After more than two decades in the gold “In addition to refining “At the moment, I think WA is the flag bearer for
refining business, The Perth Mint general services, we produce the gold industry and what it actually does for
communities. Taking iron ore out of it, where
an extensive range
Proudly taking continues to see things like never before. coins, and offer various Backed by a successful 120-year history, The
would WA be without gold?”
of bullion bars and
manager refining Nathan Edwards
investment options
Perth Mint’s standing as a trusted refiner is well
including gold-backed
established, which Edwards says is an advantage
exchange traded
Australian “I have seen a lot of cycles from when gold was products listed on the ASX and NYSE, depository of being aligned with the State Government.
He said that being government-owned alleviated
$US250/oz in the early 2000s through to now.
accounts and a digital trading app, GoldPass, each
some of the financial strains other refiners
allowing people to buy gold as a store of wealth,”
I don’t think we conceived that the gold price
around the world have faced in the past.
Edwards said.
would be sitting at almost $US2,000/oz,” Edwards
precious metals said. In the scheme of the precious metals sector, gold “You need to manage your metal properly as it
is no different to a gold mine where you must
A buoyant gold price has sparked widespread
is regarded as the ultimate safe-haven asset and
understand how much metal is going in and how
preferred to the oft-overlooked silver.
activity across the entire gold chain, of which The
much metal is going out; you can’t lose any of
Perth Mint’s refinery is an integral link.
History indicates that when the gold price runs,
that metal,” Edwards said.
to the world for Gold from Alaska, Africa to outback Western the silver price follows on the upward trajectory “Assay integrity is imperative, which also goes
and while that is the case now, there was a lag in
Australia is refined at The Perth Mint and while
back to our government guarantee. A lot of our
household gold heavyweights are clients of
positive sentiment towards the latter in the latest
clients aren’t diversified miners so all of their cash
the State-owned establishment, the current
bull-run.
flow goes through our refinery. That means we
environment is seeing a raft of new source feed
120 years supplied to the refinery. “Our gold processing capacity is extensive so need to get it right because if assays aren’t on
we’ve recently embarked on expanding our silver
point, it can create a cash flow concern.
processing plant. While it has not yet translated
“Depending on the cycle, some miners may go
“If you look at it from that perspective, a refinery
into higher silver volumes coming through,
for lower grade dirt because it is more profitable
is a critical part of a mining company’s entire
to do so in times of high prices, but that doesn’t
silver so there is plenty of scope there for that to
necessarily translate into higher volumes from Australia has the largest known reserves of operation yet people don’t often think of it in
that way.
our existing customers,” Edwards said. increase,” Edwards said.
“What it does mean is that there are a number “Most of the supply at the moment is generated “The Perth Mint is the only Australian refiner
Through our trusted products and services we develop the of junior operations starting up while others are as a by-product of concentrates and from mines accredited by the five commodity exchanges in
coming online, which is what happens when in north-west Queensland. Mines in south and London, New York, Shanghai, Tokyo and Dubai, so
markets and create the demand for Australian precious metals. prices are sustained.” central America, particularly Mexico, are also big producers expect us to undergo rigorous testing
Regardless of price cycles, The Perth Mint miners of silver with their output going through of our standards each year so they can be assured
that we are giving them 100% return on their
From refining and assaying Australian gold to manufacturing refinery’s services thrive on producing a European or Australian smelters. We do get the metal,” he said.
bullion bars and coins, and offering secure storage solutions minimum 99.5% gold and 99.9% silver products product from them, but in terms of actual mined The Perth Mint’s sustained level of excellence
dore, our expectation is that silver prices need
that are tradeable in international markets, while
and innovative digital gold platforms, we’re making gold and the 99.5% and 99.9% 1kg and 400/oz gold bars are to be sustained for reserves to be mined. Once is maintain by adhering to its core values and
embracing technology and innovation to ensure
popular value-added investment products. there is price stability, we’ll probably see more
silver accessible assets to own. “The benefit of The Perth Mint is that we operate operations come to fruition.” its offerings are delivered with the utmost
attention to industry best practice and ensured
across the complete gold supply chain from mine Reinforcing its capabilities in silver refining will safety.
to market. enhance The Perth Mint’s growth aspirations as a
global refiner. While “keeping his cards close to his chest” as
to exactly what The Perth Mint is working on,
Unrivalled customer service and
business integrity are the pillars of Edwards said the last 2 to 3 years had seen
The Perth Mint, with the organisation automation practices widely explored at the
supremely aware of its obligation refinery.
to create and maintain its own “Ultimately, we want to see the entire process,
reputation as well as contribute to including the production of a finished gold
that of the entire Australian gold bar, boxed and bound for market, to be fully
industry. automated and handled only by robotics,”
Edwards said.
“Our services create income for
the State, jobs for more than 400 “The great thing about this advancement in
Western Australians, and we help manufacturing is that we have an engineering
to promote brand WA in the global team inhouse with the capabilities to create
community. these bespoke solutions.
“We are an integral part of the gold “With these greater efficiencies, we will reinforce
industry in this country, so if we are our prominent standing in the industry and
successful on the international stage continue to deliver a superior level of customer
A sponsor of the
then it is a positive outcome for the service and product quality that are second to
none.”
broader gold sector,” Edwards said.
Diggers & Dealers Mining Forum for 20 years.
The Perth Mint general manager refining Nathan Edwards
perthmint.com/refine
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 51
MINT0128B-DPS_420x297mm Perth Mint DiggersDealers col press.indd 1 7/6/19 1:34 pm
DIGGeRs & DeALeRs
Comprehensive Supply Chain Solutions
Australian Potash takes note
APC will partner with the Wirrpanda
Foundation to create opportunities
for indigenous employment at
the Lake Wells SoP project. The
agreement was signed last year.
Pictured is APC non-executive
chairman Jim Walker, Wirrpanda
Foundation founder David
Wirrpanda, APC managing director
Matt Shackleton, Wirrpanda
Foundation director and general
manager – community and
development Troy Cook and Shire of
Laverton chief executive Peter Naylor
hose who have trailblazed in Western EPA second, so they are developing under Redox, Migao, Mitsui & Co. and HELM –
TAustralia’s emerging SoP sector have a small miners code if you like. When they which is enough to satisfy the debt provid-
provided Australian Potash Ltd (APC) with first started talking about that a few years ers, including Australia’s big four banks and
a blueprint to follow in project development. ago we weren’t sure if you could do that.” international outlets, interested in support-
“One of the advantages of having both APC has been wedded to the EPA-first ing Lake Wells.
Kalium [Lakes Ltd] and Salt Lake [Potash approach all along and hopes to achieve Lake Wells is also subject to potential
Ltd] go before us is that mistakes were that milestone for the Lake Wells SoP pro- Northern Australia Infrastructure Facil-
made and Kalium are quite open in say- ject in Q4 joining Kalium Ltd and Reward ity funding and with APC opening its data
ing the big mistake they made was adopt- Minerals Ltd with such permits. room to all interested financiers, Shackle-
ing the wrong contract strategy. They tried It took Kalium about 13 months to be ton expects term sheet options for the $208
to deal with that project first time around granted an EPA and APC is on track to million Lake Wells project soon.
themselves and you can’t build these things have its done within 10-12 months, which is Shackleton said he was feeling the love
yourself unless you have a workforce of an indication of the progress both industry from all potential parties willing to get be-
120 people. They were trying to control all and regulators are making in what is a new hind Lake Wells.
of these subcontractors and execute an industry for the State. “It is all about where you are at with your
EPCM style development, which eventually Ahead of the EPA which has been rec- project. If this [Mines & Money Connect]
ran off the rails,” APC managing director ommended to the Minister, APC has minor conference was last year we were probably
Matt Shackleton said. and preliminary work approvals in place for too early for some of these guys as we still
“Kalium did the right thing and pulled Lake Wells. had a lot to do. We only have three or four
the handbrake and went to an EPC footing “Commencement of development is not milestones to go before we are finished; it
which is exactly what we always said we will contingent on that EPA approval. What it is is a valuation metric for them. They need to
do. The last seven months for us has been contingent on is us securing equity invest- see the value and we are a value stock with
about designing the whole engineering de- ment. It is great that the market has taken a market cap over $53 million,” Shackleton
sign programme on EPC-style packages of updates on offtake, EPA and FEED really said.
work. We are in the middle of issuing tender well. We have gone from raising money at In the meantime, Shackleton signalled
documents now.” 5c/share in May to having a market cap of there may be more news on the offtake
Speaking to Paydirt last month, Shack- $53 million [at 13.5c/share] today. We have front coming.
leton applauded counterpart Tony Swieric- doubled our share price and value in mat- “We have conversations alive around
zuk, managing director of Salt Lake (SO4), ter of months and that will hold us in good North and South America which are two
for taking a “different” route to production at stead to secure the equity investment we very lucrative markets and I reckon we will
the Lake Way SoP project. need,” Shackleton said. probably say something about those in the
SO4 (see page 48) is on track to be WA’s A strategic or institutional party with the next four weeks,” he said.
first producer of SoP early next year. balance sheet to “go again and again” to “It is likely the EPA announcement will
“Tony and the whole ex-Fortescue [Met- support APC through to production would come first followed by further offtake an-
als Group Ltd] crew went into SO4 and be a good outcome. With EPA approval on nouncements. At the moment we have
showed us all a different way of developing the horizon and FEED almost complete, 40,000t uncontracted but that is ok, we can
a project, a different way of financing a pro- Shackleton believes the company is well trade that spot if we wanted and it is not
ject and a different way of getting offtake. placed to make a final investment decision too bad a position to be in. A better posi-
They have an enormous human resource on the 150,000 tpa Lake Wells SoP project. tion would be to get another Tier 1 partner
team that have chipped away at that strat- The company has 130,000 tpa of SoP in the North or South American markets for
egy,” Shackleton said. production sold under binding offtake offtake.”
“SO4 has developed first and gone for agreements with global Tier 1 parties – – Mark Andrews
Page 52 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
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Comprehensive Supply Chain Solutions
Bryah holds three-of-a-kind
lot can happen in three years, as with our future exploration,” Marston said. campaign on the manganese front before
A Bryah Resources Ltd managing direc- “To explain the significance of that, the end of the year. It comes after the
tor Neil Marston has experienced since we need to understand that our Mount most recent programme at the Brumby
listing the company in October 2017. Labouchere prospect is close to a ma- Creek prospect returned a series of high-
Bryah was floated on the back of pro- jor geological boundary. Such basin grade hits such as 30m @ 33.6% man-
spective gold-copper tenements about margins were good locations for ancient ganese from 9m (including 16m @ 38%
150km north of Meekatharra. However, hydrothermal fluid flows to bring mineral- from 21m) and 25m @ 29% manganese
within a week of trading on the ASX, its rich water towards the surface where the from 4m (including 5m @ 36.2% from
focus pivoted towards manganese after minerals precipitate out and accumulate 23m).
Marston spotted a small mining operation over time. It is possible the manganese, The upcoming programme is likely to
on a neighbouring which is a very follow-up on pending results from the
licence from the mobile metal, has Cheval and Black Beauty targets.
top of Horseshoe accumulated on Marston said a resource estimate
Range where he the surface here for the manganese was something on
was attempting to and scavenged the Bryah’s agenda for the back half of 2021,
make a phone call. nickel, copper and potentially solving the depleting ore prob-
A lucrative JV cobalt up with it, as lem at OM’s Bootu Creek operations.
with Bootu Creek it is known to do. “One of the challenges that analysts
mine operator OM “The question have had in looking at what we’re doing
Holdings Ltd fol- for us to answer is we haven’t actually put out any mineral
lowed almost 18 is where has the resource estimates as yet, so they really
months after that n ic ke l - c o pp er- can’t do a proper valuation,” he said.
strategic shift in cobalt come from? “It was a conscious agreement with OM
direction and now, Perhaps there is that we wouldn’t try and put out JORC re-
as the third anni- a richer source sources from day one. The plan was to
versary of Bryah’s present at depth go and drill-test as many target areas as
IPO rapidly ap- beneath the man- we could and then towards the end of the
proaches, Marston ganese or horizon- programme we’ll go back and infill those
appears to have a tally nearby. That’s areas. So, next year you’ll start to see a
third mineral op- why we have start- whole lot more of a resource drill-out and
portunity in the ed with a soil sam- estimation work coming out, which will
Bryah Basin to con- pling programme of then flow through to economic assess-
sider. the area before we ments, mining lease applications and try-
In late August the get the drill rig back ing to fast-track into production.”
company reported on the ground.” Marston is by no means closing the
several promising For Marston, door on a potential gold-copper discov-
results from drilling there is no one ery either. Bryah’s recent drilling at the
at the Mount La- opportunity stand- Windalah project returned composite
bouchere prospect Bryah has been busy with the drill bit ing out above all samples of 6m @ 1.56 g/t gold from 51m
which were con- since listing in late 2017 others in Bryah’s (including 3m @ 2.71 g/t from 51m) and
firmed to be highly burgeoning portfo- 14m @ 1.02 g/t gold from 178m (includ-
anomalous in nick- lio, with each po- ing 2m @ 2.37 g/t from 184m). Copper
el-copper-cobalt. Best intercepts from tential mineral stream carrying its own mineralisation of up to 878 ppm was also
the RC drilling included 10m @ 0.13% array of benefits. And in a market which intersected in two holes.
nickel, 0.21% copper and 0.17% cobalt, is favouring early-stage exploration, he Bryah has already defined an inferred
including 4m @ 0.22% nickel, 0.38% is prepared to throw whatever he can at resource of 600,00t @ 2.2 g/t gold for
copper and 0.28% cobalt. a prospect showing signs of something 42,500oz at Tumblegum South, part of
Marston said the prospect was origi- much bigger at play. the company’s Gabanintha project, about
nally drilled back in May for its manga- “From a small explorer’s point of view, 40km south of Meekatharra.
nese potential as part of the $7.3 million there’s appetite in the financial markets “We’re looking at monetarising that
JV with OM, but the base metals results to fund greenfields exploration,” he said. through some sort of ore sale agree-
were too compelling to be ignored. “Chalice Gold Mines [Ltd’s] Julimar pro- ment or something like that,” Marston
Bryah’s JV with OM across a 660sq km ject is a fantastic result for the indus- said. “We’ve got a mining lease applica-
ground package only applies to manga- try because it’s this whole new mineral tion happening and we’re advancing it as
nese opportunities. system right under everyone’s nose. It quickly as we can because at the current
“The presence of the low-grade man- shows that if you put the right technical gold price, even a 40,000oz deposit can
ganese with the nickel-copper-cobalt team together – and we think we’ve got make some really good money.”
suggests the mineralisation may have a good technical team within our group –
been deposited from hydrothermal fluid you’ll get results.” – Michael Washbourne
flows, so we will need to test this theory Bryah hopes to roll out another drilling
Page 54 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Market ready to sample
new MinAnalytical innovation
ten years after establishing itself as a leading player in
the assaying services industry MinAnalytical is heading
into its second decade as a pioneer in industry innovation
and technology while continuing to provide traditional
assaying services and excellent customer service.
