is one of the most
professional companies in this
business. They are doing a
great job of looking after their
employees and educating
them, giving benefits to locals
working in Egypt. They are
Building Value for Local Communities developing Africa and Africans
in the best interests of the
mining industry in this part of
Capital Limited (Capital) commenced drilling in Tanzania, in 2005. While the Ambassador Ami Ramadhan Mpungwe Khaled Mortagy chairs Capital’s Egyptian the world.”
chairs Capital’s Tanzanian subsidiary CMS subsidiary Capital Drilling (Egypt) Ltd
company has expanded across Africa since then, it continues to place the highest (Tanzania) Limited and its JV Training Khaled Mortagy
Academy, IACA
priority on the development and eduction of its National employees and ensuring its
operations contribute to the local communities where it operates.
PROFILE well as the Certificate of Recognition business which he sold to Compass
AFRICAN PERSPECTIVE
Providing employment opportunities, education and career by the Organisation of African Unity Group PLC, the largest foodservice
development pathways for local employees ensures AMBASSADOR AMI (OAU) for his “Important Contribution company in the world. He continued to
Capital ensures that it involves highly respected African RAMADHAN MPUNGWE
that sustained value can be delivered throughout local in facilitating the Inter-Rwandese work as MENA Manager for Compass,
business professionals within its organisation to provide
communities and economies. negotiations, culminating in the Arusha honing his corporate expertise and
advice and input on its operations, policies and procedures to Chairman of CMS (Tanzania) Limited
The company employs a range of initiatives to do this, provide the best outcomes for the local communities. and IACA Training Academy Peace Agreement of 4th August 1993” skills and continuing his success by
expanding their market share in Egypt
including its National Labour Development plan, incorporating After 25 years of distinguished
The company’s Tanzanian subsidiary, CMS (Tanzania) Limited Ambassador Mpungwe is the from 2% to nearly 60% and revenue
a ‘Manager as Coach’ program to develop suitable skills service, Ambassador Mpungwe took
is chaired by retired diplomat, Ambassador Ami Ramadhan Chairperson of Capital’s Tanzanian from £3.3 million to £500 million.
and qualifications to enable locals to replace expatriate a voluntary retirement to join the
Mpungwe, who also has extensive business interests across subsidiary, CMS (Tanzania) Limited,
employees across its operations. Private Sector where he has been Khaled is also a strong supporter of
a range of industries. a Joint Venture with local company
As a result of these programs, 89% of Capital’s employees CK Washirika. He is also Chairperson involved in a range of industries the professional Egyptian football
Additionally, the Egyptian subsidiary, Capital Drilling (Egypt)
are from local areas where it works, with up to 92% in its for Capital’s Joint Venture training including telecommunications, digital leagues and is a high-profile Board
Ltd, is chaired by Khaled Mortagy, a highly successful
Middle East North Africa (MENA) operations. academy, International Apprenticeship entertainment, freight, beverages, member and Treasurer of the Al Ahly
entrepreneur in the region. sugar, sustainable forestry, mining, Soccer Club. The club is one of the
and Competency Academy (IACA)
ESTABLISHING INTERNATIONALLY Ambassador Mpungwe and Khaled Mortagy which provides technical trades energy and banking. He has also held oldest in the Egyptian Premier League
ACCREDITED TRAINING FACILITIES training and internationally recognised Chairperson roles for the Tanzanian and the most successful Egyptian
provide invaluable direction and perspective qualifications for Tanzanians. Chamber of Mines, University of team in international competition
While Capital offers internal employment opportunities, it Dodoma Endowment Fund and today.
to ensure Capital realises its objectives
has expanded its commitment to developing local skills Ambassador Mpungwe is a highly been involved on the Council of the
of adding sustainable value to local He also undertakes a variety of
in mining and other industries through formalising a joint accomplished career diplomat University of Dar es Salaam.
communities who became Tanzania’s First High philanthropic work with local
venture partnership with International Apprenticeship and
Competency Academy (IACA) in Tanzania to provide technical Commissioner to South Africa in communities, and regularly provides
trades training and qualifications for Tanzanians. 1994. Prior to that, he held several PROFILE meals for those in need on the streets
high-profile diplomatic roles including of Cairo.
The Academy will offer apprenticeship programs and KHALED MORTAGY
Personal Assistant to the President As reflected by these contributions
accreditation for Levels 1-3 Technical Trades qualifications at
of the United Republic of Tanzania; Chairman of Capital Drilling (Egypt) to Egyptian society, Khaled is firmly
its network of technical training centres,
Private Secretary to the Chief aligned to Capital’s philosophy
Ltd
Courses offered by IACA will be accredited by the Secretary, Secretary to the Cabinet of working to benefit the local
Khaled Mortagy is Chairperson of
Engineering, Construction, Industry Training Board (ECITB) and Head of the Civil Service, and communities in Egypt through
Capital’s Egyptian subsidiary Capital
UK under its partnership with Safety Works. For the first Director of Africa and Middle East in employment and education. He
Drilling (Egypt) Ltd. He has been
time in the country, this will provide graduates with an the Ministry of Foreign Affairs of the also values the company’s efforts
involved with Capital Egypt since
internationally recognised trade skill and international United Republic of Tanzania. in working closely with Government
its inception in 2005, assisting the
standard competency levels. authorities to grow the mining sector
His diplomatic contributions have company establish its operations in
Courses will also be accredited by the Tanzanian regulator, been recognised with the award of the the country and continuing to leverage and attract investors to the country.
namely National Council for Technical Education (NACTE) and ‘Order of Good Hope’, South Africa’s his expertise and profile to support its
Vocational Education Training Authority (VETA). Importantly, highest Award granted to foreign ongoing business development. [email protected]
these centres will also offer skills assessment of the prior citizens for his service in liberating
learnings of thousands of existing Tanzanian trades people. South Africa and promoting closer ties Khaled is a highly successful www.capdrill.com
between Tanzania and South Africa, as entrepreneur. He founded a catering
“Capital is one of the most
professional companies in this
business. They are doing a
great job of looking after their
employees and educating
them, giving benefits to locals
working in Egypt. They are
Building Value for Local Communities developing Africa and Africans
in the best interests of the
mining industry in this part of
Capital Limited (Capital) commenced drilling in Tanzania, in 2005. While the Ambassador Ami Ramadhan Mpungwe Khaled Mortagy chairs Capital’s Egyptian the world.”
chairs Capital’s Tanzanian subsidiary CMS subsidiary Capital Drilling (Egypt) Ltd
company has expanded across Africa since then, it continues to place the highest (Tanzania) Limited and its JV Training Khaled Mortagy
Academy, IACA
priority on the development and eduction of its National employees and ensuring its
operations contribute to the local communities where it operates.