Since its inception in October 2010, immensely from having the weight of
MinAnalytical has focused on delivering the entire Perenti group behind them.
clients the essentials of lab analysis; “It is a huge advantage for MinAnalytical,”
prompt, reliable, high-quality services James says. “It provides not only the
which can be trusted. Added to that balance sheet to support the business
mix is a commitment to innovation and but the customer base within the group MinAnAlyticAl
the support network of the large global – whether through Barminco, Ausdrill,
mining services company which African Mining Services or African A Perenti Global Ltd company,
created it. Underground Mining Services – and the MinAnalytical offers a
“Starting a new lab from a clean reputation to leverage from.” comprehensive range of
geochemical and precious
canvas with a healthy budget from a The ensuing decade has seen metal analyses to the mineral
strong parent company was fantastic,” MinAnalytical expand its presence in the exploration and mining
MinAnalytical’s Business Development Australian market where the company industry
Manager Gary Wheeler says. has developed a loyal client base. Addresses:
Having Perenti as its parent company “These are clients who have been with 50 Baile Rd, Canning Vale WA 6155
delivered MinAnalytical an immediate us for the whole journey and trust us,” 43 Great Eastern Hwy, Kalgoorlie WA
flying start and the company quickly Wheeler says. 6430
established itself by leveraging Perenti’s Tel: +61 8 6258 9600
international network of businesses to An emphasis on client relationships Email:
deliver additional value for clients in runs deep throughout Perenti – one of [email protected]
terms of add on services. its five core principles is “Walk in their Key personnel: teresa Soanes
shoes” – and the experience within the (General Manager) Gary Wheeler
According to Perenti – Investments MinAnalytical team offers them a unique
Chief Executive Officer Donald insight into client needs. (Business Development Manager)
James, MinAnalytical’s clients benefit
Page 56 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
“It is a huge advantage for MinAnalytical,” James says.
“It provides not only the balance sheet to support the
business but the customer base within the group –
whether through Barminco, Ausdrill, African Mining
Services or African Underground Mining Services –
and the reputation to leverage from.”
Having started its existence with a enhance client outcomes in ways not
focus on doing the simple things possible with fire assay. It allows us
well, MinAnalytical is now confident to provide reliable information faster
of expanding its capabilities. Like and with cleaner safer outcomes. It
other companies in the wider Perenti is an opportunity to better integrate
group, MinAnalytical is committed to ourselves with clients by enhancing
technological innovation – Enabling their value creation.”
tomorrow is another of the company’s Trust will again be vital to clients’
core principles – and is delivering what adoption of the new technology.
it believes is a step-change in gold Since securing National Association
assay analysis techniques.
of Testing Authorities (NATA)
The Chrysos PhotonAssay technology accreditation in 2018 for PhotonAssay,
– originally developed by CSIRO MinAnalytical has spent two years
“We have to really know our clients, and brought to market by Chrysos familiarising clients with the assaying
not just who they are and what they’re Corporation – is a chemistry-free technique and its capabilities.
asking for, but what really matters to approach to gold assaying, offering a “With NATA accreditation we ensure
them,” MinAnalytical General Manager faster, safer and more environmentally- the quality of the process is spot
Teresa Soanes says. “At MinAnalytical friendly alternative to the conventional on and clients can understand the
we have a dedicated group of fire assay techniques. MinAnalytical decisions and processes. We make sure
professionals who have been with us and Chrysos have been refining the we maintain high standards,” Soanes
from the beginning. People like Dave technology for the last three years says. “Our clients are trialling our new
Martin (production manager), John across a variety of sample types and technology and are transitioning across
McGrath (commercial manager), Daryl particle sizes. The new technique to it when they’re comfortable in the
Harris (chief fire assayer), Thomas Dass has ultimately proved quicker, more absolute certainty of the quality of their
(senior laboratory technician) and reliable and as accurate as fire assaying results.
Gavin D’monte (spectroscopist) are but without the toxic waste. MinAnalytical’s investment in
an integral part of our business and James sees PhotonAssay as a vital part PhotonAssay and other innovations
have helped us develop the business of the group’s push to provide end- gives it a leading position in a new
into the successful, industry leader it is to-end services to clients through the generation of mineral analysis. After
today. That is a real advantage when mining cycle with the new technology building its reputation over 10 years, it
clients need someone they can trust to coexisting with the traditional suite is a role the team are ready to take.
help them on their journey. They can of services that MinAnalytical already
call us anytime, from anywhere, and offers. “We are taking a significant position
know we are happy to help.” “We aspire to be indispensable to our in the future of assaying as a leader
clients’ by delivering and innovator rather than a follower
enduring value and our clients will be the greatest
and certainty,” beneficiaries of that,” Soanes says.
James says. “Fire
assaying has been
the established
process for 500
years, and there is
still a purpose for
it, but we believe
PhotonAssay can
DIGGeRs & DeALeRs
Juniors hardened
for crack at iron ore market
nother iron ore boom has arrived and have the size of project to justify a big
AVenture Minerals Ltd is poised catch spend and we are retro-fitting what we
the boat this time around. have.”
Back in 2014, the company had started An August 2019 feasibility study on Ri-
mining the Riley DSO hematite project, ley – based on a $US90/t 62% iron ore
north-west Tasmania, just as the iron ore price – provided the impetus for Venture
price tanked. to pursue $5 million to achieve first DSO
Riley is a two-year, 1 mtpa project that from the 1.8mt @ 57% iron ore at Riley.
Venture can bank on to stoke its wider Prosperity Steel United Singapore Pte
portfolio, namely the flagship Mt Lindsay Ltd has committed to full offtake from Ri-
tin project in Tasmania, so the opportu- ley, which will deliver post-tax cash gen-
nity to capitalise on a buoyant iron ore eration of $31 million, IRR of 303% and
market is being embraced. post-tax NPV of $27 million based on two
Since then, the iron ore price has only years of production.
flickered with opportunity. A small win- Riley is within 2km of a sealed road,
dow open in 2017 but quickly shut again making for easy access to port at operat-
and last July saw prices hit $US120/t in ing costs of $56/t FOB.
the wake of the Vale S.A. tailings dam Road and port access agreements
tragedies in Brazil. However, while punt- have been completed, with dry screening
ers were lapping up the strong gold price and other mining associated activities in
environment at Diggers & Dealers 2019, progress at the time of print.
bearishness in other commodities, in- “We are ahead of the curve of the new
cluding iron ore at $US85/t, were being producers of our size because of the
lamented. timeframe to get these things running.
Apart from the major producers, any Any potential expansion from Rio Tinto
other iron ore hopeful would struggle to [Ltd], BHP [Ltd] or Fortescue [Metals
make profits from $US85/t and entering Group Ltd] could be done by tweaking
this year it looked as though the market things here and there to get another 1 Andrew Radonjic
would be shut to juniors again. mtpa, but it won’t be significant [expan-
Few pundits were anticipating that sion] because they have already expand- tralian State Government approval for
a global pandemic would hit so hard in ed previously,” Radonjic said. the mining proposal and mine closure
2020 with wide-ranging ramifications. “I’d imagine the risk profile to expand plan for Iron Ridge and executing a min-
The lockdown has compromised sup- again maybe a little too high for them, al- ing cooperation and benefits agreement
ply chains in various commodities, im- though they may change their minds de- with the Wajarri Yamatji native title claim-
pacting prices for several minerals in- pending on how long this infrastructure ant group one, Fenix Resources Ltd an-
cluding iron ore ($US116/t at the time of boom or how significant the re-emer- nounced support for a $15 million place-
print). gence of China is.” ment to develop the project had been
Demand side dynamics are also Radonjic hoped to have financing received.
changing as countries such as China locked away at the time of print in order Hartleys Ltd led the placement at
implement stimulus packages based on to get the first ships loaded with Riley ore 14.5c/share, with new Australian and in-
heavy infrastructure spending to reboot while prices remained robust. ternational investors participating in the
economies stalled by COVID-19. “We are working pretty hard to get that raising for Fenix’s Iron Ridge project,
“At some stage there is going to be a debt financing done. It has had it’s chal- about 480km by road to Geraldton port.
bit of nation building after this crisis and lenges because it is not much we are Fenix was close to finalising an offtake
they will need steel, whether it is Europe asking for so it has generally been too agreement for Iron Ridge, a 1.25 mtpa
or US or anywhere else. I think there is much hassle for the banks or anyone like high-grade iron ore project slated for a
going to be a huge requirement for steel that who wants to look at it but a bit too 6.5-year mine life.
with governments creating jobs. I think much for an equity raising, so it is a bit “We are advanced on all of those
we are in a good space,” Venture man- of an awkward space. We have certainly agreements and we will be announcing
aging director Andrew Radonjic told Pay- had some non-traditional offers as well,” conclusion of them in the next month
dirt. Radonjic said. which will then pave the way for award-
“Hopefully the iron ore price stays An indication of the liveliness within ing mining contracts and road transport
above $US100/t for the next two years, the junior iron ore sector is the support contracts, port agreements, etc. with the
but our job is to get costs down as much for projects being garnered by Venture’s aim of being in production by the end of
as possible as we are a relatively high- peers in the space. this year and making our first shipment in
cost producer because we just don’t On the back of securing Western Aus- 2021,” Fenix managing director Rob Bri-
continued on p60
Page 58 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Comprehensive Supply Chain Solutions
Venture Minerals Ltd’s Riley iron ore mine could provide becomes a lot easier if we only have to raise $20 million to fund
the company with a major sugar hit in the next couple of it.”
years. Mt Lindsay is the major pathway for Venture to organically grow,
The company’s main game has always been the Mt Lindsay while an exploration portfolio of West Australian assets can be
tin project, however, the vagaries of the tin sector have a potent value creator for shareholders as evidenced by Chalice
kept the $50 million underground development at bay. Gold Mines Ltd’s interest in the South West nickel-copper-PGE
project.
However, with an estimated $31 million cash to be generated Chalice has committed to spend up to $3.7 million on the South
from Riley, Venture’s funding conundrum for Mt Lindsay could West project to earn a 70% interest.
become a lot simpler. “Mt Lindsay is still the flagship project unless we make a
“Riley is very meaningful, it stops diluting shareholders and discovery somewhere else or if Chalice makes a discovery on
it allows us to get on with other things within the company,” the project. If Chalice makes a discovery it won’t be our flagship,
Venture managing director Andrew Radonjic said. we will be along for the ride with the capacity to contribute and
“You can do a lot of things with cash and it gives you a lot of maintain a 30% position. If we have the cash it is easy do rather
flexibility. An underground mine at Mt Lindsay, which is easy to than borrowing it,” Radonjic said.
permit and capex of maybe $50 million with a smaller plant; it
Production from Iron Ridge is scheduled for early 2021
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 59
DIGGeRs & DeALeRs
Comprehensive Supply Chain Solutions
erley told Paydirt. market rebalances the premium product, “Relative to DSO crushing and screen-
“As soon as we saw a favourable mac- the cream, will come to the fore,” he said. ing, beneficiation adds cost. In terms of
ro-economic environment and oppor- The Australian iron ore industry’s ma- beneficiation plant flowsheet, simpler
tunity to utilise an under-utilised port in turity means head grades are inevitably is better, with a lower capital cost; high
Geraldton, we moved as quickly as pos- falling, giving smaller DSO players a throughput leads to lower unit operating
sible to get into production. It is quite a niche space in the current environment, cost.”
simple operation; small – only one quar- while the heavyweight producers contin- – Mark Andrews
ry, one excavator, three trucks, a mobile ue down the path of beneficiation.
and modular crushing and screening unit “In Australia, recent growth has been
– and very simple trucking it to port. driven by demand coupled with increas-
“There’s nothing we can see standing ing volume of lower grade inventory. In
in our way of production at the moment some cases, this has led selected pro-
given the short timeframe. We have a ducers to beneficiate lower grade sat-
very high-grade product which we think ellites within a hub to preserve higher
will give us some resilience during any grade resources, extending life of mine,”
price fluctuations as well. At the mo- Independent Metallurgical Operations
ment, there isn’t a huge premium for Pty Ltd (IMO) director of metallurgy Daryl
high-grade product but if and when the Evans told Paydirt.
Prospective iron ore projects in Peru have been the focus for monitoring blasting ahead of
Strike Resources Ltd for the past 15 years, until a recent shift bulk sampling scheduled at
back to Australia. the time of print.
Also, at the time of print, Strike
“The South American plays are orders of magnitude bigger than had lodged the state deed
what we have here,” Strike managing director William Johnson told with DMIRS and expected to William Johnson
Paydirt. be granted a mining lease imminently.
Johnson was referring to the 1.5 mtpa Paulsens East iron ore Meanwhile, a mining proposal was also to be submitted to
project in the Pilbara. DMIRS for approval of mining and development of Paulsens
A major milestone was achieved by the company in August when East which is slated to produce high quality lump and fines over
it announced a native title mining agreement and state deed with a four-year period.
traditional owners of the land the Puutu Kunti Kurrama and Pinikura “It is only a small footprint project and not capital intensive,
People (PKKP). with a capex of less than $10 million. We’re highly leveraged
“We were in the middle of negotiations with PKKP when the when the iron ore price is up and we can create serious value
[Juukan Gorge caves] incident with Rio Tinto (Ltd) occurred. We for shareholders, albeit there is some risk on the downside,”
were concerned about that and how that would affect our situation,” Johnson said.
Johnson said. Strike hopes to be in production at Paulsens East next year.
Johnson said Strike’s relationship with the community and PKKP
was strong, with community observers and PKKP representatives
Paulsens East could be in production next year after
native title and state deed agreements between
Strike Resources and PKKP were completed
Page 60 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Auteco nests on 1 moz
at Pickle Crow
Rather than dwell on a subdued response to the announcement of an inferred resource of
1 moz @ 11.3 g/t gold at the Pickle Crow project in the Uchi sub province of Ontario, Canada,
Auteco Minerals Ltd has forged ahead with a substantially expanded drilling programme
across the property.
“We’ve upped the drilling from 10,000m to 45,000m,
which we’re pretty happy about,” Auteco executive
chairman Ray Shorrocks said.
Despite a buoyant gold sector and a healthy appetite from
investors to back explorers, there are few companies in the
smaller end of town with the ability to act as decisively as
Auteco has in this instance.
In early July, Auteco’s $30.4 million placement at 13.5c/
share was done on the back of a maiden resource of
830,000oz gold @ 11.6 g/t.
“From our point of view, this raising has really shaped our
register and given us strength of capital to chase this asset
wholeheartedly,” Shorrocks said at the time.
The company has stayed true to its word with the beefed-
up drilling programme geared towards delivering another
resource upgrade at Pickle Crow in the first half of 2021.
Therefore, Auteco has two diamond drill rigs operating at
Pickle Crow, with a third mobilising this month with a total of
Ray Shorrocks
Auteco Minerals Ltd ASX:AUT Resource drilling highlights from Pickle Crow
Address: Suite 3, Level 3, 24 Outram Street, 10.7m @ 50.9 g/t from 5.49m
West Perth WA 6005 1.1m @ 150 g/t from 156.5m
Email: [email protected] 1.7m @ 55.5 g/t from 91.29m
Phone: +61 (8) 9220 9030 6.9m @ 17.7 g/t from 1.83m
1.2m @ 103.4 g/t from 20.24m
LinkedIn: Auteco Minerals Limited 1.5m @ 444.4 g/t from 22.65m
Twitter: @AutecoMinerals (includes 0.5 m @ 1,325.7 g/t from 23.65m)
Facebook: Auteco Minerals 2m @ 69.1 g/t from 23.7m
Market cap: $266 million 0.9m @ 878.7 g/t from 65.89m
Share price: 17c/share 9.9m @ 12.9 g/t from 66.2m
Key people: Ray Shorrocks (Executive Chairman), 2.6m @ 78.8 g/t from 37.08m
Sam Brooks (Executive Technical Director), Steve Parsons 1.2m @ 79.5 g/t from 104.8m
(Non-executive Director), Michael Naylor (Non-executive 2.2m @ 37.6 g/t from 117.43m
director), Nick Katris (Company Secretary),
Marcus Harden (Chief Geologist) Drilling highlights beyond the Pickle Crow
resource
Projects:
0.6m @ 99.4 g/t from 167.4m
Pickle Crow gold project (including 0.3m @ 181 g/t from 167.4m)
Uchi sub province of Ontario, Canada 1.6m @ 25.8 g/t from 95m
Limestone Well vanadium project (including 0.6m @ 65.2 g/t from 95.7m)
Murchison, Western Australia 1.6m @ 19.6 g/t from 372m
3m @ 7.37 g/t from 261m
Page 62 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
19 holes for 4,400m completed at the time of print. Pure Gold Mining Inc’s Madsen (2.6 moz @ 8.9 g/t) and First
Historical production of 1.5 moz @ 16 g/t gold gives Pickle Mining Gold Corp’s Springpole project (4.67 moz @ 1.04 g/t
Crow the status of being one of Canada’s highest grade indicated).
mines and the fast-pace nature in which Auteco has It is little wonder to Auteco that with a steely focus at Pickle
delivered a maiden resource (June 2020) and followed Crow, it is unearthing high-grade mineralisation in a number
up with a 20% increase in resources since suggests the of areas up to 250m outside the 1 moz gold resource
company has a grip on the geology. recently confirmed.
“Our results speak to the quality of the asset in addition to Such targets and other walk-up opportunities will be drilled
its size. This reconnaissance drilling in the Core Mine Trend this year as step-out drilling at Pickle Crow continued at the
has resulted in what looks like multiple, near surface, high- time of print.
grade early stage discoveries within a few hundred metres With winter approaching, Shorrocks said that would do little
of the current mine infrastructure,” Shorrocks said. to slow Auteco’s momentum.
“A lot of people don’t realise that our focus has been on “They [drillers] prefer winter because the ground is much
getting geological confidence around that headframe and more solid when it’s frozen over. Sometimes you can get
the old mine infrastructure and then slowly stepping out 2m of snow out there, but they are used to those conditions
from there. We have brownfields opportunities outside of and put the graders to good use,” Shorrocks said.
this area and then the regional play outside that, which is a “Even COVID hasn’t had much of an impact on us, of
pretty exciting time for us.” course it has slowed a few things down like getting crews
Results from drilling within the Core Mine Trend have in from different areas and there are a lot more checks and
returned abundant visible gold and assays grading up to balances to achieve but our 24-man camp has adapted well
137.3 g/t, giving Auteco the belief that its geological ideas to all the protocols that need to be adhered to.”
and open-minded approach to evaluating old datasets
through the lens of traditional geological principles is the
playbook for Pickle Crow.
The latest resource update at Pickle Crow included drilling
done by Auteco plus historical information collated by the
company.
Pickle Crow has been bereft of any modern-day exploration
since it closed in 1966 even though there has been great
successes in the district by the likes of Evolution Mining
Ltd’s Red Lake (historic production of 25 moz gold @ plus-
20 g/t), Newmont Mining Corp’s Musselwhite (5.7 moz),
Auteco is earning into Pickle Crow via a two-stage process where
initially it can own a 51% in the project from First Mining Gold Corp.
Auteco can take its interest to 70% through a buy-in option and
acquire a further 10% in the future, subject to conditions.
autecominerals.com.au
DIGGeRs & DeALeRs
Comprehensive Supply Chain Solutions
Talga takes preferred path
fter nearly a decade of searching for the uct. Talnode-C has been developed by Talga declared it publicly without having done their
A best market access for its unique high- and partners for fast charge, high power, high due diligence on us and the project and there
grade graphite, Talga Resources Ltd appears capacity and low temperature performance in is a number of similar sized companies work-
to have finally settled on its entry point and it is lithium-ion batteries. ing with us who have tested and proven our
closer than most resources companies would Most battery minerals-focused mining com- material.”
be willing to go. panies have chosen to avoid the complexity of Talga has received expressions of interest
A detailed feasibility study released in Au- downstream processing, but Thompson be- exceeding 300% of Vittangi’s planned capac-
gust highlighted Talga’s ability to produce a lieves Talga’s strategy is being recognised as ity incorporating engagements with nearly 20
graphite anode product – a key ingredient a sensible decision. planned European battery manufacturers and
in lithium-ion batteries used to charge EVs – “Our vertical integration is now being val- six global automotive OEMs.
from its Vittangi graphite project in northern ued,” he said. “We own and control whole Car manufacturers themselves are still ne-
Sweden. It represented an ambitious leap from supply chain before taking this path we didn’t. gotiating the labyrinthine EV battery supply
junior explorer to integrated battery chemical Analysts and others investigating the battery chain to find the most reliable, secure route
producer but 18 months on, managing direc- supply chain are reviewing our strategy posi- from raw materials to finished products. Talga’s
tor Mark Thompson is increasingly confident tively.” strategy is to provide them with some clarity
investors and customers are convinced by the The evidence of investor support is plain and security in at least one part of the chain.
company’s strategy and the wider battery min- to see. Talga shares are up nearly 50% year- “They are all focused on Tier 1 assets which
erals narrative. on-year and a recent $10 million placement can make anode material,” Thompson said.
“There is a global investment shift towards brought in new institutional and sophisticated “They don’t look at the corporate side of Talga,
real tangible assets,” Thompson told Paydirt. investors. they are all asset focused, particularly around
“Natural resources have definitely bottomed “The recent capital raising was oversub- jurisdiction and we couldn’t be in a better place
out after 10 years of downward trend following scribed within two hours. We had to do a se- than Northern Europe.”
the GFC. For the first time in a long time we vere cut-back on requests and we are still trad- The company’s extensive piloting testwork
are seeing lots of interest in overall sentiment ing at a premium. Bigger players are starting to has given prospective customers physical evi-
towards natural resources, towards Talga and pay attention.” dence of Vittangi’s quality.
also towards EVs.” Thompson is also adamant graphite’s time “It is a working model, not just a feasibility
Talga’s story is increasingly wedded to the in the battery minerals sun is still to come. study on paper,” Thompson said. “We have
EV thematic and Thompson is comfortable Lithium, cobalt and nickel have all enjoyed bull had trial mining and samples through piloting,
with the direction it is heading. While sales for runs on the back of projected demand from EV customers have then tested the material; we
all car types have fallen during the global pan- markets, but graphite seemingly missed out. don’t feel it is an issue.”
demic, EV models have proven most resilient, “All the other commodities were valued Vittangi’s location in one of the most stable
increasing their share in many major markets. prior to the boom except graphite,” he said. and mining-friendly jurisdictions in the world is
The pandemic and associated lockdown “Institutions are now convinced by the overall also an advantage.
have also brought supply chain security into EV story but need exposure and we offer them “Permitting times are out of our control but
sharp relief for car manufacturers, investors that opportunity,” he said. “We have more than they more about dealing with timeframes,
and governments. Talga’s decision to produce 5,000 shareholders now, and they are well-ed- there is no risk as such. We virtually have ap-
graphite anode – a highly refined and coated ucated, fans of EV technology and our vision proval for the first 25,000 tpa stage mining
form of graphite used in lithium-ion batteries – for cleaner, greener production.” stage anyway.
instead of a straight graphite concentrate fits Talga will use proceeds from the placement “All the processing approvals are under-
well with supply chain concerns. to add greater certainty to the mining side of way and the timeline for that suits the timeline
Talga’s plan is for Vittangi is to establish a Vittangi, refine the feasibility study for financing of customers with everything scheduled for
conventional open pit and concentrator op- and scale up production of Talnode-C sam- 2023.”
eration at Vittangi. Concentrate will then be ples for customers. With investor support and customer interest
trucked to a coast anode refinery where Talga The last part will be vital as Talga looks locked in and jurisdictional risk at a minimum,
will produce 19,000 tpa of its Talnode-C prod- to take advantage of its growing reputation Thompson is confident Talga will attain pro-
among its potential ducer status in the next three years.
customer base. “There is every reason to be confident in the
“We couldn’t have project going ahead,” he said.
bigger players test- It has been a winding road for Talga as it test-
ing our material, it ed the suitability of Vittangi’s unique orebody
is going through for numerous markets. However, Thompson
larger automotive appears more confident than ever in finding
OEM qualification the end destination.
processes now,” “I’m very gratified over what has been
Thompson said. achieved, particularly in the last six months,”
“We have a part- he said. “The investments we have made have
nership with Mitsui, paid off; now it is all about execution.”
which wouldn’t have
– Dominic Piper
Talga has identified a direct path into the battery anode market,
handing it vertically integrated opportunities
Page 64 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
ASX : VMS
A successful explora on company
leveraged to mul ple commodi es
including a producing Iron Ore Mine, a well
advanced EV Metal (Tin) and Cri cal Minerals (Tin & Tungsten)
opportunity, a JV with Chalice for Ni-Cu-PGE and three high priority
Zn-Cu-Au drill targets along strike to the Golden Grove Mine.
145°E 146°E
Northwest Tasmania
R i l ey I ro n O re M i n e h a s Stanley N
commenced mining and dry Smithton Port Latta 0 20
screening opera ons, first Arthur River Kilometers 41°S
shipment imminent; Export through Burnie
Burnie Port
Mount Lindsay Tin-Tungsten All weather transport route
Project is a well advanced EV from mine gate to port
metal and Cri cal Minerals
opportunity; Waratah
Mount Lindsay Savage River
Chalice to earn-in on Julimar look- Tin - Tungsten Deposit
a-like in the South-West Project; Livingstone Hematite Riley Iron Ore Mine
DSO Deposit Renison Bell
Two new VMS (Volcanogenic Rosebery
M a s s i v e S u l fi d e ) Ta r g e t s Venture Tenure Zeehan
Road
discovered with EM at Vulcan Railway 146°E 42°S
Powerline
Pipeline
delivering three high priority VMS
drill targets along strike to the
world class Golden Grove Zn-Cu-Au
Mine, WA;
Efficient, highly creden aled and
dedicated management team.
www.ventureminerals.com.au
Suite 3, Level 3, 24 Outram Street, West Perth, WA, 6005
T: +61 8 6279 9428: +61 8 6500 9986
E: [email protected]
DIGGeRs & DeALeRs
Sandfire ready
for international
awakening
he clock may be ticking at the company’s prospectivity in the region because we have challenge to the issuing of the Black Butte
TDeGrussa copper operation in Western found two deposits but they’re not massive, mining licence in Montana is expected to take
Australia but Sandfire Resources NL manag- they’re not easy to find.” more than 18 months, meaning Sandfire will
ing director Karl Simich is as bullish as ever With the September 2022 date looming, necessarily park the project once it has com-
about the company’s growth prospects. Sandfire has begun investigating alternative pleted an updated feasibility study later this
Sandfire is currently staring at a September uses for the DeGrussa plant to keep opera- year. That will leave the road clear for the com-
2022 closure of DeGrussa if current reserves tions running. pany to concentrate the majority of develop-
remain static and despite the analyst com- “We want to preserve the longevity of that ment efforts on the T3 copper project in north-
munity beginning to question what the future asset,” Simich said. “Before Christmas we ex- ern Botswana.
holds, Simich has a very clear view of where pect to announce a gold resource for the High- Acquired through the merger with ASX-
the company is headed. way project, Sandfire’s original project in the listed junior Mod Resources last year, T3’s
“We have $300 million in treasury in the Doolgunna district, as well as a gold resource economics have already been proven, a 2019
next two years, we will add after-tax cash of for the DeGrussa tailings. DFS pointing to an 11-year, 3 mtpa operation
$600 million and we have close to $100 mil- “A combination of fresh resources at High- producing 28,000 tpa copper-in-concentrate
lion in liquid investments. So, there is nearly $1 way blended with tailings means we could use for $250 million capital outlay.
billion in the business, there is no debt and we the existing front-end of the DeGrussa plant, On acquisition, Sandfire immediately be-
have a good team ready,” Simich told Paydirt. add a new CIL circuit and create an opportu- gan optimisation work aimed at identifying the
“Our value at cash backing is $5.62/share nity to add to the mine life. It could be 4-6 years optimal size for the operation given the wider
versus a price of around $4.80 currently. The of 40-55,000 ozpa gold production. That is a regional potential and its more robust balance
clear implication is that analysts are not valu- not insignificant quantity of gold and it will give sheet in comparison to Mod.
ing our growth projects but there’s no point us a window to continue copper exploration. “The T3 Hub feasibility study is going well
complaining. We need to put the rubber on While the company will continue to explore and once that is released towards the end of
the road with our development plans and then its 8,000sq km land package in the Bryah Ba- the year people will come to the conclusion
start educating people and that’s what will oc- sin – it has set a budget of $24 million for FY21 that we have a 50-60,000 tpa scenario, a plus-
cur from the end of the year.” – its future is no longer entirely wedded to the 10-year mine life and long legs because the
The irony is Sandfire is enjoying its strong- cornerstone asset. exploration opportunity is fantastic.”
est ever period at DeGrussa. The asset in Instead, the company is preparing for what T3 already boasts a resource of 60.2mt @
Western Australia’s Doolgunna region pro- Simich describes as “the next chapter of the 0.98% copper and 13.9 g/t silver resource but
duced a record 72,238t copper and 42,263oz Sandfire story” – the company’s first interna- continued exploration success at the nearby
gold at C1 cash costs of $US0.72/lb in FY20, tional development. In the last five years, the A4 prospect – just 8km west of T3 – will see
delivering group EBITDA of $315.3 million and company has acquired advanced explora- that number added to later this year.