PROFILE well as the Certificate of Recognition business which he sold to Compass
AFRICAN PERSPECTIVE
Providing employment opportunities, education and career by the Organisation of African Unity Group PLC, the largest foodservice
development pathways for local employees ensures AMBASSADOR AMI (OAU) for his “Important Contribution company in the world. He continued to
Capital ensures that it involves highly respected African RAMADHAN MPUNGWE
that sustained value can be delivered throughout local in facilitating the Inter-Rwandese work as MENA Manager for Compass,
business professionals within its organisation to provide
communities and economies. negotiations, culminating in the Arusha honing his corporate expertise and
advice and input on its operations, policies and procedures to Chairman of CMS (Tanzania) Limited
The company employs a range of initiatives to do this, provide the best outcomes for the local communities. and IACA Training Academy Peace Agreement of 4th August 1993” skills and continuing his success by
expanding their market share in Egypt
including its National Labour Development plan, incorporating After 25 years of distinguished
The company’s Tanzanian subsidiary, CMS (Tanzania) Limited Ambassador Mpungwe is the from 2% to nearly 60% and revenue
a ‘Manager as Coach’ program to develop suitable skills service, Ambassador Mpungwe took
is chaired by retired diplomat, Ambassador Ami Ramadhan Chairperson of Capital’s Tanzanian from £3.3 million to £500 million.
and qualifications to enable locals to replace expatriate a voluntary retirement to join the
Mpungwe, who also has extensive business interests across subsidiary, CMS (Tanzania) Limited,
employees across its operations. Private Sector where he has been Khaled is also a strong supporter of
a range of industries. a Joint Venture with local company
As a result of these programs, 89% of Capital’s employees CK Washirika. He is also Chairperson involved in a range of industries the professional Egyptian football
Additionally, the Egyptian subsidiary, Capital Drilling (Egypt)
are from local areas where it works, with up to 92% in its for Capital’s Joint Venture training including telecommunications, digital leagues and is a high-profile Board
Ltd, is chaired by Khaled Mortagy, a highly successful
Middle East North Africa (MENA) operations. academy, International Apprenticeship entertainment, freight, beverages, member and Treasurer of the Al Ahly
entrepreneur in the region. sugar, sustainable forestry, mining, Soccer Club. The club is one of the
and Competency Academy (IACA)
ESTABLISHING INTERNATIONALLY Ambassador Mpungwe and Khaled Mortagy which provides technical trades energy and banking. He has also held oldest in the Egyptian Premier League
ACCREDITED TRAINING FACILITIES training and internationally recognised Chairperson roles for the Tanzanian and the most successful Egyptian
provide invaluable direction and perspective qualifications for Tanzanians. Chamber of Mines, University of team in international competition
While Capital offers internal employment opportunities, it Dodoma Endowment Fund and today.
to ensure Capital realises its objectives
has expanded its commitment to developing local skills Ambassador Mpungwe is a highly been involved on the Council of the
of adding sustainable value to local He also undertakes a variety of
in mining and other industries through formalising a joint accomplished career diplomat University of Dar es Salaam.
communities who became Tanzania’s First High philanthropic work with local
venture partnership with International Apprenticeship and
Competency Academy (IACA) in Tanzania to provide technical Commissioner to South Africa in communities, and regularly provides
trades training and qualifications for Tanzanians. 1994. Prior to that, he held several PROFILE meals for those in need on the streets
high-profile diplomatic roles including of Cairo.
The Academy will offer apprenticeship programs and KHALED MORTAGY
Personal Assistant to the President As reflected by these contributions
accreditation for Levels 1-3 Technical Trades qualifications at
of the United Republic of Tanzania; Chairman of Capital Drilling (Egypt) to Egyptian society, Khaled is firmly
its network of technical training centres,
Private Secretary to the Chief aligned to Capital’s philosophy
Ltd
Courses offered by IACA will be accredited by the Secretary, Secretary to the Cabinet of working to benefit the local
Khaled Mortagy is Chairperson of
Engineering, Construction, Industry Training Board (ECITB) and Head of the Civil Service, and communities in Egypt through
Capital’s Egyptian subsidiary Capital
UK under its partnership with Safety Works. For the first Director of Africa and Middle East in employment and education. He
Drilling (Egypt) Ltd. He has been
time in the country, this will provide graduates with an the Ministry of Foreign Affairs of the also values the company’s efforts
involved with Capital Egypt since
internationally recognised trade skill and international United Republic of Tanzania. in working closely with Government
its inception in 2005, assisting the
standard competency levels. authorities to grow the mining sector
His diplomatic contributions have company establish its operations in
Courses will also be accredited by the Tanzanian regulator, been recognised with the award of the the country and continuing to leverage and attract investors to the country.
namely National Council for Technical Education (NACTE) and ‘Order of Good Hope’, South Africa’s his expertise and profile to support its
Vocational Education Training Authority (VETA). Importantly, highest Award granted to foreign ongoing business development. [email protected]
these centres will also offer skills assessment of the prior citizens for his service in liberating
learnings of thousands of existing Tanzanian trades people. South Africa and promoting closer ties Khaled is a highly successful www.capdrill.com
between Tanzania and South Africa, as entrepreneur. He founded a catering
ADU PReVIeW
Makuutu close to becoming
Uganda’s first mine
quity markets may be proving heavy go- “The product from Makutuu is the big grinding and flotation.
Eing for resource developers, but the de- one they are all interested in,” Harrison The intricacies are more pronounced at
velopment course remains good for those said. “The magnet rare earths coming on- the refining stage with hard rock rare earth
companies building projects in key critical line is a story about more than just NdPr concentrates requiring capital-intensive,
minerals. [neodymium and praseodymium]. The wind high-temperature mineral cracking plants,
Ionic Rare Earths Ltd is a prime exam- turbine and EV manufacturers know where while the clay-hosted deposits produce a
ple of a junior finding a disconnect between they can source NdPr, now they are trying mixed rare earth carbonate concentrate
day-to-day market movements and the to better understand where the dysprosium from which extraction is relatively simple.
conversations it is having with end-users. and terbium is coming from because histor- “There is a complexity in the hard rock
The Ionic share price has drifted from a ically those products have come from the space around large hydrometallurgical
high of 8.8c in April to just 3.6c in late June. ionic adsorption clays, 95-98% of which are plants, cracking and the capital required,”
However, when it comes to offtake and fi- in China and Myanmar.” Harrison said. “Lynas has taken time but is
nancing discussions, there is only one in- With China expected to consume all ionic now producing a lot of NdPr but only has
struction coming at Ionic managing director adsorption rare earths production internally a small component of medium and heavy
Tim Harrison. by 2026, the race is on to get alternative rare earths. So, the search is on to find pro-
“Go harder, go faster; that’s the message sources such as Makuutu into develop- jects that can be brought online quickly. Ion-
we are getting from key strategic partners, ment. ic adsorption clays are the focus because
customers and end-users,” Harrison told “We are working with groups on what China has achieved its balance of heavy
Paydirt. “They are all asking how quickly can be brought online and marrying up with rare earths production through them.”
this can be brought on, how we can expe- their demand,” Harrison said. “There is not If it is achievable in theory, Ionic’s job
dite it. There is a lot of interest in the prod- really the supply of dysprosium and terbium is to complete it in practice by developing
uct, from the US, the EU, specific European to satisfy demand from both wind turbines Makuutu.
member states, Japan, India, UK. They are and the EV market, so the challenge for The project – 120km east of the Ugan-
interested across every aspect of the busi- manufacturers is finding the right people dan capital of Kampala – is already well ad-
ness. We don’t have to chase people to with the right projects to facilitate new pro- vanced. An updated resource released in
consider our story.” duction.” May placed the global resource at Makuutu
Ionic plans to meet this demand on three That process needs to occur with alac- at 532mt @ 640 ppm total rare earths oxide
fronts. In the last 18 months it has devel- rity, providing Ionic with another advantage (TREO) with 76% in the indicated category.
oped a rare earths downstream process- over hard rock peers. A scoping study released in April 2021
ing plan and acquired a magnet recycling The clay-hosted deposits are generally showed a NPV of $US321 million with an
business, but at the heart of the customer soft, meaning simple mining with no blast- IRR of 38%, based on a capex of $US89
enthusiasm is the company’s Makuutu rare ing and straightforward processing with million.
earths project in Uganda. Rare earths pro- no milling. In contrast, hard rock projects The new resource has been plugged into
jects have shot to prominence in the last require drill-and-blast and highly selec- the feasibility study, which is due for release
decade for the application in renewable tive mining techniques and a complicated in the September quarter. If that proves
infrastructure and EVs, particularly when flowsheet involving intensive crushing, positive, Harrison expects to lodge a mining
used in magnets. Major economies such
as Japan, Korea, the US, EU and UK are
trying to extricate themselves from a supply
chain which is dominated by China.