NPAT of $74.1 million for the company. Guid- tion projects in the US state of Montana and “We will have a resource for A4 before the
ance is similar for FY21. Southern African nation of Botswana and end of the year,” Simich said. “It is modest
“We have had this extraordinary productive is now preparing to release its development tonnes, but the grade is 20-25% above T3.
and lucrative operation and with the Monty plans for both assets. So, it will be a bit like the Monty fairy dust we
mine coming on it has been getting better and “We see it as now getting back into the have sprinkled on DeGrussa; it will change the
better. However, the reality is that mines are hard work of project development,” Simich ex- economics.”
finite, and we probably haven’t been as suc- plained. “That is the critical part for us, navigat- Exploration results in the June quarter re-
cessful as we’d have liked to have been with ing a way through COVID to the next mine.” turned the best intersection at A4 so far – 18m
the drill bit. That doesn’t mean there is no The path is taking shape. A recent legal @ 5.2% copper and 124 g/t silver from 77m.
Page 66 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Comprehensive Supply Chain Solutions
In contrast to the deeper sediment-hosted been predominately exploration and desktop will allow us to transition into a mid-tier base
T3 deposit, A4 is a shallow higher-grade vein- work that doesn’t require on-ground activity, metals company. Our internal marker is more
hosted deposit. The success at A4 has led the things haven’t progressed as speedily was we than 100,000 tpa copper within three years
Sandfire exploration team returned to airborne would’ve expected.” and 150,000 tpa in five years. But we need
EM data to identify other near-surface targets, Drill rigs returned to site in June with A4 to prove we can build T3 and expand from
including the A1 Dome prospect, 20km along resource drilling to be completed as well as 30,000 tpa to 50,000 tpa copper to achieve
strike from A4. earlier-stage drilling on A1 and the T20 project, that.”
While DeGrussa barely missed a beat dur- 100km west of T3. The company now controls Taking T3 and Black Butte into develop-
ing the fleeting restrictions in WA, Sandfire’s 18,000sq km of prospective ground in Bot- ment will also clear the company to search for
progress in Botswana has been affected by swana and Namibia, giving it confidence it can new opportunities. Simich said the team was
COVID lockdown measures. expand from any initial operation at T3. always looking at M&A opportunities but was
“It did change things because we had to Simich said an investment decision on T3 finding it difficult to find assets which were a
adapt but the operations were not affected,” was expected by the end of 2020. It is obvious good fit.
Simich said. “The development projects were he sees it as Sandfire returning to what it does “Once we have a decision-to-mine on T3
though. We’ve had no one in Botswana for six best – building mines. a very capable group we will then be in execution mode which is an
“ The T3 Hub feasibility study around us,” he said. I’ve are canvassing opportunities now but I have
“We’re getting back to work and we’ve built
opportunity for us fill the pipeline for the next
months and while the work in that period has
five-year development window,” he said. “We
been involved in build-
to say there are not many. We could go ag-
ing 18 mines and we
gressive on something but that usually means
is going well and once that
one set of shareholders wins and the other
have got people like
is released towards the end of
Julian Hanna, Ian Kerr
and Rob Scargill directly
the scheme of arrangement we did with Mod.
the year people will come to the
involved. These are all loses. We would much rather something like
“We are still receptive to mature projects,
conclusion that we have a 50-60,000 high-quality executives PFS-level projects or even scoping study level.
tpa scenario, a plus-10-year mine in their own right. We can be more patient this time around be-
“T3 places us at the cause we will have T3 and Black Butte in the
life and long legs because the beginning of a multidec- development plan.”
exploration opportunity is fantastic. ade opportunity which – Dominic Piper
Delivering the full turnkey
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ONE NETWORK. ©2020 Caterpillar ® . All rights reserved. CAT ® ,
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used without permission.
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 67
A world first:
Changing materials
for the better
What is PureGRAPH ?
®
First Graphene offers a range of high-quality
graphene nanoplatelet products under the
PureGRAPH® brand name. These products are
characterised by their large platelet size, high aspect It might have been perceived as a bold statement at the
ratio, low defect levels and are free of metallic
contaminants. time, but First Graphene Ltd’s early crow as the “world’s
This combination of features is possible due to leading graphene company” is holding court.
First Graphene’s game-changing manufacturing
processes. Strict controls ensure an optimised Despite some of the well-documented challenges brought about by the global
product with consistent characteristics and COVID-19 pandemic, First Graphene has continued to push the boundaries
repeatable results in every batch. in its bid to be recognised as the world’s leading supplier of high-performing
graphene products.
PureGRAPH® powders are easy to use and disperse Almost three years of hard work to establish that reputation culminated in June
readily in a wide range of solvents, polymer resins, with the company being accepted as an associate member of the prestigious EU
elastomers and water-based formulations and Graphene Flagship which comprises 170 research groups across 21 countries
each product shipment is quality assured with a and has an estimated budget of €1 billion.
certificate of analysis. First Graphene, through its UK subsidiary, is the first Australian entity to be
Three PureGRAPH® admitted to the consortium which is overseen by the Chalmers University of
graphene powders are Technology in Gothenburg, Sweden.
available in average In the past year First Graphene took giant strides towards confirming its
platelet sizes of 20µm, position as the world’s largest manufacturer of graphene products, including
10µm and 5µm with development of the trademarked PureGRAPH® graphene powders which are
tightly controlled platelet manufactured exclusively out of its 100 tpa commercial facility in the industrial
geometries. suburb of Henderson.
With those manufacturing capabilities now established, the company is looking
to further spread its wings and promote its brand within the broader industry,
as First Graphene managing director Craig McGuckin explains.
“Even when we deal with companies that come through our factory – and
some of the big mining companies do come through occasionally out of interest
– they’re surprised to discover that First Graphene has such an advanced
production facility located here in Perth, Australia,” McGuckin says.
“We branded ourselves the world’s leading graphene company, it was quite
a bold statement we made some years ago, but we’ve certainly worked our
firstgraphene.net way into that mantle in terms of being able to manufacture large quantities
of consistent quality graphene at a price that the industry can accommodate.
Graphene is the enabler to make most things better.
“Now we’re really wanting to step up and let the industry know we exist. We’re
here and available and open for business.”
Page 68 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Why graphene?
First isolated and characterised by professors Andre Geim
and Konstantin Novoselov from the University of Manchester in
2004, graphene is a tightly packed layer of carbon atoms bonded
together in a hexagonal honeycomb lattice.
At just one atom in thickness, graphene is the thinnest material
known. It is 200 times stronger than steel, has an electrical
conductivity one million times that of copper and outperforms
diamond in terms of its thermal conductivity.
Graphene has a surface area even larger than that of the activated
carbon used to coat the plates of traditional supercapacitors,
enabling better electrostatic charge storage. Graphene-based
supercapacitors can store almost as much energy as lithium-ion
batteries, charge and discharge in seconds and maintain these
properties through tens of thousands of charging cycles.
In addition, graphene-based supercapacitors are lighter, more
deformable and can be stronger than their counterparts based on
activated carbon.
Promotion of the company’s strategy is just one aspect of what
is shaping as a busy year ahead for First Graphene with the team
also putting a priority on bedding down a number of promising
sales contracts.
In the last six months the company has signed separate supply
agreements with planarTECH (Holdings) Ltd and Aquatic Leisure “We’ve concentrated on the large potential usage areas like the
Technologies for 1 mtpa and 2.5 mtpa of PureGRAPH® powders, polyurethanes, the thermoplastics, the glass composites, rubbers,
respectively. concrete where you can get multiple tonnage contracts because that’s
Both contracts came on the back of First Graphene announcing it had entered what will ultimately turn you into a business that makes money.
into a landmark partnership with prolific work boot brand Steel Blue last “So, yes, there has been some fatigue, but you have to remember that
November. First Graphene has only seriously been making graphene for 2.5 years in
“COVID has naturally delayed some of these sales programmes, however, Henderson and probably even less than that in tonnage quantities.”
sales agreements have been signed and will eventuate in the latter end of this First Graphene remains a Tier 1 partner of the Graphene Engineering &
year,” McGuckin says. Innovation Centre in Manchester, UK, where most of the company’s high-
“Steel Blue will be bringing out a PureGRAPH® branded boot later in the year, end science and R&D is carried out.
something that will be a huge step change in safety boot wear. Probably the McGuckin believes it is only be a matter of time before the company’s
first one will introduce our graphene in the scuff cap and then it will work its product offering becomes the first-choice selection for the diverse range
way into the sole and into the metatarsal guard and then eventually maybe of industries it can service.
into a composite cap to replace the steel cap which we think will lighten the “We’ve put ourselves up there with probably three other companies in the
boot up by around 250g.” world for graphene manufacture and that’s something we should be very
First Graphene continues to evaluate opportunities to optimise the use of proud of, especially in this climate where everyone is talking about the
graphene in a range of composites, elastomers and rubbers and, in more importance of local manufacture and supporting manufacture which is
recent times, concrete. Australian made,” he says.
The company confirmed via a technical paper in August that graphene “It’s also worth pointing out that we don’t see the Henderson facility as
additives improve strength, reduce materials usage and potentially increase being the end point; we strongly believe this is just the starting point
longevity of some cement grouts and concrete. because we have proof of concept of large scale production here at
Last month the company also reported that successful laboratory and Henderson that we believe will lead into future factories than can do
commercial-scale testing supported the integration of PureGRAPH® in the thousands of tonnes.
rubber compounds of mining screen media and wear-liner materials. Futures “We don’t see any reason why a factory of the future won’t have the
testing will look at improved dispersion and fire-retardancy aspects. capacity to do 1,000 tpa or even 10,000 tpa.”
First Graphene’s achievements come at a time when graphene is anything
but the flavour of the month. While McGuckin acknowledged that interest in
the sector has waned somewhat, he highlighted that there was still plenty of
support from investors who have closely followed graphene’s development in
recent years. First Graphene Ltd (ASX: FGR)
“Considering it was only first isolated in 2004 and there’s been close to €1 1 Sepia Close, Henderson WA 6166 +61 1300 660 448
billion spent in the UK and EU with the graphene flagship, to say there’s been a
fatigue coming into the marketplace would be fair, but that’s not unusual with Web: www.firstgraphene.net Email: [email protected]
a new product,” McGuckin says. Twitter: @First_Graphene
“It’s important to remember that there are many types of graphene and one Key people: Warwick Grigor (non-executive chairman), Craig
type of graphene won’t do everything, so you have to be mindful of that. What McGuckin (managing director), Peter Youd (executive director, chief
we’ve been concentrating on is areas of large usage. There’s no point just financial officer & company secretary), Dr Andy Goodwin (senior
concentrating on sensors, for instance, because 1kg will do 500,000 sensors scientific advisor & non-executive director), Paul Ladislaus (chief
and there’s no business model in that. technology officer), Neil Armstrong (senior process manager)
DIGGeRs & DeALeRs
Spotlight pivots towards Saturn
The Saturn team, anthropologist and
senior Traditional Owners of Apollo Hill
undertook a heritage survey in August
erhaps drawing inspiration from the un- “We’ve got Dundee Corporation on the been reluctantly sidelined by previous
Pheralded planet which bears its name, register for 10%, 1832 Bank of Nova Sco- owners – Peel and Battle Mountain Aus-
Saturn Metals Ltd has quietly gone about tia have steadily accreted their position tralia – due to significant discoveries being
its business this year without a great deal and the most recent significant notice was made by those companies in New South
of fanfare. Sprott who are well known for getting be- Wales and Queensland respectively.
While most of the headlines have fa- hind gold plays. There’s a few others who Bamborough said the wider potential for
voured the likes of Chalice Gold Mines sit behind that 5% level but in a substantial Apollo Hill first started emerging in March
Ltd, De Grey Mining Ltd and Musgrave way. 2019 when exploration manager Kathryn
Minerals Ltd for the significant discover- “It always fills me with confidence when Cutler put down a hole under an old air-
ies each has made amid a global health we get people ringing up and asking the core collar and struck 13m @ 5 g/t gold
and financial crisis, Saturn has continued right questions and giving us the opportu- from 74m (including 4m @ 9.8 g/t), provid-
to churn out one impressive result after nity to answer them technically and explain ing confirmation of a new high-grade lode.
another from its Apollo Hill gold project, the details. And when those people start Fast-forward through more than 12
60km south-east of Leonora. buying up after those answers it’s very months of what he described as a “heck
The latest results include shallow inter- pleasing.” of a lot of drilling” and Bamborough is
sections such as 6m @ 5.17 g/t gold from Saturn started the year on a positive supremely confident “the game has
47m, 3m @ 3.68 g/t from 89m and 7m @ note with two of the best intersections – changed” for Saturn in terms of what it had
1.21 g/t from 114m in the hanging-wall po- 12m @ 9.98 g/t from 269m and 8m @ 12.9 originally conceived for the project.
sition, as well as multiple high-grade hits g/t from 126m – ever drilled in Apollo Hill’s “It took us a while to feel through and
in the main lode, including 7m @ 5.55 g/t history. Those two hits alone essentially find the plunging shoots and all that – and
from 286m (including 3m @ 12.1 g/t from saw the company’s stock double through Apollo Hill can be quite unforgiving like
287m), 19m @ 1.06 g/t from 230m and late January and early February before that – but we’ve always had the belief in a
24m @ 1.02 g/t from 280m. retreating just as quickly when financial much bigger system,” he said.
All of those results sit outside Apollo markets closed ranks in March due to the “What is really evident to us now is that
Hill’s existing resource (24.5mt @ 1 g/t outbreak of the coronavirus. what was once considered the hanging-
gold for 781,000oz) which is poised for an However, as the gold price grew strong- wall, we now think it’s one big mineralised
upgrade this quarter. er from April onwards, so too did the in- corridor and we’re actually seeing quite a
Since listing in early 2018 as a spin-out terest in Saturn. At the time of print, the substantial pattern starting to develop in
from Peel Mining Ltd, Saturn has arguably company’s share price was almost triple there. It’s very under-drilled compared to
been the industry’s quiet achiever. With the mark it had pulled back to during the the main lode.
recent and ongoing exploration success initial stages of the pandemic. “The width there is now around 600m
all but certain to convert into a plus-1 moz “If you take the recent gold price spike and we’re stepping out along strike. We’re
inventory at Apollo Hill, the question now is out of it, we’ve had this very nice, steady, seeing the same kind of intersections com-
just how much longer the company contin- accretive growth off the back of the work ing together and I think it’s earmarking a
ues to fly under the radar. we’re doing to build up that recognition in much bigger opportunity in one single sim-
For Saturn managing director Ian Bam- the deposit,” Bamborough said. ple spot. And obviously there’s been much
borough, the arrival of some-big name “For me, persistence and the ability to better grades out here than in the footwall,
institutions on the company’s register in keep pushing on pays in exploration. Eve- which is very exciting.”
recent times suggests the spotlight is now ry time we have a push there’s always a Despite the strong likelihood of a size-
hovering near the Perth-based explorer. nice little step and hopefully you can see able resource being defined at Apollo Hill,
“I think at the moment we’re about 38% that reflected in both our share price and Bamborough and his team are not looking
institutional…maybe 15 months ago we market cap growth.” far beyond a current exploration campaign
didn’t have a single institution on the reg- There is a clear glint of excitement in which will include 20,000m of RC drilling
ister, whereas now we have a number Bamborough’s eyes when he starts dis- targeting high-grade trends and 4,000m of
of large North American technical, long cussing the big picture potential of Apollo aircore drilling across regional and camp-
funds who have done their homework and Hill, which is now benefitting from being scale opportunities.
come in to support us,” Bamborough told the single focus of a company for the first Bamborough said while the temptation
Paydirt. time in two decades. The project has twice was there to start moving into technical
Page 70 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Comprehensive Supply Chain Solutions
at a much-changed and very interesting
picture by April/May next year…I can
see it now, but we’ve got to do the work
and the drilling first.”
Saturn also expects to quietly chip
away at the West Wyalong JV in NSW
after entering into an agreement with
the private vendors of the project earlier
this year to earn up to 85% of a 91sq km
brownfields tenement by spending $1.9
million on exploration over four years.
Despite its proximity to the Cowal and
Cadia mines, no gold has been extract-
ed from the project since 1915. Historical
records suggest about 439,000oz grad-
ing 36 g/t was produced between 1894
Ian Bamborough and the start of World War I when many
of the workforce was called into battle.
“Since then, this thing has sat pretty
study mode, he was more concerned
with making sure the resource was much untouched and, in fact, I’d argue
sound enough to be phased into devel- there is not a single drill hole around that
opment. main structure in the last 100 years,”
“It’s economies of scale that are go- Bamborough said.
ing to make this pop, so the foreseeable “Think of it as the sleeper agent in the
future will be about size and expansion,” company, but I’m not going to leave it
he said. asleep for too long.”
“If everything goes according to plan – Michael Washbourne A resource upgrade for Apollo Hill is
– and subject to ongoing results and fi- due this quarter
nancing, of course – we could be looking
INSPIRED PEOPLE
CREATING A GLOBAL
MID-TIER GOLD
COMPANY
www.evolutionmining.com.au • ASX:EVN
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 71
DIGGeRs & DeALeRs
Building on the Gold Road model
t the time Gold Road Resources Ltd planes around at the moment either, so if
Aengaged Gold Fields Ltd as partner you miss a critical part or something, it re-
of choice to build Gruyere in the remote quires a greater level of diligence relative to
Yamarna greenstone belt of Western Aus- normal circumstances,” he said.
tralia, investors queried whether it was the While aircraft are grounded, Gruyere
right decision. itself is flying with the operation on track
Now, 12 months since commercial for 250,000-280,000oz gold production in
production was celebrated at the 50:50 2020 at AISC of $1,150-1,250oz.
Gruyere JV, Gold Road is still being ques- Conversion of the current 6.1 moz @
tioned, but in a very different way. 1.34 g/t measured-indicated resource will
“A lot of investors now see it as a busi- be the focus in 2021, as the owners look
ness model that they actually quite like. We to enhance the 11-year mine life based on
hear that because we talk about it with in- production of about 300,000 ozpa from a
vestors and aspirant developers, they come reserve base of 3.7 moz.
and talk to us and ask about the Gold Road The seamless transition into production
model. The company has created another at Gruyere has translated into Gold Road
way of developing an asset where you bring boasting a debt free balance sheet high-
a partner in and I think that is something lighted by cash and equivalents of $109 mil-
developers should be potentially consider- lion (as at June 30).
ing,” Gold Road managing director Duncan “We are working on the long-term strat- Duncan Gibbs
Gibbs told Paydirt. egy with Gold Fields on Gruyere and I think “These successes happened towards
Selecting the right partner and having a that is going to take a year or so to really the end of last year or amidst COVID before
robust orebody to work with are both boxes unpack the moving parts. We’re looking to people raised a lot of money, so sometimes
Gold Road studiously ticked off at Gruyere, see if we can expand the pit and those I think the company that runs lean and hard
while the timing of bringing the project on- kind of things. Essentially, taking a pit from has better outcomes; there are lots of loose
stream has been impeccable. 400m deep to something like 500m deep exploration dollars sloshed around,” Gibbs
“It has been as smooth as these things you have to make sure you have the studies said.
can be and the timing has been perfect,” right to eliminate any risk,” Gibbs said. “In my view, at the top of the cycle, a lot
Gibbs said. Outside the Gruyere JV, Gold Road has of money ends up getting wasted and then
“COVID will present challenges if you openly stated its own growth ambitions and the bottom of the cycle you are losing talent
were developing an operation at the mo- the wave of current exploration success in from top end drillers through to superstar
ment, not so much on the supply chain of Australia has whet Gibbs’ appetite to start geologists.
things. It is when you get into the commis- the company’s next chapter with another “For a company like Gold Road we’re
sioning type phase you find that any larger world-class greenfields find. better off running steady state through the
scale operation ends up using a handful of Successes in the ilk of De Grey Mining cycles. Just because we are making amaz-
technical expertise that has to come in from Ltd’s Hemi in the Pilbara and Chalice Gold ing cash flows out of Gruyere in the current
somewhere around the world and getting Mines Ltd at Julimar, following on from the cycle doesn’t mean we have to double our
the right people at the right time could be likes of Havieron and Winu, have given exploration budget and likewise in cutting
quite difficult. companies the ability to raise money for back,” he said.
“That creates an added level of risk in de- exploration, which will hopefully breed the A budget of $25.5 million was set for
veloping an operation in the current global next generation of mines. exploration in 2020, with the target be-
environment, not to say you shouldn’t do While the market is currently enamoured ing 1 moz gold discoveries to feed 100%
it, but you have to have a level of planning with exploration stories, Gibbs is aware of Gold Road-owned operations producing
around that. We are not flying as many the need to spend money prudently. 100,000-150,000 ozpa.
Page 72 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Comprehensive Supply Chain Solutions
major strategic focus.”
While dedicated to making the next big
discovery in the Yamarna, Gold Road has
built the capability in the last 12 months to
look at potential acquisitions with a greater
deal of interest.
“You are going to see ongoing consolida-
tion in the industry and I think that is always
how companies grow. I think in the cur-
rent market cycle some of the valuations
of some companies are getting a bit toppy,
which makes it challenging to do deals that
are of value to shareholders right now,”
Gibbs said.
“Broadly the things that we are looking at
need to be complimentary to Gruyere; long
life, low-cost, low jurisdictional risk. Inves-
Gruyere transitioned into commercial production seamlessly
tors don’t like a muddled portfolio and ide-
ally they want you to be in gold in Australia
Gilmour – 2.6mt @ 3.09 g/t gold for stage, Gibbs is steadfast in his approach to or gold in Africa rather than a bit of this and
258,000oz – in Gold Road’s Southern pro- exploration. a bit of that. We are looking for lower op-
ject area of the Yamarna is one emerging “You are only ever one drill hole away erating cost opportunities in Australia and
deposit that could present Gold Road with from a discovery,” he said. “We are out North America, Tier 1 jurisdictions. It would
a standalone opportunity or a potential feed there looking for things, but first prize for us be nice to land something sooner rather
source for Gruyere, 55km away. is making a discovery in the Yamarna belt than later, but it is a long game and takes
Hirono (18,000m of drilling completed), where we have a large ground-holding in you time to work that piece out. Often it is
Savoie and Goat-Redback (12,000m drill- what is probably the most poorly explored about right time in the market.”
ing completed) were high priority targets to greenstone belt in Australia. We hold about
receive attention this year. While still early 5,000sq km of ground there and that is our – Mark Andrews
Specialist
Drilling
Contractor
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 73
COVID-19 INFORMATION
FORUM INFORMATION
Should you be interested in visiting a
Diggers & Dealers continues to consult with
Visit diggersndealers.com.au for programme
key stakeholders on the issue of COVID-19
particular project whilst in the region, please
updates. Company presentations, if
contact the relevant company directly.
provided, will be uploaded immediately
along with analysis of all recommendations
after the presentation.
from Australian health authorities. The health
SOCIAL FUNCTIONS
and safety of delegates is our priority, with
The Clarke Energy Cocktail Party
REGISTRATION
increased cleaning and hygiene protocols
Commences after the last session on Monday
This will take place in the sponsors’ marquee
to be employed throughout the venue,
12 October in the Sponsors’ Marquee.
at the Goldfields Arts Centre (follow the
to ensure Diggers and Dealers provides a
signs). Registration times are:
COVID-safe environment.
The Kal Tire Mining Traditional Bash
Commences after the last session on Tuesday
- Sunday 11 October 1:00 pm to 5:30 pm
GENERAL ENQUIRIES
13 October in the Sponsors’ Marquee.
- Monday 12 October 7:30 am onwards
Phone: +61 8 9481 6440 or email to:
The WesTrac Gala Dinner
[email protected]
BUS TRANSPORT
Wednesday 14 October, commencing at
Buses will be at the airport to collect
FORUM VENUE
6:30 pm in the Sponsors’ Marquee. The
delegates arriving on Sunday 11 October
event to toast the mining industry and
Goldfields Arts Centre, Cheetham Street,
and Monday 12 October.
present the Media, Digger, Dealer, Best
Kalgoorlie. WEBSITE SITE VISITS
These buses will run for the duration of the Emerging Company and GJ Stokes Memorial
DIGGeRs & DeALeRs Forum between the Forum venue, socials Awards to the outstanding players in the
IT ROOM
WIFI will be provided by CorpCloud. Internet
industry. An evening of fine fare and world
and all hotel venues and privately secured
Comprehensive Supply Chain Solutions
cafe facilities including PC’s and printer executive homes booked through Kalgoorlie class entertainment proudly hosted by
available for general use. Homes. WesTrac. Dress: Jacket and Tie.
MONDAY 12 October TUESDAY 13 October WEDNESDAY 14 October
2020 PRESENTER SCHEDULE
9:00 am Forum Opening: 8:35 am Kirkland Lake Gold 8:35 am Regis Resources Ltd
Jim Walker, Forum Chairman 9:00 am Saracen Mineral Holdings Limited 9:00 am Red 5 Limited
9:15 am Opening Address: 9:25 am Mount Gibson Iron Limited
The Hon Mark McGowan BA LLB MLA 9:25 am IGO Limited
Premier; Minister for Public Sector 9:50 am St Barbara Limited 9:50 am Lynas Corporation Ltd
Management; State Development, 10:15 am Fortescue Metals Group Ltd 10:15 am Morning Tea
Jobs and Trade; Federal-State 10:40 am Morning Tea
Relations 11:10 am BHP Nickel West 10:45 am Breaker Resources NL
10:15 am Morning Tea 11:00 am SO4
11:35 am Newcrest Mining Limited
10:45 am Northern Star Resources Limited 11:15 am Calidus Resources Ltd
12:00 pm Capricorn Metals Ltd
11:10 am West African Resources Ltd 12:25 pm Pantoro Limited 11:30 am Image Resources NL
11:35 am Mincor Resources NL 11:45 am De Grey Mining Ltd
12:50 pm AngloGold Ashanti Ltd
12:00 pm Ramelius Resources Limited
1:15 pm Lunch 12:00 pm Lunch
12:25 pm Evolution Mining 2:05 pm Boss Resources Limited 12:40 pm Resolute Mining Limited
12:50 pm Lunch 2:20 pm Galena Mining Limited 1:05 pm Bellevue Gold Limited
1:40 pm Greatland Gold plc
2:35 pm Peel Mining Limited 1:30 pm WestGold Resources Limited
1:55 pm Tietto Minerals Limited(Australia)
2:50 pm Poseidon Nickel Limited 1:55 pm Western Areas Ltd
2:10 pm OreCorp Limited 3:05 pm Liontown Resources Limited
2:25 pm Mineral Commodities Ltd 2:20 pm Afternoon Tea
3:20 pm Magnetic Resources NL
2:40 pm Bardoc Gold Limited 2:40 pm Sandfire Resources
3:35 pm Afternoon Tea
2:55 pm Afternoon Tea 4:00 pm Musgrave Minerals Limited 3:05 pm Solgold plc
3:20 pm OceanaGold Corporation 4:15 pm Legend Mining Limited 3:30 pm Alkane Resources Ltd
3:45 pm Pilbara Minerals Limited 3:55 pm Roy Hill
4:30 pm Apollo Consolidated Ltd
4:10 pm Gold Road Resources 4:20 pm Closing Comments:
4:45 pm Chalice Gold Mines
4:35 pm Gold Fields Australia Pty Limited 5:00 pm NTM Gold Limited Jim Walker, Forum Chairman
5:00 pm South32 6:30 pm The WesTrac
5:30 pm The Kal Tire Mining
5:30 pm The Clarke Energy Cocktail Party Traditional Bash Gala Dinner
FORUM PRESENTERS
Integrated supply chain
solutions
Page 74 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
COVID-19 INFORMATION
FORUM INFORMATION
Should you be interested in visiting a
Diggers & Dealers continues to consult with
Visit diggersndealers.com.au for programme
key stakeholders on the issue of COVID-19
particular project whilst in the region, please
updates. Company presentations, if
contact the relevant company directly.
provided, will be uploaded immediately
along with analysis of all recommendations
after the presentation.
from Australian health authorities. The health
SOCIAL FUNCTIONS
and safety of delegates is our priority, with
The Clarke Energy Cocktail Party
REGISTRATION
increased cleaning and hygiene protocols
Commences after the last session on Monday
This will take place in the sponsors’ marquee
to be employed throughout the venue,
12 October in the Sponsors’ Marquee.
at the Goldfields Arts Centre (follow the
to ensure Diggers and Dealers provides a
signs). Registration times are:
COVID-safe environment.