Several Western companies have be-
gun to disrupt that dominance via hard
rock sources – with ASX-listed Lynas Rare
Earths Ltd the most accomplished – but
these projects produce largely light rare
earths such as neodymium and praseo-
dymium. To date, there have been few eco-
nomic discoveries of in-demand medium
and heavy rare earths such as dysprosium,
yttrium and terbium.
Makuutu could represent a solution. Un-
like the hard rock nature of many Western
rare earths projects, Makuutu is an ionic
adsorption clay-hosted deposit with elevat-
ed heavy rare earth content, making it po-
tentially a major source of alternative supply
for these critical minerals.
Some 76% of Makuutu’s 532mt @ 640 ppm TREO resource sits in the indicated category
Page 36 aUgUST 2022 aUSTRaLIa’S PaYDIRT
Ionic is preparing a feasibility
study for Makuutu, due for
release this quarter
licence application immediately afterwards. A positive experience will necessarily remaining 40%. Harrison said the question
“The plan is to have the feasibility study include a lasting environmental and social of ownership would be resolved ahead of
completed in October with mining licence legacy, a fact Harrison is well aware of. financing.
application and get that out as soon as pos- “Like everyone in the minerals space, a Financing discussions may also incor-
sible,” he said. “Engineering is progressing solid ESG framework it is an absolute im- porate Ionic’s downstream ambitions. A
well, although we have had delays with the perative for Ionic,” he said. “We are work- scoping study is being undertaken on refin-
metallurgy caused by challenges with pro- ing hard to ensure the development is ing options for Makuutu with a decision to
fessional resources in Western Australia. If undertaken with high levels of community proceed expected later this year.
we meet that timeline, we will likely make a engagement and social responsibility. We “We have received a lot of interest in
final investment decision in Q2 2023 after have focused on the carbon footprint re- the project and where we place it,” Har-
approval of the mining licence in Q1.” duction through the use of hydro power rison said. “We will assess those options
The approvals process looms as the and have engaged Minviro to start a life- although it is too early to say whether we
critical path for Makuutu given it represents cycle analysis of the project. Rehabilita- release the scoping study or take more time
Uganda’s first ever commercial scale min- tion will consider longer term employment to release it with the location study that we
ing development. Despite the immaturity of programmes and we have established an are conducting in parallel.”
the country’s industry, Harrison is confident advisory committee to coordinate commu- The third element of Ionic’s rare earths
in the process. nity development investment priorities with strategy is a magnet recycling arm, devel-
“At the moment we are working through a key focus being health and education.” oped through its acquisition of Seren Tech-
committee meetings and hearings on the The project’s ESG credentials will be nologies Ltd in December last year.
EIS and while there have been delays in critical to securing funding for the project. The Seren technology gives Ionic access
Uganda, it will likely be completed by the “The way we will mine and rehab this to technology with an ability to chemically
end of August,” he said. “We are working project will make it a unique proposition for separate the magnet material and refine
closely with the community on land access the investment community,” Harrison said. it back to pure rare earths oxides. Previ-
and are engaged with local and national “The opportunity to invest in a high-ESG ous pilot plant studies have proven the
government on all issues. We are confident manner is a big attraction.” flowsheet with Ionic now testing material
of having an operating asset by 2024.” With the widespread interest in Makuutu, at an optimised pilot plant facility in Belfast,
If successful, Makuutu would become Ionic is keeping its options open – and its Northern Ireland.
a model for Uganda’s development plans preferences close to its chest – before an- Harrison said the magnet space was ripe
which has led to strong government back- nouncing any details on project financing. for recycling opportunities.
ing. “We are certainly looking at what we “We are looking at sourcing magnets
“There is a positive groundswell to dem- need to do to finance the project but it is and working with current supply chains to
onstrate that Uganda is open for business,” too early to commit to anything publicly,” put recycled rare earths back into the sup-
Harrison said. “We have very good support Harrison said. “We are assessing options, ply chains in the UK, EU and other jurisdic-
from the Ministry for Energy and Minerals engaging with banks and other key inputs. tions,” he said. “China has a monopoly on
for this project and have recently hosted There are a lot of options because it is rela- magnet recycling and our investigations
the Deputy Prime Minister, the Minister for tively low capex versus other rare earths have found a tremendous amount of mate-
Energy and Minerals and the office of the projects which opens the door to so many rial globally finds its way back into Chinese
President. different players.” supply. We see opportunity to work with the
“The country is underexplored, and the Funding discussions will also involve ad- Western supply chain partners to develop
Government wants international investors dressing the current ownership structure. domestic recycling capacity for local supply
to come in and develop the mineral wealth Ionic currently holds 51% of Makuutu and chains.”
of the country. A positive experience with will earn 60% on completion of the feasibil- – Dominic Piper
Makutuu will be very positive for Uganda.” ity study with a pre-emptive option over the
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 37
ADU PReVIeW oPInIon
Building the infrastructure economic agency of Africans in Australia.
A number of new Africa-focused initiatives
have been developed in Australian universi-
for sustainable engagement ties, including the Africa Research & Engage-
ment Centre (AfREC) at the University of
Western Australia, the Africa Research Group
at Murdoch University, the Centre for Afri-
s Australia adequately prepared to build deep- again be critical to success. But such support can Research, Engagement & Partnerships
I er and more sustainable relationships with the will likely need to be based on a demonstrated (CARE-P) at the University of Newcastle, and
diverse African continent, its countries and its long-term commitment to meaningful engage- the African Research & Engagement in Aus-
peoples over the long-term? ment and reciprocal benefits, not episodic tralia (AREiA) initiative at the University of Mel-
Until now, Australia’s engagement with Af- transactions. bourne. Curtin University is also developing a
rica has been mostly episodic rather than stra- In addition to the participation by Deputy new Global Africa initiative and Curtin Mauri-
tegic, according to a recent book on the history Prime Minister Richard Marles and Minister for tius is the only Australian university campus
of Australia-Africa relations by Nikola Pijovic. International Development and the Pacific Pat based in Africa.
Given the global importance of Africa and Conroy at the June CHOGM in Rwanda, the The third dimension is national infrastruc-
a growing African diaspora in Australia, such appointment of Tim Watts as the new Assis- ture. Given the proliferation of key initiatives
an approach appears counter-productive and tant Minister for Foreign Affairs is a good sign. and programmes outlined above, what is
unsustainable. Mr Watts’ address to the recent Africa Day missing in Australia is a central coordination
Consider Australia’s largely successful celebration in Canberra indicated that the new mechanism linking these initiatives in a more
broad and deep strategic engagement with government is keen to ‘reinvigorate’ its relation- structured way both to each other and to gov-
East and South-East Asia over the last four ships with the continent. ernment.
decades – now deeply enmeshed with many The upcoming annual national “Africa In a recent report, we recommended the
countries to its north through trade and invest- Week” in Perth, anchored by Africa Down urgent establishment of an Australia-Africa
ment, regional organisations, education, tour- Under, will be another important high-level Council, drawing on a similar but ultimately un-
ism, migration and beyond. opportunity to recharge Australia-Africa rela- supported recommendation made by a parlia-
Might Australia now start looking West to- tionships and demonstrate the commitment of mentary committee over a decade ago.