The Kal Tire Mining Traditional Bash
Commences after the last session on Tuesday
- Sunday 11 October 1:00 pm to 5:30 pm
GENERAL ENQUIRIES
13 October in the Sponsors’ Marquee.
- Monday 12 October 7:30 am onwards
Phone: +61 8 9481 6440 or email to:
The WesTrac Gala Dinner
[email protected]
BUS TRANSPORT
Wednesday 14 October, commencing at
Buses will be at the airport to collect
FORUM VENUE
6:30 pm in the Sponsors’ Marquee. The
delegates arriving on Sunday 11 October
event to toast the mining industry and
Goldfields Arts Centre, Cheetham Street,
and Monday 12 October.
Kalgoorlie. WEBSITE SITE VISITS
present the Media, Digger, Dealer, Best
These buses will run for the duration of the Emerging Company and GJ Stokes Memorial
IT ROOM Forum between the Forum venue, socials Awards to the outstanding players in the
WIFI will be provided by CorpCloud. Internet and all hotel venues and privately secured industry. An evening of fine fare and world
cafe facilities including PC’s and printer executive homes booked through Kalgoorlie class entertainment proudly hosted by
available for general use. Homes. WesTrac. Dress: Jacket and Tie.
MONDAY 12 October TUESDAY 13 October WEDNESDAY 14 October
2020 PRESENTER SCHEDULE
9:00 am Forum Opening: 8:35 am Kirkland Lake Gold 8:35 am Regis Resources Ltd
Jim Walker, Forum Chairman 9:00 am Saracen Mineral Holdings Limited 9:00 am Red 5 Limited
9:15 am Opening Address: 9:25 am Mount Gibson Iron Limited
The Hon Mark McGowan BA LLB MLA 9:25 am IGO Limited
Premier; Minister for Public Sector 9:50 am St Barbara Limited 9:50 am Lynas Corporation Ltd
Management; State Development, 10:15 am Fortescue Metals Group Ltd 10:15 am Morning Tea
Jobs and Trade; Federal-State 10:40 am Morning Tea
Relations 11:10 am BHP Nickel West 10:45 am Breaker Resources NL
10:15 am Morning Tea 11:00 am SO4
11:35 am Newcrest Mining Limited
10:45 am Northern Star Resources Limited 11:15 am Calidus Resources Ltd
12:00 pm Capricorn Metals Ltd
11:10 am West African Resources Ltd 12:25 pm Pantoro Limited 11:30 am Image Resources NL
11:35 am Mincor Resources NL 11:45 am De Grey Mining Ltd
12:50 pm AngloGold Ashanti Ltd
12:00 pm Ramelius Resources Limited
1:15 pm Lunch 12:00 pm Lunch
12:25 pm Evolution Mining 2:05 pm Boss Resources Limited 12:40 pm Resolute Mining Limited
12:50 pm Lunch 2:20 pm Galena Mining Limited 1:05 pm Bellevue Gold Limited
1:40 pm Greatland Gold plc
2:35 pm Peel Mining Limited 1:30 pm WestGold Resources Limited
1:55 pm Tietto Minerals Limited(Australia)
2:50 pm Poseidon Nickel Limited 1:55 pm Western Areas Ltd
2:10 pm OreCorp Limited 3:05 pm Liontown Resources Limited
2:25 pm Mineral Commodities Ltd 2:20 pm Afternoon Tea
3:20 pm Magnetic Resources NL
2:40 pm Bardoc Gold Limited 2:40 pm Sandfire Resources MLG provides vertically • BULK HAULAGE
3:35 pm Afternoon Tea
2:55 pm Afternoon Tea 4:00 pm Musgrave Minerals Limited 3:05 pm Solgold plc • MINE SITE SERVICES
3:20 pm OceanaGold Corporation 4:15 pm Legend Mining Limited 3:30 pm Alkane Resources Ltd integrated mining services
3:45 pm Pilbara Minerals Limited 3:55 pm Roy Hill • CONTRACT CRUSHING
4:30 pm Apollo Consolidated Ltd
4:10 pm Gold Road Resources 4:20 pm Closing Comments: solutions with a focus AND SCREENING
4:45 pm Chalice Gold Mines
4:35 pm Gold Fields Australia Pty Limited 5:00 pm NTM Gold Limited Jim Walker, Forum Chairman • CONSTRUCTION MATERIAL
5:00 pm South32 6:30 pm The WesTrac on efficient, safe and SUPPLIES
5:30 pm The Kal Tire Mining
5:30 pm The Clarke Energy Cocktail Party Traditional Bash Gala Dinner • IMPORT/EXPORT MINERAL
productive outcomes CONCENTRATE LOGISTICS
FORUM PRESENTERS
08 9022 7746 10 Yindi Way
mlgoz.com.au Kalgoorlie WA 6430
12535 MLG Paydirt Ad.indd 1 7/6/18 1:43 pm
DIGGeRs & DeALeRs
Greenfields look for Regis
Which would you rather; iron ore or gold? It is a tough question for Jim Beyer to answer.
uring his tenure as Mt Gibson do that for so long,” Beyer said.
DLtd chief executive from 2011- “We spent $20 million last year
2018, Beyer experienced plenty buying all the Duketon ground
of lean years in the iron ore sector so now we control 92-93% of the
as spot prices fell from their record Duketon greenstone belt.”
highs but those days appear a dis- Just holding prospective tenure
tant memory now that prices are won’t guarantee success and Regis
touching $US120/t once again. Al- will beef up its exploration capacity
though the iron ore sector is behind at what is an exciting time for the
him, Beyer still finds himself part of company, according to Beyer.
an equally thriving industry as man- He said nothing excites explora-
aging director of gold producer Re- tion geologists more than doing
gis Resources Ltd. His approach to genuine greenfields programmes
both is the same; don’t get ahead of and then having the ability to follow
yourself. up targets with the requisite budget.
“Whichever sector you’re in, I While Regis can offer that, there
think you have to be careful not to are other opportunities on the hori-
assume that the sector is going to zon for people to look forward to.
run on $2,7000/oz gold or $US120/t “We are going underground mine
iron ore forever. It is about getting running [Rosemont: 1mt @ 4 g/t for
the balance right between being too 140,000oz gold] and hopefully an-
conservative or too optimistic, but other underground [Garden Well:
the share market will make a call 5m @ 5 g/t, 3.8m @ 5.8 g/t, 5.8m
on that as well,” Beyer told Paydirt @ 7 g/t, 16m @ 4.9 g/t and 9m @
recently. Jim Beyer 4.2 g/t] approved later this year, so
“Whatever you are doing now you there’s plenty of exciting stuff and
have to make sure that you are ready for what company in a position where you aren’t at risk Regis is one those companies starting new
is going to happen three or five years from if the gold price comes off. It is a balance of mines,” Beyer said.
now when things soften. Gold goes in cycles not letting the opportunities of a higher gold One mine that the company would like to
and a lot is going to depend on how the eco- price go by, but also being careful.” see the start of is McPhillamys in New South
nomic fallout from COVID is managed.” Beyer’s measured view of the gold sec- Wales.
In a time of uncertainty, Regis’ even-keeled tor comes as Regis embarks on a more ex- The 2 moz McPhillamys gold project has
approach to growth should go some way to pansive programme of greenfields activity in been a long-held asset in Regis’ portfolio and
appeasing shareholders who consistently Western Australia’s Duketon greenstone belt. a decision on its future is nearing.
benefit from the company’s sustained perfor- Traditionally, Regis has been focused on A PFS on McPhillamys highlighted the po-
mance. reserve replenishment year-on-year to keep tential for a 10-year play producing 192,000oz
FY2020 saw the company deliver record the hungry 10 mtpa Duketon milling capacity gold @ 1.05 g/t, while the nearby Discovery
NPAT of $200 million, EBITDA of $394 mil- satisfied and while there is still some 43mt @ Ridge project is also shaping nicely for Regis.
lion, $343 million in cash flow from opera- 1.1 g/t gold for 1.6 moz in reserve at Duketon, A maiden reserve at Discovery Ridge –
tions, while a fully franked dividend of 16c/ the company found it challenging to replace 10mt @ 1.2 g/t gold for 390,000oz resource
share plus cash and bullion (no debt) of $209 depleting reserves in FY2020. – and PFS is being targeted for release in the
million were among the highlights during a pe- Therefore, the recent acquisition of the coming year.
riod where group production totalled 352,042/ 5.8mt @ 1.6 g/t for 290,000oz Ben Hur gold In the meantime, a development applica-
oz gold at AISC $1,246/oz. deposit and wider tenement package from tion (DA) for McPhillamys has been submitted
At the time of print Regis was trading at Stone Resources Australia Ltd gives Regis by Regis to the NSW Government, with re-
$5.20/share and had a market cap of $2.64 more potential to add further life to the Duke- sponses to submissions nearing completion.
billion. ton operations. Outcomes of the DA will enable Regis to
“Our shareholders like that we pay a yield. Regis has guided gold production of incorporate updated PFS numbers in a DFS,
After taking into account franking credits, we 355,000-380,000oz at AISC of $1,230-1,300/ which Beyer hopes to get started on next
have a yield of over 4%, which is pretty unusu- oz from Duketon in FY2021, where $35 mil- year.
al in our game. Our growth potential and yield lion will be spent on exploration. “McPhillamys is a great project with rela-
are things that differentiate us,” Beyer said. A large chunk – $25 million – will be dedi- tively low AISC of $1,100/oz or thereabouts.
“We know that we have some sharehold- cated to greenfields exploration across the It is going to be great for the local economy.
ers that like that and we have some others Duketon greenstone belt of which Regis It is a good area around Cadia, Bathurst,
that like to focus solely on growth for growth’s owns nearly all available ground. Orange. Furthermore, coming out of COVID
sake and that is ok, but we need to be careful. “Regis’ history has been spending the it is a great private project. All the states are
You can do anything when gold is $2,700/oz money on resource/reserve conversion and looking at how to bring wealth back into the
but you need to make sure that in five years less on greenfields because they had a pretty economy and spending up on large projects
you are still in a position or you can put the good portfolio of resources, but you can only is one of the ways to employ lots of people
Page 76 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Comprehensive Supply Chain Solutions
quickly,” Beyer said.
“McPhillamys doesn’t involve governments
borrowing money and spending money, it is
private industry and companies that are going
to be able to create employment and tax op-
portunities and all that sort of stuff.
“I think for us it is exciting because it has
potential to really start moving forward early
next year. McPhillamys is something that we
have had on our books for a long time and
it is seemingly going to come to fruition and
add to our production in a bit over two years’
time,” he said.
A Submissions Report (SR) addressing
comments and questions raised by govern-
ment agencies and the community during
the public exhibition of the EIS in 2019 and
(SR) and Project Amendment Report (AR)
on McPhillamys were lodged with the NSW
Department of Planning, Industry and Envi-
ronment (DPIE) at the time of print, marking
another important milestone for Regis.
“Our understanding is that the DPIE as-
sessment could be completed by the end of
the year, with a possible decision by the IPC
during the first half of 2021,” Beyer said.
– Mark Andrews
Regis’ Duketon operations delivered record NPAT of $200 million in FY2020
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aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 77
Perth, Western Australia 21
November 9 - 10
21
Perth, Western Australia
November 9 - 10
The world’s pre-eminent gold exploration event
25 years of world-class discoveries from
43 countries around the globe
www.newgengold.com
For all enquiries about presenting, exhibiting or attending please contact
Mitchelle Matambo on (+61) 8 9321 0355 or email [email protected]
Jointly organised by:
Keith Yates & Associates Pty Ltd
DIGGeRs & DeALeRs
Azure adds WA ingredients
he Mexican flavours remain but Azure Min- “We had some good hits outside those re- expertise.”
T erals Ltd has decided its best to also offer in- sources which need following up. When we Ultimately, Azure took on Andover and three
vestors some homecooked dishes on its menu. drilled in February, we hit copper [6m @ 2.3% Pilbara gold projects in exchange for Creasy in-
Azure has built its reputation over the last within 30m @ 0.68% copper and 1.5m @ creasing his holding in Azure from 3% to 19%
decade as the most active ASX-listed explorer 7.03% within 18m @ 0.96% copper] and have and the creation of a JV between Azure and
in Mexico but with continued travel and opera- since identified new extensions of that zone in the Creasy Group over the four projects.
tional restrictions limiting management’s ability the database.” Andover is set to be the first subject of Az-
to get on the ground, the company has chosen While the situation in Mexico is slowly im- ure’s WA exploration push. Discovered by the
to add West Australian projects to the portfolio. proving, Azure’s decision to diversify its portfo- Creasy Group in 2018, the prospect hosts
“Mexico is still a major focus for the company; lio sparked outside interest in the future of both nickel and copper sulphide mineralisation in
we have two advanced stage assets which still Alacran and the Oposura base metals project. a mafic-ultramafic intrusive complex similar to
have core value to the company so, we are not Rovira admitted the company received ap- deposits on the Fraser Range and the recent
exiting in any way,” Azure managing director proaches about the projects but said the com- Julimar discovery near Perth. Initial RC drilling
Tony Rovira told Paydirt. “But operating there pany was not ready to make any decisions yet. returned hits of 7m @ 2.62% nickel and 0.65%
in the current COVID environment is difficult.” “Since we announced the WA acquisitions, copper, 2m @ 2.1% nickel and 0.44% copper
Mexico has been severely affected by the we have had a few North American companies and 4m @ 1.1% nickel and 0.8% copper.
pandemic. The North American country is cur- approach us about the Mexican projects,” he Rovira said the Creasy Group had carried
rently seventh on the global cases table with said. “Our response has been they remain core out extensive early-stage work to define miner-
563,705 confirmed cases and 60,800 deaths assets and there would have to be a very com- alisation at Andover.