wards Africa in similar ways? Is Australia con- Australia’s political leadership. In our model, such a Council would bring to-
sidering its place in the ‘African Century’? How The second dimension is knowledge, or gether government and three clusters of Aus-
can Australian and African leaders collaborate what we might call ‘Australia-Africa literacy’. tralia-Africa activity; the higher education and
to tackle critical global challenges? What is the state of our national knowledge research sector, the industry and commercial
There are three key dimensions that need about the African continent and African-back- sector, and the diaspora and community sec-
to be considered for deepening such engage- ground peoples in Australia? How much is tor.
ment; political leadership, knowledge, and known about Australia across Africa? Among the benefits would be enhanced
infrastructure. I discuss each below in turn, I would suggest that knowledge both ways national coordination, stronger bases for in-
providing examples of what is currently be- is limited and often relies on unhelpful ste- formed national policy development, height-
ing done and concluding with what Australia reotypes of the other, including those in the ened national visibility, and more efficient use
needs if it is to develop longer-term strategic commercial media, which, in the Australian of resources to sustain Australia-Africa en-
and sustainable engagement with Africa. context at least, often portrays Africa and Afri- gagement.
The first dimension is political leadership. Af- cans in negative ways. Do we have adequate Within this structure, the Australian Govern-
ter arguably a decade of Australian political dis- research, education opportunities and critical ment could also consider the establishment of
engagement from Africa, with national foreign thinking to serve as a basis for building in- a National Australia-Africa Centre to serve as
policy attention focused elsewhere, the recent formed and respectful relationships? a flagship research body, repository of knowl-
change of government in Canberra presents Here, the higher education and research edge and expertise, and a mechanism to de-
opportunities for new thinking about Australia’s sector has a crucial role to play, with a number liver potential new Africa-focused teaching and
international relations. of initiatives over the last decade indeed seek- training in Australia.
In a 2013 book which captured the Rudd/ ing to build Australia-Africa literacy. The demonstration of greater political lead-
Gillard Labor Government’s foreign policy The Australia Africa Universities Network ership, building of knowledge, and resourc-
towards Africa, we identified how taking a (AAUN) is a consortium of 23 Australian and ing of national engagement infrastructure are
broader view of Australia’s global identity and African universities who collaborate on re- three necessary dimensions of building long-
interests elevated Africa’s strategic importance search and education projects. During the er-term and sustainable Australia-Africa rela-
to Canberra. Included in this was recognition upcoming Africa Week, the AAUN will launch tions. Without these, Australian and Africa will
that Africa’s 54 votes in the United Nations are a new initiative, the Emerging Leaders in Aus- remain on each other’s margins.
critical for a country’s election to important in- tralia-Africa Diplomacy programme, which will
ternational bodies, such as the UN Security build reciprocal knowledge and networking Dr David Mickler is the Dean Global, Africa
Council. among the next generation of scholars and and an international relations academic at
In later research, we identified how a co- policymakers across our countries. Curtin University, Perth. He was previously the
ordinated Africa engagement strategy by the I was also pleased to deliver the inaugural founding director of the Africa Research & En-
Australian Government over several years Australia-Africa literacy programme recently at gagement Centre (AfREC) at The University
was successful in deepening ties with African the Diplomatic Academy in Canberra, entitled of Western Australia (2018-22). His books in-
countries, resulting in an estimated 50 African Africa: Understanding its diversity, international clude New Engagement: Contemporary Aus-
countries voting for Australia in its successful engagement and Australian interests. In addi- tralian Foreign Policy Towards Africa (2013),
UN Security Council seat election in 2012. tion, a new Australian Research Council Dis- The African Union: Challenges of Peace, Se-
As Australia is bidding for another term on covery Grant, led by Curtin University over the curity and Governance (2016) and Africa and
the Council in 2029-30, Africa’s support will next three years, will examine the Political and the Sustainable Development Goals (2020)
Page 38 aUgUST 2022 aUSTRaLIa’S PaYDIRT
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CHARGING
THE CHANGE
“We said to ourselves ‘let’s employ the
whole team out of Ghana’ so we can show
support to the community”
A major resource upgrade and rampant spodumene concentrate “It takes off pressure of raising capital and mineralogy. The project is unique because it Lithium developers are coming under
is non dilutive to existing shareholders,
increased scrutiny for their performance
is so simple - that’s what drives the value.”
prices are about to transform the economics of Atlantic Lithium allowing us to focus on delivering results. Completion of the PFS will pave the way for across the ESG spectrum but Kolff is
confident Ewoyaa can deliver on every level.
Piedmont has been very supportive and
Ltd’s Ewoyaa project in Ghana, making it one of the most highly Atlantic Lithium is running the programmes the mining licence application to begin; a “The project has an extremely low
and study,” Kolff says. “They help us with
process which could take 12 months.
sought-after development assets in the global lithium space. learnings from their own project, so it is great Key to success in the approvals process will environmental impact and, because it is
essentially a dense media separation project,
to have them as a partner. It is in their interest
be winning the support of the community.
to see us succeed too.” Kolff believes Atlantic Lithium is already well it will be a lower power consumer,” he says.
advanced in this area. “We have grid power adjacent, largely
As well as calling on the Piedmont “For any project, community and social hydro and two 20MW solar plants 40km
experience, Atlantic Lithium can lean on performance is one of the most important away, so green energy is going to be a big
the lithium knowledge of Noel O’Brien and operational factors,” he says. “We said to tick with investors.
Atlantic Lithium – listed on AIM under the operation producing 300,000 tpa premium Steve Zaninovich.
Key Details ticker AIM: ALL and planning a listing spodumene concentrate, Life of Mine
on ASX – has already proven Ewoyaa’s revenues exceeding US$3.43bn, Post-tax “Both gentlemen have commissioned DMS “The project is unique because it is so simple -
AIM: ALL economic credentials with a robust Scoping NPV 8 of US$789m and an IRR of 194% lithium projects before and that is rare in
Study, released in 2021. Following a major over 11.4 years, on the back of a $70 million the lithium space, where a lot is driven by that’s what drives the value”
OTC: ALLIF drilling campaign last year, however, the capex investment. mineralogy.”
Website: www.atlanticlithium.com.au Company will release a PFS this quarter
LinkedIn: Atlantic Lithium Limited based on a significantly larger resource, Kolff says the updated study will likely In that regard, Atlantic Lithium is already ourselves ‘let’s employ the whole team out “It has been a challenging six months
while looking to further grow the resource to deliver an increased mine life and improved enjoying the advantages that Ewoyaa is of Ghana’ so we can show support to the since former CEO Vincent Mascolo sadly
Twitter: @AtlanticLithium
plug into a DFS next year. economics. presenting. community. Other than one expat on site, passed away, but the team is determined
the majority of the workforce come from to fulfil his vision and see the project reach
“The Scoping Study was completed last year “In terms of throughput, mine life will be “The metallurgical testwork has repeated the local community. There are not many production. I’ve been involved with several
and that is now being rolled into the PFS,” longer but 2 mtpa seems the sweet spot at very well on almost four times the sample operations which can say that.” projects in Africa and, with the support of the
An improvement to Interim CEO Len Kolff says. “The two major this stage. 37,000m of drilling is currently size. The process so far has been in line with Government, I think we are well on-track to
achieve our goal.”
underway, which will grow the resource,
expectations, which is testament to the simple
changes are the resource – up from 21Mt to
the economics and 30.1Mt – and the spodumene concentrate define measured resources and improve
confidence ahead of the DFS. There is
pricing used. It will be much higher than the
technical aspects $US900/t used in the Scoping Study - that already more than 20Mt in the Indicated
category, and the programme will infill the
is looking very conservative now. They’re
of Ewoyaa could economics.” Measured, as well as exploration step-
the two biggest levers on the project’s
first 1.5 years of planned production to
elevate it to the top of An improvement to the economics and out drilling which will hopefully add more
tonnes.”
technical aspects of Ewoyaa could elevate
the pegmatite lithium it to the top of the pegmatite lithium Atlantic Lithium is supported by NASDAQ-
development pack. development pack. listed Piedmont Lithium Ltd, which is backing “Green energy is going to be a big
the company through to production by
The December 2021 updated Scoping Study funding studies and $US70 million of capex.
indicated the project could host a 2 mtpa tick with investors”
CHARGING
THE CHANGE
“We said to ourselves ‘let’s employ the
whole team out of Ghana’ so we can show
support to the community”
A major resource upgrade and rampant spodumene concentrate “It takes off pressure of raising capital and mineralogy. The project is unique because it Lithium developers are coming under
increased scrutiny for their performance
is non dilutive to existing shareholders,
is so simple - that’s what drives the value.”
prices are about to transform the economics of Atlantic Lithium allowing us to focus on delivering results. Completion of the PFS will pave the way for across the ESG spectrum but Kolff is
Piedmont has been very supportive and
confident Ewoyaa can deliver on every level.
Ltd’s Ewoyaa project in Ghana, making it one of the most highly Atlantic Lithium is running the programmes the mining licence application to begin; a “The project has an extremely low
and study,” Kolff says. “They help us with
process which could take 12 months.
sought-after development assets in the global lithium space. learnings from their own project, so it is great Key to success in the approvals process will environmental impact and, because it is
be winning the support of the community.
essentially a dense media separation project,
to have them as a partner. It is in their interest
to see us succeed too.” Kolff believes Atlantic Lithium is already well it will be a lower power consumer,” he says.
advanced in this area. “We have grid power adjacent, largely
As well as calling on the Piedmont “For any project, community and social hydro and two 20MW solar plants 40km
experience, Atlantic Lithium can lean on performance is one of the most important away, so green energy is going to be a big
the lithium knowledge of Noel O’Brien and operational factors,” he says. “We said to tick with investors.
Atlantic Lithium – listed on AIM under the operation producing 300,000 tpa premium Steve Zaninovich.
Key Details ticker AIM: ALL and planning a listing spodumene concentrate, Life of Mine
on ASX – has already proven Ewoyaa’s revenues exceeding US$3.43bn, Post-tax “Both gentlemen have commissioned DMS “The project is unique because it is so simple -
AIM: ALL economic credentials with a robust Scoping NPV 8 of US$789m and an IRR of 194% lithium projects before and that is rare in
Study, released in 2021. Following a major over 11.4 years, on the back of a $70 million the lithium space, where a lot is driven by that’s what drives the value”
OTC: ALLIF drilling campaign last year, however, the capex investment. mineralogy.”
Website: www.atlanticlithium.com.au Company will release a PFS this quarter
LinkedIn: Atlantic Lithium Limited based on a significantly larger resource, Kolff says the updated study will likely In that regard, Atlantic Lithium is already ourselves ‘let’s employ the whole team out “It has been a challenging six months
while looking to further grow the resource to deliver an increased mine life and improved enjoying the advantages that Ewoyaa is of Ghana’ so we can show support to the since former CEO Vincent Mascolo sadly
Twitter: @AtlanticLithium
plug into a DFS next year. economics. presenting. community. Other than one expat on site, passed away, but the team is determined
the majority of the workforce come from to fulfil his vision and see the project reach
“The Scoping Study was completed last year “In terms of throughput, mine life will be “The metallurgical testwork has repeated the local community. There are not many production. I’ve been involved with several
and that is now being rolled into the PFS,” longer but 2 mtpa seems the sweet spot at very well on almost four times the sample operations which can say that.” projects in Africa and, with the support of the
An improvement to Interim CEO Len Kolff says. “The two major this stage. 37,000m of drilling is currently size. The process so far has been in line with Government, I think we are well on-track to
underway, which will grow the resource,
achieve our goal.”
expectations, which is testament to the simple
changes are the resource – up from 21Mt to
the economics and 30.1Mt – and the spodumene concentrate confidence ahead of the DFS. There is
define measured resources and improve
pricing used. It will be much higher than the
technical aspects $US900/t used in the Scoping Study - that category, and the programme will infill the
already more than 20Mt in the Indicated
is looking very conservative now. They’re
of Ewoyaa could the two biggest levers on the project’s first 1.5 years of planned production to
Measured, as well as exploration step-
economics.”
elevate it to the top of An improvement to the economics and out drilling which will hopefully add more
tonnes.”
the pegmatite lithium technical aspects of Ewoyaa could elevate Atlantic Lithium is supported by NASDAQ-
it to the top of the pegmatite lithium
development pack. development pack. listed Piedmont Lithium Ltd, which is backing “Green energy is going to be a big
the company through to production by
The December 2021 updated Scoping Study funding studies and $US70 million of capex.
indicated the project could host a 2 mtpa tick with investors”
ADU PReVIeW
Gabon gets serious about its
mineral future
frica Down Under can offer the per- dollars of capex iron
Afect platform for governments aiming ore projects usually
to put their foreign investment profile on require.”
the international mining stage. Each year Not only does the
a different jurisdiction emerges at the fo- presence of existing
rum as a new mineral province. infrastructure lower
In 2022, it can be assumed Gabon will capex, it also pre-
be among the main contenders for inves- sents cash cost and
tors’ attention. marketing benefits.
With a long-established industry, abun- “ H y d r o p o w e r
dant infrastructure and a new, dedicated equals greener pro-
Minister of Mines, the West African coun- duction,” Ariti said.
try has all the elements to be of major “We still have rail-
interest to delegates at this year’s Africa way and ships but
Down Under. overall it is greener.
The Gabonese delegation will be led We are already re-
by Minister Elvis Ossindji, who is the first ceiving indications
minister to take charge of a dedicated that there is proba-
mining ministry. It is fitting that one of the bly a $US10/t green
Minister’s first international marketing as- premium to be had
signments is to Perth, given Australian from that. That is
juniors are at the heart of Gabon’s explo- on top of the value-
ration renaissance. in-use premium we
With a 50-year history of manganese already expect be-
mining and more than 30 years as an oil cause of the quality
producer, Gabon has never approached Gabon Minister of Mines Elvis Ossindji of the product.”
minerals exploration and development as Ariti’s confidence
a separate portfolio. Now, however, Os- in the marketability
sindji has responsibility for the sector and Genmin is undoubtedly the most ad- of the Baniaka product was reinforced in
ASX-listed companies in the country are vanced of the triumvirate of juniors to the July when Genmin signed an agreement
seeing the benefit. point that Ariti doesn’t believe the compa- with Anglo American plc over offtake and
“Mining has always been an after- ny should even wear the label any longer. royalties from the project.
thought but not anymore, for the first time, “In the last quarter, we have differenti- The South African major has agreed to
we’ve got a dedicated ministry where pre- ated ourselves from the juniors, and we pay $US10 million in cash immediately for
viously it had been attached to something now consider ourselves an emerging a 1% sales revenue royalty on Baniaka
else,” Genmin Ltd managing director Joe company,” he said. “We have had an al- product. The royalty is payable on the first
Ariti told Paydirt. “Now we have a young, most threefold increase in resources to 75mt of iron ore products sold and Gen-
energetic minister, and we are already 700mt and we have defined the oxide min has a buyback right that is exercis-
seeing through things like licence renew- resource enabling production for the first able at any time.
als being granted, that things are moving.” 12.5 years with 250mt in the oxide.” In addition, Genmin has granted Anglo
Ariti said the change had come in re- The new resource on the company’s American an exclusive right to negotiate
sponse to conversations with industry Baniaka iron ore project – 697mt @ up to $US75 million in project funding and
about how Gabon could progress explo- 39.3% iron – will be immediately plugged 100% of offtake from Baniaka.
ration and development. into a PFS, due for release later this year. “This deal is really the crescendo of our
“It shows the attitude of the Govern- Ariti said the combination of oxide, pri- recent progress,” Ariti said. “Anglo had
ment that they were prepared to come mary and detrital mineralisation over the looked at our project, and the product – its
and ask us our opinion,” he said. “It has first 12 years of mining would allow Gen- value-in-use, grade, metallurgy and phys-
always been a two-way conversation in min to keep opex down. The presence of ical properties – and recognised its qual-
Gabon. cheap hydropower and existing available ity. They were very keen to be involved.