(third behind only the US and Brazil) as of Au- pelling expression of interest for us to consider “It has gone beyond the greenfields stage, it
gust 26. divestment.” is now a question of following up on those holes
Rovira said Azure’s local exploration team While Mexico remains in lockdown, WA’s ex- with EM and drilling,” he said.
had only got back on site in July and was now ploration sector is flourishing and Azure is hop- In August, Azure began a fixed-loop EM sur-
preparing to start a drilling programme at its ing to get in on the action. vey to refine the original EM targets and plans
Alacran silver-gold project in October. In July, the company announced it had to launch a 3,000m diamond programme in
“The team has been back at Alacran since struck agreement with the Creasy Group over a November.
July, before that they were working from home portfolio of nickel and gold assets in the Pilbara. “That work will follow up the two main targets
on the database, identifying drill targets by go- “As it became obvious that operating over- [7m @ 2.6% and 4m @ 2.5%] and step out to
ing through all the geology, mapping, geochem seas would be challenging we decided we increase the extent of the mineralised zone,”
and geophysics and putting the data into 3D needed some WA assets in the portfolio, in Rovira said.
models. It was a good use of time and has cre- particular gold and nickel given their recent At the same time, the company will continue
ated good opportunity,” Rovira said. “In the last performance, to allow us to diversify both the early-stage work on the Turner River gold pro-
two months we have been field checking the geographic and commodity mix and continue ject which sits just 7km from De Grey Mining
targets we identified.” working while we evaluated what was happen- Ltd’s Mallina project where exploration success
Azure will launch a short, targeted drill pro- ing in Mexico,” Rovira said. in 2020 has turned the explorer into a $1 billion
gramme this month to test extensions to exist- “We reached out to Mark Creasy – who has company.
ing deposits at Mesa de Plata (10.46mt @ 81 been a shareholder since listing in 2003 – and “Both licences are under application and we
g/t for 27.4 moz silver) and Loma Bonita (5.4mt very early stages of discussions he identified are hoping to have them granted this year. We
@ 0.9 g/t gold and 28 g/t silver for 150,000oz Andover as suitable given my experience at will test the ground for exactly the same style
gold and 4.8 moz silver). Jubilee and Azure overall nickel exploration of targets as Mallina – intrusive-related gold,
shear-hosted and greenstones belts.”
Once the licences are granted, Azure in-
tends to undertake airborne geophysics and
reconnaissance aircore drilling to chase repeti-
tions of Mallina mineralisation.
The other two gold projects in the portfolio
– Meentheena and Coongan – are in the East
Pilbara.
“Meentheena [80km from Marble Bar] is
ground which has been held by the Creasy
Group since the mid-90s,” Rovira said. “They
have done a lot of RC and diamond drilling and
identified indications of epithermal-style silver-
gold mineralisation, which is not common in
WA. Azure has good experience from Mexico
in this style of mineralisation.”
At Coongan, near Nullagine, Creasy Group
identified alluvial, conglomerate and bedrock-
hosted gold mineralisation similar to Novo Re-
sources Corp’s nearby Beaton Creek project.
– Dominic Piper
Azure has gained access to a portfolio of nickel and gold assets in the highly
sought-after Pilbara region
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 79
nIcKeL PReVIeW
Nickel frown turned upside down
he 25th Australian Nickel Conference is certain to be like no other in the
T previous quarter of a century. Unprecedented times globally and the changing
nature of nickel demand will provide the backdrop for Australia’s nickel fraternity
to debate where the industry is heading. In a “precursor” to the conference, some
of the sector’s leaders joined together at the latest Paydirt Unlocked luncheon to
give a taste of the themes and topics to be explored at this year’s Australian Nickel
Conference, set to take place at the Pan Pacific Hotel, Perth on October 6.
REGISTER NOW!
nickel price high for 2020 loomed as an Currently, about 65% of nickel produced 17,000t nickel production in 2020.
A esteemed panel of mining sector execu- ends up in stainless steel products/con- In researching nickel market dynamics
tives gathered for the latest edition of Pay- struction material and with rising middle to justify another tilt at Ravensthorpe, the
dirt Unlocked at the Pan Pacific Hotel in classes around the world, demand is not First Quantum identified it had a “strategi-
Perth in mid-August. expected to taper in the next decade. cally significant” asset in the battery space
Preceding the lunchtime panel dis- A large portion of stainless steel is pro- on its hands.
cussion, nickel rose to $US6.73/lb, or duced from the growing, low-grade nickel However, determining the right path and
$US14,862/t, as investors feared supply pig iron (ferronickel) sector which grew out players to align with in the battery sector
issues in China on the back of escalating of the nickel price’s last major bull run. has been a more cumbersome undertaking
demand for the base metal in the country. “Nickel supply from sulphide mines and for First Quantum.
“Stockpiles of nickel ore at Chinese ports oxide laterite mines was always the only “It is a fragmented market and quite dif-
shrank to their lowest level in two years, source and could be seen to be running ficult to try and follow,” he said. “Each one
last week. Stainless steel mills in China short,” First Quantum Minerals Ltd chair- of them wants products that vary and that
have been keen to snap up any material man Philip Pascall said. “Costs [for nickel is what we are looking to understand well
as stimulus measures boost demand for pig iron] seem to be remarkably low, so it and the economics of it. I think it is true to
its products. Copper was caught up as the provides us quite tough competition. say that we would be a lot better off if we
optimism spurred investor demand in risky “Lateritic deposits have been pretty diffi- produced an upgraded product; there are
asset classes,” ANZ Research noted in late cult to bring onstream and I don’t know that strategic processes we’re looking at.”
August. anyone would do that again particularly at First Quantum’s approach to capitalising
Reports of supply constraints in China these sorts of prices; it really only started on the opportunities created by the societal
were coupled with increasingly louder calls when there was no alternative source. demand for eco-friendly, battery-powered
from Elon Musk for miners to front-up with “Pig iron can’t be used in the battery mar- transport and energy solutions is in line with
environmentally friendly nickel material for ket so there is an opportunity there in spe- peers.
his Tesla Inc. batteries. cialised areas.” IGO Ltd has assessed, but idled, produc-
Seemingly the sweet metal to be in now After mothballing operations in 2017, First tion of nickel sulphate material as part of its
and the future, companies are jostling for a Quantum rebooted the Ravensthorpe pro- strategy to be a globally relevant organisa- australiannickelconference.com
plum position in the ever-evolving and com- ject on Western Australia’s southern coast- tion in the clean energy mining space.
plex nickel market. line earlier this year and has guided 15,000-
To present, exhibit or attend as a delegate please contact Mitchelle Matambo
Page 80 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT on (+61) 8 9321 0355 or email [email protected]
6 October 2020
Pan Pacific Hotel, Perth
THE BEST NICKEL STORIES ALL IN ONE DAY
REGISTER NOW!
Sponsors and supporters to date:
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Sponsor: Sponsor: Sponsor: Sponsor:
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Major Sponsors & Exhibitors:
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To present, exhibit or attend as a delegate please contact Mitchelle Matambo
on (+61) 8 9321 0355 or email [email protected]
aUSTRaLIa’S PaYDIRT aPRIL 2020 Page 81
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 81
nIcKeL PReVIeW
“You will see car and battery manufacturers finds in established areas are also possible. stability of cost versus what we are used to do-
moving further upstream and the miner mov- Mincor’s Cassini greenfields discovery is ing in mining, which is managing commodity
ing a bit further downstream,” IGO chief oper- the first in the Kambalda region for 20 years prices that vary all the time.”
ating officer Matt Dusci predicted. and is an important cog in the company mov- As Western Areas Ltd managing direc-
“Part of our strategy is to try and look at how ing towards a final investment decision [FID] to tor for over a decade, Dan Lougher has rid-
we create value by being downstream and restart its Kambalda nickel operations. den the highs and lows synonymous with the
improving our product. We produce a concen- “Assuming we make a FID later this quarter, nickel sector.
trate and when you look at the supply chain production is a 2022 story. We hope we have Lougher reported strong ties with Western
and how disruptive and fragmented it is and our timing right,” Mincor managing director Areas’ customers in China and offered some
how much value loss happens throughout David Southam said. sage advice for parties looking to penetrate
that supply chain, there is a real opportunity “It is good news for the industry that BHP the EV and battery markets.
to optimise the commodity or chemical. It is a [Ltd] is willing to invest in nickel and Nickel “I think you’d be wise if you are European
market which didn’t exist four years ago. We West. They are talking about the growth in or American to start thinking about your own
put a lot of time into how we optimise a nickel copper, iron ore, and nickel so certainly prom- supply chain and where does that commodity
concentrate to produce a nickel sulphate and ising for the future. We have a very motivated come from,” Lougher said.
looked at how that market went. customer [BHP] who is short of quality nickel “If you get that group that breaks away from
“For us as a company to invest we need se- concentrate.” China and I think it is heading that way, the
curity of supply and that is where our explora- Exponential growth in EV sales is expected OEMs will jump on onboard. I think that will be
tion is fundamental in the next generation of in the next 15 years globally, however, car great for our market moving forward in lithium,
supply,” he said. manufacturers and battery makers are bat- cobalt and nickel. That bifurcation of Europe
Through its own portfolio or in conjunc- tling to come to terms with security of supply and North America and China and Indonesia
tion with partners on other projects, IGO has of the essential ingredients. which will have to come into play at some point
made a large commitment to exploration for “The supply chain is incredibly fragment- because they have a large nickel resource,
base metals – such as nickel and copper – rel- ed and complex taking a raw product and but I think that is going to be great for Western
evant to a clean energy future. ultimately putting it into the battery. From Areas and companies like us.
Part of IGO’s exploration strategy is geared our perspective, the car manufacturers “If you open up a new market in Europe and
towards belt-scale opportunities, including in have struggled to deal with the volatility that it looks like it is starting to take off and maybe
emerging provinces of Western Australia such they normally wouldn’t have to deal with in North America and maybe Canada…if I was
as the Paterson and Fraser Range. terms of LME nickel prices,” Dusci said. a large company I’d start looking and focusing
While IGO has the budget and repertoire “Volatility is what we all live with as min- my own materials in my own country for my
to undertake expansive exploration pro- ers but it’s something that car manufacturers own cars.”
grammes in such areas, the likes of Mincor haven’t lived with. There is a strong discon-
Resources NL are proving that greenfields nect in what they want in terms of production – Mark Andrews
Page 82 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Programme Tuesday 6 October 2020
08:00 Arrival tea, coffee and registration
Session One
08:30 Welcome: Bill Repard, Executive Chairman, Paydirt Media Pty Ltd (5)
08:35 Opening Address: Hon Bill Johnston MLA, Minister for Mines, Energy and Petroleum,
Government of Western Australia (20)
08:55 Jim Lennon, Consultant, Macquarie Group Ltd (20)
09:15 Dan Lougher, Managing Director & CEO, Western Areas Ltd (20)
09:35 Peter Bradford, Managing Director & CEO, IGO Limited (20)
09:55 David Southam, Managing Director, Mincor Resources NL (20)
10:15 Questions (5)
10:20 Morning Tea sponsored by BHP Nickel West (25)
Session Two
10:45 Mark Wilson, Managing Director, Legend Mining Ltd (20)
11:05 Scott Williamson, Managing Director, Blackstone Minerals Ltd (20)
11:25 Alex Dorsch, Managing Director, Chalice Gold Mines Ltd (20)
11:45 Tony Rovira, Managing Director, Azure Minerals Ltd (20)
12:05 Mike Jones, Managing Director, Impact Minerals (20)
12:25 Gerard Neesham, CEO, Clontarf Foundation (15)
12:40 Questions (5)
12:45 Lunch sponsored by Western Areas Ltd (45)
Session Three
13:30 David DeVries, General Manager, First Quantum Minerals Limited (20)
13:50 Peter Harold, Chief Executive Officer, Poseidon Nickel Ltd (20)
14:10 Darren Gordon, Managing Director, Centaurus Metals Ltd (20)
14:30 Aidan Platel, Managing Director, Auroch Minerals Ltd (20)
14:50 Andrew Penkethman, Managing Director, Ardea Resources Ltd (20)
15:10 John Prineas, Executive Chairman, St George Mining Ltd (20)
15:30 Questions (5)
15:35 Afternoon Tea sponsored by St George Mining Ltd (25)
Session Four
16:00 Victor Rajasooriar, Managing Director & CEO, Panoramic Resources Ltd (10)
16:10 Jack Anderson, Senior Analyst, Roskill (20)
16:30 Chris Reed, Managing Director & CEO, Neometals (20)
16:50 TBA (20)
17:10 Questions (5)
17:15 Closing Panel Discussion (convened by Dominic Piper, Paydirt Media) (45)
18:00 Closing Drinks sponsored by GR Engineering Services Ltd
Sponsors and supporters to date:
* This programme is subject to change
australiannickelconference.com
nIcKeL PReVIeW
Harold finds calmer
waters at Poseidon
eter Harold could not have timed his tran- Delays due to COVID-19 shutdowns and
Psition from miner to explorer any better. subsequent downhole EM requirements
After almost two decades at the helm of meant follow-up drilling did not occur until
Panoramic Resources Ltd, Harold stepped July, however, it proved to be worth the long
down as managing director of the embattled wait when Poseidon announced a juicy in-
miner at the end of last year and soon found tercept of 9m @ 10.46% nickel (true width
his way across town to Poseidon Nickel Ltd 4.5m), including 4.6m @ 13.8% nickel (true
where he saw an opportunity to breathe new width 2.3m), only 50m from the discovery
life into the stalled development strategy for hole.
the company’s trio of nickel assets in the The result of the second hole at Golden
Goldfields. Swan saw the company’s share price climb
What he didn’t expect to walk into was a to a five-year high of 6.3c, including a 117%
market favouring exploration success, nor increase during the month of August alone. It Poseidon non-executive director Peter
the fact his new company was on the cusp of also continued the recent good run for nickel Muccilli, managing director Peter Harold and
making an exciting new discovery at its most companies with the likes of Chalice Gold chairman Derek La Ferla are all smiles after
advanced project. Mines Ltd, Legend Mining Ltd, Galileo Min- learning of the result for the second drill hole
Harold was still settling into the managing ing Ltd and even leading producer Western at the Golden Swan discovery
director’s chair at Poseidon when the com- Areas Ltd all enjoying share price surges on
pany struck 7.6m @ 8.8% nickel (true width the back of reporting significant exploration
4.3m), including 2.1m @ 15.9% nickel (true results. Southern Terrace target. Harold said the
width 1.2m), from a total interval of 23.1m Poseidon is now mulling over options most pleasing aspect of the Golden Swan
@ 4% nickel and 0.4% copper (true width to accelerate the resource definition pro- discovery was the fact it came from an inter-
13.3m) at Golden Swan, part of the Black grammes for Golden Swan as well as re- nally generated target.