“It is a Tier-1 jurisdiction in African infrastructure would play a role in damp- “It is a huge company with 60 mtpa of
terms with a long history of mining. It ening capex requirements. its own iron ore production and they don’t
already produces 9-10 mtpa of manga- “It is a greenfields discovery but be- do many deals so I think their endorse-
nese, projects are and have been devel- cause of the available infrastructure – the ment here speaks to the quality of Ban-
oped. There is a good mining code, and it port, the rail, the power – it is essentially iaka. How many other companies have
doesn’t have a chequered sovereign risk a brownfields project,” Ariti said. “Our signed an agreement like this at the PFS
history.” project will be a fraction of the billions of stage?”
Page 42 aUgUST 2022 aUSTRaLIa’S PaYDIRT
ADU PReVIeW
impact assessment, it is ing targets. It is only early days for Ar-
very different,” mada with McGowan insistent on taking a
If Genmin was well on methodical approach to exploration.
the way to its final desti- “If you are going to do district-scale ex-
nation, other ASX-listed ploration, you have to have a pipeline of
juniors are still at the be- prospects, rank and choose them for test-
ginning of their journey in ing,” he said. “It’s about the right way to
Gabon. order and structure prospects to ensure
Armada Metals Ltd the best holes go into the best targets.”
listed in December fol- This is not to suggest the company is
lowing a $10 million IPO. only interested in technical success. If
The company is led by the next set of drilling results do show
Dr Ross McGowan who economic intercepts, Armada will ensure
is synonymous with Ivan- prospects are given the rightful attention.
hoe Mines Inc’s world- “Our point-of-view is any success we
class Kamoa copper dis- have in drilling will trigger a resource defi-
covery in DRC. nition programme,” McGowan said. “As a
McGowan brought to- junior, you must explore with an econo-
gether a technical team mist’s hat on, establish results but under-
full of African exploration stand the economics of any discovery as
expertise to identify the early as possible.”
most prospective dis- Despite listing just before the market
tricts for sedimentary- was swamped by global economic and
hosted copper. security negativity, McGowan has been
“Our background is pleased by the level of interest Australian
in exploration of large investors had shown in the Armada story.
Genmin’s Baniaka iron ore project now boasts almost areas using modern The company chose the ASX because of
700mt in resources
technology,” he told its reputation as a natural home for Afri-
Paydirt. “We ran a tech- can explorers.
Genmin’s task now is to ensure it de- nical targeting exercise around south- “We needed to be well-funded for the
livers a robust PFS on time. Ariti, who is central Africa, taking out bor-
well-versed in African iron ore develop- ders and infrastructure so we
ment thanks to his time at African Iron, wouldn’t get distracted and
said the Perth-based company had not Southern Gabon was at the top
simply applied a West Australian ap- of the list.
proach to Baniaka’s development, a de- “If you want to make a dis-
cision which was proving a real benefit covery you need big pieces of
given current industry conditions. ground and go somewhere that
“We haven’t tried to bring it all back to no one has been before and that
Australia, we had the plant designed in is what Gabon has. There has
South Africa by Golder Associates and been no modern exploration and
committed this month to detailed FEED we ended up with 3,000sq km of
work,” he said. “South Africa is a differ- prospective ground.”
ent labour market to Australia and there Despite choosing the region
is good availability of quality engineering for its sedimentary-hosted cop-
and infrastructure resources there, unlike per potential, the data soon led
in WA at the moment. It is an almost fixed- Armada down a different av-
price contract on the plant – with rise/fall enue.
provisions for the steel – so we are not “We picked targets in the ba-
seeing the same cost pressures.” sin and found mafic-ultramafic
The same approach has been taken on units,” McGowan explained.
environmental and social impact assess- “So, we quickly shifted our focus
ments with South Africa, Gabonese and to magmatic nickel-copper sul-
Caribbean experts engaged. phide deposits. This is a classic
Ariti said it was crucial to find consult- setting for them on the edge of
ants who knew the intricacies of operat- a craton.”
ing in unique environments. Initial drilling intercepted the
“You require different skills sets for intrusion with magmatic sul-
building projects in Africa,” he said. “Ga- phides present in all 10 diamond
bon is 2.5 degrees south of the equator holes drilled on the Nyonga pro-
and receives 2.2m of rainfall every year. ject.
So, the challenges of building an iron ore Follow-up work has already
project there are very different to those in begun with ground and air-
the Pilbara. It is a different mindset. It is borne geophysical programmes
the same for the environmental and social planned to identify further drill-
A skilled workforce is one of the hallmarks of
Gabon’s emerging minerals industry
Page 44 aUgUST 2022 aUSTRaLIa’S PaYDIRT
drilling programmes and you need a
real amount of money if you are going to
conduct proper, modern exploration pro-
grammes,” he said. “It was a good time
for the market and a few other ASX-listed
companies are operating there so it was
a good time to get Gabon on the map as
well.”
Apollo Minerals Ltd is the other junior
attempting to put Gabon on the map. Like
Armada, Apollo was attracted by the belt-
scale opportunity on offer in the underex-
plored country.
The company has been steadily ad-
vancing the Kroussou base metals pro-
ject for three years with most of its work
focused on the Dikaki prospect.
In June, the company announced drill-
ing had doubled the high-grade zone at
Eastern Dikaki to more than 500m follow-
ing hits of 19.8m @ 4% zinc-lead from
51.2m, 10.1m @ 5.7% zinc-lead from
15.3m and 13.5m @ 4% zinc-lead from
20m. A new zone was also identified in
the central portion of Dikaki via an inter- Apollo is one of a handful of ASX-listed explorers looking to put Gabon on the radar of
cept of 3.3m @ 5.4% zinc-lead from 20m. international investors
Apollo managing director Neil Inwood
told Paydirt the drilling results, as well as the Kroussou district. that big picture story and believe that the
recent airborne EM, had provided further “We have to get the results from this province-scale opportunity is the prize.
evidence Kroussou was a province-scale year’s drilling but Dikaki’s potential for It is also meaningful that this is shallow
opportunity for Apollo. standalone operations is good,” he said. sulphide mineralisation from surface.
“This work is showing indications that “But we only started there because it had Typically, that has the best recoveries and
the whole belt is mineralised,” Inwood the easiest access. Other areas simply mining styles.”
said. “We know Gabon is underexplored. haven’t had the attention so there could Assisting Apollo’s marketing push is the
The French BGRM in the 60s focused on be other targets which should be a key proactive approach of the Government.
lead but we’re finding significantly more focus.” “Minister Massinge is energetic and
mineralised zinc zones. We will continue The combination of Mississippi Valley- keen to talk,” Inwood said. “As well as the
drilling regionally to shore up our targeting type mineralisation and the shallow na- VAT exemptions on exploration, the Gov-
and then next year will be about cement- ture of the hits has generated plenty of ernment is very positive towards foreign
ing the discovery and moving towards a interest in the Apollo investment case. investment and has been very helpful.”
resource and development studies.” “We are definitely talking to a lot of McGowan agrees the country is in-
While further assay results are needed people, including majors, and the story is creasingly viewed positively by interna-
to confirm the enthusiasm, Inwood is be- that a zinc deficit is definitely coming as tional investors.
coming convinced Dikaki is the first of the world runs out of mineable reserves,” “I’ve never received any negative com-
what could be several distinct projects in Inwood said. “Investors are coming in for ments from investors around operating in
Gabon, only positive. I’ve been operating
there for 10 years and have always been
dealt with professionally both in Libreville
and locally. It is easy to communicate, we
have been treated fairly and it is an open
and transparent system with a good min-
ing code.”
With Fortescue Metals Group Ltd al-
ready active in the country and Anglo
American joining up with Genmin, it ap-
pears majors are beginning to share
McGowan’s enthusiasm.
“It is probably a bit early for them to say
too much, but we keep in touch with the
majors and Gabon is definitely on their
radar.”
– Dominic Piper
Apollo is chasing a province-scale base metals opportunity at Kroussou
aUSTRaLIa’S PaYDIRT aUgUST 2022 Page 45
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deployment of their groundbreaking PhotonAssay units around the world.
FASTER, SAFER AND MORE ACCURATE RAPID LABORATORY EXPANSION
Development of the regional geochemical testing laboratory MSALABS is continuing to expand its geographic footprint,
hub in Saudi Arabia, a partnership with Modern Mining with a several new laboratories due to commence operations
Testing Company Limited, is also progressing well and will be in the second half of this year.
the company’s first laboratory in the Middle East.
In addition to new laboratories at Shanta Gold’s West Kenya
TM
Chrysos PhotonAssay is the groundbreaking assay Project in Kenya and Val d’Or which opened earlier this year,
MSALABS Val d’Or laboratory in Canada MSALABS Bulyanhulu laboratory in Tanzania
technology providing more accurate analysis of gold, silver, MSALABS will commission four new commercial labs Marsa
copper and other elements. It dramatically improves the Alam (Egypt), Bougouni (Mali), Timmins (Canada) and Kankan
all-important turnaround time for results, which are available (Guinea) and an on-site lab at Kibali (DRC) by the end of the MAINTAINING VITAL HIGH-QUALITY CONTACT
STANDARDS
in hours, not days or weeks, and is a significantly more year.
For more information, please contact your local MSALABS
environmentally-friendly alternative to fire assay on-site and in
The new labs will increase analysis capabilities and capacity Providing high-quality sample preparation and analysis representative:
the laboratory.
across multiple services providing benefits for explorers and results to ensure clients get quality data for their decision East Africa and MENA:
The PhotonAssay technology delivers multiple benefits to miners across these regions. making are of utmost importance to MSALABS. The company Stephen Southern - [email protected]
exploration and mining companies. By keeping pace with has both ISO 17025 (Testing and Calibration Laboratories)
The Marsa Alam lab will be the first commercial Fire Assay lab
the dynamic nature of these operations, it enhances timely, accreditation and ISO 9001 (Quality Management Systems) West Africa:
in Egypt, which will have a significant impact on the efficiency
critical decision making, while improving operational, ESG certification and has recently completed ISO 14001 Francis Donkor-Baah - [email protected]
of programs in the region, where geologists will now have
and bottom-line outcomes. (Environmental Management) and ISO 45001 (Health and Americas:
the data to make their decisions on the next hole without
Safe Management) audits. It continually participates in Dave Kwok – [email protected]
The global partnership with Chrysos sees MSALABS guessing or waiting for results.
industry Proficiency Testing with AMIS, CDN Resource,
deploying units across its worldwide laboratory operations, Global Business Development:
In Mali, the new Bougouni lab will provide sample preparation Geostats, Oreas, PTP-MAL, Qotho and Rocklabs.
having established the first unit outside Australia at Barrick’s George Siasios – [email protected]
services and Lithium capability supporting growth of Lithium
Bulyanhulu Gold Mine in Tanzania in October last year. The As part of MSALABS’ continuous improvement initiaitves, the
mining in the area, while the Kankan lab in Guinea will provide
company now has a unit operating at its new laboratory hub lab in Langley, Canada, has successfully extended the
sample preparation and Fire Assay services. The hub lab
in Val d’Or, Canada and at the Morila Gold Mine in Mali. accredited scope with 28 additional methods, also available
in Yamoussoukro will support all labs in the region with
MSALABS will soon install a further three units including at to African customers. It is also in the process of rolling out
additional services and capacity.
their Yamoussoukro lab in Cote d’Ivoire, Barrick’s Kibali Gold accreditation status to labs in Africa over the next 18 months.
Mine in the Democratic Republic of Congo (DRC) and in With the rapid expansion underway in West Africa, the
Timmins, Canada. company has also welcomed a new General Manager for the
region. Francis Donker-Baah recently joined the company and
will be leading this ongoing growth in the laboratory network MSALABS rapid expansion of its laboratory
The PhotonAssay method is an and installation of further Chrysos units in the future. network across Africa and Canada will
environmentally friendly replacement expand the range of services and capacity
for fire assay - it delivers more accurate available to clients in those regions.
results, faster and safer.
www.msalabs.com
ADU PReVIeW
WAF on track for slight decrease from ties in Mali and the Oklo directors are proud
the previous three re-
to be handing the Dandoko project over to a
porting periods. Q4
2021 produced close new custodian with confidence. [The merg-
er] comes at an opportune time for Oklo
another golden to 90,000oz and Q1 shareholders to crystalise value and de-risk
this year produced
their investment in the company.”
marginally more than This is the second time in less than a
performance this last outing . decade Mark Connelly – non-executive
chairman of Oklo – has landed a merger
However, the com-
pany is enjoying an
with B2Gold. Connelly previously secured
increase in aver- a $US570 million merger between B2Gold
age gold prices, with and Papillon Resources in 2014.
est African Resources Ltd (WAF) is the June quarter’s $US959/oz better the Prior to the merger announcement, Oklo
Wfirmly on course to meet annual guid- $US721/oz reported in Q4 last year. San- had been focused on resource growth drill-
ance of 220,000-240,000oz gold at AISC of brado’s underground operations have also ing at Dandoko.
$US1,040-$US1,100/oz from its Sanbrado increased in contribution from 33,655oz Peak hits returned grades such as 6m @
gold mine in Burkina Faso. last in the March quarter to 36,390oz in the 12.56 g/t gold from 124m, including 1m @
WAF achieved 64,114oz gold produc- period just finished. 69.1 g/t from 127m and 11m @ 3.89 g/t from
tion at AISC of $US959/oz, with 66,409oz WAF’s shares have sustained a roll- 81m, including 4m @ 9.88 g/t from 84m and
in unhedged sales at an average price of ercoaster of movement over the past six 1m @ 30.3 g/t from 84m.
$US1,887/oz, for the recent June quarter. months, for better or worse, falling as low as B2Gold released its quarterly update
The company also reported $120 million $1.06/share and peaking as high as $1.41/ in mid-July and continued to produce on
in operating cash flow, with a final tax pay- share. Shares were trading at $1.24/share budget and within an annual guidance of
ment of $79 million pending at the time of as this edition went to print. 990,000oz-1 moz. For Q2, the company
print. WAF also held $222 million in cash Meanwhile, Canadian miner B2Gold produced a total 223,623oz across its three
balance at the end of Q2 with no senior se- Corp’s acquisition of the ASX-listed Oklo operating mines.
cured debt. Resources Ltd is due to be completed next Revenue for the quarter achieved $C382
WAF executive chairman Richard Hyde month. million in sales from 205,300oz at an aver-
was pleased with Sanbrado’s “strong” per- The deal was brought to fruition in May age price of $C1,861/oz.
formance over the quarter but also looked and will give B2Gold an additional 1,405sq The Fekola mine also achieved a quar-
towards opportunities for upside with near- km of ground in Mali’s greenstone belts, in- terly record throughput of 2.42 moz which
mine exploration drilling pointing to further cluding Oklo’s flagship Dandoko project. was 8% above budget and 6% higher than
growth potential. B2Gold’s offer priced Oklo at $90 million this time last year.
“We look forward to releasing the Kiaka and an implied value of 17c/share. Oklo’s It’s an impressive performance by the
feasibility study results in mid Q3,” he said market cap was $70.62 million in July. miner which had to operate through eco-
in a quarterly report released to the market The Oklo board unanimously recom- nomic, financial and diplomatic sanctions
in July. “We also expect to release addition- mended the deal. placed on Mali by ECOWAS earlier this
al exploration results from the MV3 pros- “Whilst the Oklo team continues to see year.
pect, which is shaping up as an outstanding significant potential in the Dandoko project The sanctions, eventually lifted in early
open pit opportunity 6km northwest of our and the region generally, Dandoko is at July, followed the interim Government’s
Sanbrado mine.” an inflection point and this transaction re- announcement of a two-year transition to
Drill hits from MV3 at the time of print in- moves the risks associated with the project presidential elections and new electoral
cluded results such as 4m @ 14.4 g/t gold, development, future capital raisings and law.
15m @ 5.8 g/t, 13m @ 5.3 g/t, 14m @ 3.5 other risks faced by a junior gold explorer in Mali’s borders with neighbouring coun-
g/t, 14m @ 3 g/t and 24m @ 2.1 g/t. a foreign jurisdiction,” Oklo managing direc- tries are now open to normal commercial
Although Sanbrado continues to perform tor Simon Taylor said in May. traffic with supply routes available again.
within guidance, the June quarter was a “B2Gold has proven operating capabili-
Sanbrado produced 64,114oz gold in the June quarter
Page 48 aUgUST 2022 aUSTRaLIa’S PaYDIRT
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ADU PReVIeW
Food security
threatens
African
development The June edition of Paydirt Unlocked welcomed Black Rock Mining managing
director John de Vries, Perseus Mining managing director Jeff Quartermaine
and former Firefinch managing director Michael Anderson
frican mining has long grappled with a 70%), Black Rock Mining Ltd (more than people getting concerned about what this
Anegative sentiment from foreign inves- 45%) and Predictive Discovery Ltd (more means for the future.”
tors – whether unwarranted or not – bathed than 35%). Mahenge hosts one of the largest graph-
in a stigma of high royalty rates, difficult gov- The continent is facing renewed investor ite resources in the world with 212mt @ 7.8
ernment relations and threats of expropria- uncertainty with not only the devastating TGC alongside a 70mt @ 8.5% reserve.
tion. droughts affecting communities, but also The DFS outlined a four-stage construction
While mid-tier gold producer Perseus a failed coup earlier this year in Guinea, schedule to produce 340,000 tpa over a 26-
Mining Ltd has seen success over the past continued insecurity in Ethiopia and trade year period for a forecast NPV of $US1.16
decade in Cote d’Ivoire and Ghana, man- between Mozambique and Tanzania dam- billion.
aging director Jeff Quartermaine is now aged by terrorism. On top of securing food and fuel, de Vries
uneasy over impending food shortages, es- More recently, Rio Tinto plc halted works also showed concern over procuring infra-
pecially with the company set to expand its at its Simandou iron ore project in Guinea structure for projects following supply chain
presence into Sudan. following a disagreement with a Chinese disruptions in China from revolving pan-
“We’re quite concerned about the food partner and the local government. demic lockdowns.
security in Sudan where they get a large Quartermaine said Perseus – on track to “China is the factory of the world and
portion of their wheat from Ukraine and produce 500,000 ozpa gold this year – was when you’re struggling to get stuff out of
Russia. If that situation doesn’t resolve, better equipped to weather the storm than the factory of the world, that really starts to
there’s going to be a lot of hungry folk many of its peers. disrupt supply chains in a very subtle way,”
around and that leads to instability,” Quar- “There will be a period of uncertainty, but he said. “So, while it’s getting increasingly
termaine said at Paydirt’s Africa Unlocked with uncertainty also comes opportunity,” expensive to build a mine, it’s also getting
discussion in June. he said. “So, for companies such as our- increasingly difficult to source the mate-
“I think there’s a lot more [instability] to selves that are generating a lot of cash and rial to build a mine. You now start to look
come and it’s going to have a very profound are in a strong financial position, it may not at these [commodity] super-cycles in terms
effect on our industry and it’s probably go- be such a bad thing after all. We don’t want of price because we didn’t build enough
ing to change the perspectives of a lot of to trade on the misfortune of others but mines when we should have.”
people. No doubt there has been a squeez- I suspect that is going to be an inevitable In what was his last public appearance
ing on margins, so investors will look at that outcome of all these global tensions.” before stepping down as managing director
and say, ‘maybe I should put my money Black Rock managing director John de of Firefinch, Michael Anderson described
somewhere else’.” Vries, who is working to bring the Mahenge Mali as “not for everybody” but also pointed
Quartermaine’s comments reflect a graphite project in Tanzania towards first to other jurisdictional risks in other parts of
larger period of difficulty for miners in the production off the back of a $25 million in the world that perhaps go unnoticed.
global space as of late, attributed to skills raising in May, agreed that food security is Anderson’s departure came as Firefinch
shortages, inflation, construction wait times becoming an issue, but so was securing announced its Morila gold mine had missed
and supply chain disruptions. This is some- other resources such as fuel. production guidance by almost 4,000oz,
thing Perseus will need to navigate its way “[Food security] is beginning to be a real with the company attributing the deficit to
through having recently completed its ac- issue and maybe that induces migration difficulty in securing vital operational equip-
quisition of Sudan-focused Orca Gold and where you’ve got all sorts of flow on effect,” ment following sanctions imposed on Mali
the Block 14 project. de Vries said. “But then there’s the overlay by the Economic Community of West Afri-
While Perseus (market cap of more than of fuel, and fuel is a doozy. can States.
$2 billion at the time of print) has managed “We looked at our power station, which “The country and continent risk is part of
to maintain its share price value over the was running off of diesel power, it was 32c/ the equation, but it’s not the only part. You
past six months, even hitting a 10-year high unit 18 months ago, it’s now into the 40s. weight it up and Australia isn’t risk free ei-
in April, some of its peers in Africa have not Thankfully we’ve got access to the grid. ther. I’ve only been party to one expropria-
been as fortunate. “But if you’ve got a large business that’s tion in my career and it was in New South
Share price devaluations over the past very dependent on diesel fuel, it’s really go- Wales,” Anderson said.
six months include West African Resources ing to impact you. We’re seeing these flow- “People tar Africa with this brush of risk
Ltd (almost 13%), Firefinch Ltd (more than through effects in terms of costs and on and the like, but what’s the conversation in
Page 50 aUgUST 2022 aUSTRaLIa’S PaYDIRT
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