Paydirt-ad_Layout 1 7/08/20 1:37 PM Page 1
Swan project. alising the greater potential of the nearby “It was some good detective work from the
Page 84 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
geological team led by Steve Warriner with a the month. Harold is confi-
bit of assistance from the guys at Newexco,” dent the findings will sup-
Harold told Paydirt. port at least three years of
“The history up there is that EM does work bonus cash for the compa-
pretty well to find more nickel sulphides and ny to spend on other areas.
even though it was a fairly weak response, “I think if we can mon-
it was still deemed to be a priority to drill as etise that, there’s a lot of
no drilling had been done in that area before. additional cash that could
“Historically there’s been over 40,000t of flow into the business and
nickel mined out of the Silver Swan channel, would help fund some nick-
which is only 300m away, and the average el exploration and poten-
grade of that was 5.5%, so to have already tially even a restart of the
landed two really significant intersections of Black Swan/Silver Swan
good grade is a fantastic result.” project,” Harold said.
Black Swan, the most advanced of Po- “Clearly no one who is The 2 mtpa Black Swan processing plant is a key piece of
seidon’s three assets all within 300km of a shareholder in Poseidon infrastructure in Poseidon’s nickel portfolio
Kalgoorlie, is also host to the mothballed Sil- bought shares for the gold
ver Swan underground mine which Harold story and so I think people
helped discover for MPI Mines during the see that as being a great opportunity which “What’s great about our projects is two of
mid-1990s. is kind of a bit of a sequel to the nickel.” the three have actually got plants sitting on
Poseidon boasts almost 400,000t of For Harold, running an exploration-fo- top of them already and it won’t take much
contained nickel in its portfolio, including cused company with an eye on development to get started again…whereas if you find a
149,000t at Windarra and 52,000t at Lake has proven to be far less stressful than sit- new discovery, to actually turn that into cash
Johnston which also hosts a 1.5 mtpa pro- ting behind the wheel of a producer such as takes a long time because you’ve got to build
cessing plant currently on care-and-mainte- Panoramic, which has so far been unable to a plant and get it all approved,” Harold said.
nance. Both projects are expected to receive revive its Savannah operation after initially “If we decide to press the button at either
more attention over the next six months, al- placing the Kimberley-based mine on care- Black Swan or Lake Johnston, it’s probably
though Harold indicated Golden Swan was and-maintenance in 2016 due to low nickel only a 12-month refurbishment and we’re up
still likely to be the company’s priority. prices. and going again.”
A feasibility study on retreatment of historic However, he doesn’t want to stay out of – Michael Washbourne
gold tailings on the Windarra site, along with the production game for too long and he be-
those from the recently acquired Lancefield lieves Poseidon is in the box seat to soon join
project, is due to be released at the end of the exclusive WA nickel producers club.
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targeting imminent demand growth from electric vehicles.
Scoping Study + Maiden Resource from the advanced Ta
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aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 85
nIcKeL PReVIeW
Julimar fills the cup for Chalice
halice Gold Mines Ltd is a key figure in “The market is giving points for good Lougher’s comments at the recent Pay-
Ca memorable time for modern explora- exploration and discoveries. That’s been dirt Unlocked luncheon were echoed by
tion. a very long time coming and this year it fellow panellist and IGO Ltd chief operat-
Though it is only at the beginning of po- has been very good. The market is giving ing officer Matt Dusci.
tentially unlocking a brand new mineral reward to junior explorers and that is bril- “I think as an industry there has been
province at its Julimar discovery, north of liant. We have been waiting for that for a an under investment in exploration and I
Perth, leading industry figures are getting long time,” Western Areas Ltd managing agree with Dan that you are being reward-
behind Chalice and the wider junior sector. director Dan Lougher said. ed for discoveries and belt-scale success
and that has to be continuously done to
drive the supply chain,” Dusci said.
Chalice has some way to go before
Julimar can be considered as a source
of PGE-nickel-copper-cobalt material.
However, the company has successfully
brought attention to an area of Western
Australia that has remained largely un-
touched by the mining sector.
“There is potentially an entire new nickel
province there now defined – the West
Yilgarn nickel-copper-PGE province – the
entire western margin of the Yilgarn craton
is prospective for those metals,” Chalice
With cash and investments totalling about
$54 million, Chalice is well funded to test the
potential of Julimar
Feasibility Studies | Engineering and Procurement
Construction and Commissioning
Project Management | Consulting Services
Perth +61 8 6272 6000 | Brisbane +61 7 3838 8000
www.gres.com.au
Page 86 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
ODYSSEUS
A new nickel mine on the horizon to feed the
growing Electric Vehicle demand for Nickel.
westernareas.com.au
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 87
nIcKeL PReVIeW
managing director Alex Dorsch said. That Julimar is just 70km Alex Dorsch
“I don’t want to be promising that we north-east of Perth adds to the
are going to find more but I think there is uniqueness of the discovery,
a whole new wave of discoveries that are with Chalice recently receiving
going to eventuate subsequent to Julimar. positive results from early-stage
“It is certainly shaping up as some- metallurgical test work complet-
thing significant, adding PGEs to the mix ed on a range of mineralisation
as well. It is something quite unusual for styles from the wider Gonneville
Australia and really has the potential, in project.
our view, to be the first major palladium Dorsch said that results from
discovery for Australia with decent nickel- selected samples had provided
copper-cobalt-gold platinum credits as encouragement for the compa-
well,” he said. ny that the sulphide-hosted min-
Chalice sparked massive interest in Ju- eralisation at Gonneville, includ-
limar when it intersected 19m @ 2.59% ing Julimar, would be amenable
nickel, 1.04% copper, 8.37 g/t palladium to conventional flotation.
and 1.11 g/t platinum from 48m in fresh “While it is still early days in
rock from the first hole drilled at the pro- what is likely to be an extensive
ject. metallurgical test work pro-
The market reacted quickly and backed gramme, this is an encouraging
Chalice in with a $30 million capital rais- step forward in de-risking the
ing in May to continue exploring at Julimar, project and lays the founda-
while also driving the company’s explora- tion for a comprehensive pro-
tion strategy at the Pyramid Hill gold pro- gramme of metallurgy and min-
ject in Victoria. eralogical studies on the various
“We are surprised [by the market’s re- mineralisation styles at Gonnev-
action], but at the same time not really, ille, to be completed in the lead
because the market reacts to significant up to mining feasibility studies,”
nickel sulphide discoveries anywhere Dorsch said.
in the world, no matter where they are,”
Dorsch said. – Mark Andrews
Nickel
Sulphate
Outlook to 2029
3rd Edition
Nickel
Outlook
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Page 88 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
ST GEORGE MINING
is making WA’s
next big nickel
discoveries
Mt Alexander Project: High Grade Nickel Copper Sulphide Discovery
High grade nickel-copper-cobalt-PGE sulphide mineralisation
commences 30m from surface
High impact drilling campaign underway
Quality exploration team with track record of success
in discovery of gold and massive nickel sulphide deposits
Strong investor backing supports St George’s exploration model
ST GEORGE MINING LIMITED | ACN 139 308 973 aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 89
stgm.com.au
nIcKeL PReVIeW
Smart money comes for St George
hortly after raising $3.6 million in saying for the last couple of years; nickel
SJune, St George Mining Ltd execu- sulphides are rare to find and supply will
tive chairman John Prineas was asked tighten. We thank Elon Musk for towing
by Paydirt if he could remember a time that message now,” he said.
when the market was as flush with cash Prineas was overwhelmed by the re-
for explorers as it is currently. sponse to the SPP, however, consider-
“We are in a good spot at the moment, ing St George’s reputation for nickel
I haven’t seen it like this since 2007, that sulphide discovery success at Mt Alex-
was a very good time to raise money,” ander, he said the company was receiv-
Prineas said. ing due attention in the market.
“The market seems a bit smarter this While the sexy stories emerging in WA
time around and is not backing moose are Chalice Gold Mines Ltd at Julimar
pasture, investors are more intelligent and Legend Mining NL at Mawson in the
and if you have a decent project they will Fraser Range, St George has been a
back you, particularly if you are in West- mainstay in a sector that has seen many
ern Australia with gold or nickel.” companies succumb to the difficulties of
The SPP St George completed in exploring for nickel sulphide material.
June was priced at 8c/share and while BHP Nickel West was the first to find
the company was only chasing $1.6 mil- high-grade nickel sulphides at Mt Alex-
lion to satisfy its drilling ambitions at Mt ander – 3.95m @ 5.05% nickel, 1.55%
Alexander, Prineas said $9 million was copper, 0.11% cobalt and 4.44 g/t total
in the offing. PGEs from 91.4m – however that was
“We increased it to $3.6 million to long before the base metal re-emerged
make sure there was a fair allocation as a wanted commodity in its portfolio.
to existing shareholders. We are get- Mt Alexander, 120km south-south-
ting a fair bit of attention and everyone west of the nickel-rich Agnew-Wiluna
is starting to realise what we have been belt, was acquired by St George from John Prineas
Page 90 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
Nickel West in 2015. Since then the Ca- “We are continuing our aggressive ex-
thedrals, Stricklands, Investigators and ploration programme, with downhole EM
Radar nickel-copper-cobalt-PGE plays surveys underway and two diamond rigs
on E29/638 have become subject to a drilling 24/7 to test more exciting nickel-
JV between St George (75% and project copper sulphide targets,” he said.
manager) and Western Areas Ltd (25% Meanwhile, Prineas said the company
non-contributing interest until a decision would also be looking to add value for
to mine). shareholders in the next 6-12 months
Recent diamond drilling by St George through exploration success in the no-
at Mt Alexander has struck a 49.7m thick toriously challenging Paterson Province,
mafic-ultramafic unit from 503m down- WA.
hole at Investigators, while the first deep “We have some ground there next
hole at Fairbridge also hit an 11.6m thick door to where Rio [Tinto Ltd] and IGO
mafic-ultramafic unit with disseminated [Ltd] are signing up JVs with other com-
nickel-copper sulphides from 359.3m panies. I am not going to say whether we
downhole. have been approached to do a JV, but we
Drilling at Investigators and Fairbridge are very confident that we will build up
is part of St George’s 24/7 campaign at that tenement area for copper and gold
Mt Alexander. potential without a JV,” Prineas said.
“The first two deep drill holes in the “We’ve seen Rio’s success at Winu
current campaign – MAD180 at Inves- and although it wouldn’t tick the box for
tigators and MAD182 at Cathedrals – a BHP and it is different to a typical Tier
successfully intersected intrusive-style St George is drilling 24/7 at the Mt 1 majors would go for, it is still a fantas-
rocks and confirmed the presence of pro- Alexander nickel project after recently tic resource and they have only drilled a
spective geology at depth,” Prineas said. raising $3.6 million little bit of the area so there is fantastic
“The next two holes – MAD181 at In- opportunity to discover more. Winu will
vestigators and MAD183 at Fairbridge – vestigators, Prineas said the preserved grow over time, it is not a typical Tier 1 at
have provided another huge leap forward nature of the 48m thick unit significantly the moment, but it will grow.”
with thick intersections of mineralised increased the potential likelihood of the
mafic-ultramafic units” presence of larger accumulations of nick- – Mark Andrews
In reference to the intersection at In- el-copper mineralisation nearby.
Unearthing an exceptional
PGE-nickel-copper-cobalt discovery
at the Julimar Project in WA,
with an unrivalled portfolio of
district-scale projects in Australia’s
most exciting mineral provinces
at a glance
• Our strategy is to leverage existing assets to expedite commercial production
• Significant resource base and infrastructure in Western Australia including:
• Black Swan - 195kt Ni in Resources, 2Mtpa processing plant on C&M and
Golden Swan high-grade Ni discovery
• Lake Johnston - 52kt Ni in Resources,1.5Mtpa processing plant on C&M
• Windarra - 149kt Ni in Resources
• Gold Tailings - PFS recently completed on Windarra Gold Tailings project
containing 180,000oz Au, DFS underway
• Experienced nickel exploration, development and operating team
• Well funded and supportive major shareholders – Wyloo Metals and Black
Mountain Metals Julimar core specimen (JD006- G3 Zone)
Golden Swan high grade discovery
Second Golden Swan Massive Sulphide Intersection extends new discovery.
See ASX Releases 14 April, 5 August and 18 August 2020.
ASX:POS | www.poseidon-nickel.com.au WWW.CHALICEGOLD.COM ASX:CHN OTCQB:CGMLF CONNECT WITH US
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 91
nIcKeL PReVIeW
Labour squeeze hits juniors
xplorers have been appreciated for semi-massive sulphide from 219.1m- historically low levels and the commodity
Etheir discovery successes in the past 234.45m downhole were intersected. prices are at historic highs.
12 months and are now dealing with Diamond, RC and aircore drilling were “For an explorer who earns nothing and
heightened expectations. ongoing when Paydirt caught up with a mine developer who earns nothing, what
Financial backing for many juniors is the Legend’s Mark Wilson but the managing we spend has to come from the money
strongest it’s been in years, with investors director is finding it increasingly difficult to raised in the market. It is really hard to
showing willingness to support grassroots compete with bigger rivals.
and early-stage projects in times of strong “There is still a big expectation on us
commodity markets. to deliver more and our share price [15c/
However, even with a strong tailwind to share] is reflecting that; it is not moving,”
work with, there are still challenges juniors he said. “The market is still open for capital
are faced with, including the likes of Leg- raisings and if you are a miner, you can get
end Mining Ltd. it [funding].”
Legend – a company boasting a mar- With established miners awash with
ket capitalisation of $380 million and the cash and eager to find new projects, the
backing of Creasy Group (27%) and IGO exploration services sector is experiencing
Ltd (14.2%) – has elevated its status in the a squeeze.
Fraser Range on the back of some of the “We are seeing labour shortages start-
best hits in the province since the birth of ing to bite,” Wilson said. “If we want to
Nova in 2012. upscale our programmes, we are finding
Most recent results from Mawson were it very difficult to source the manpower to
from RKDD021 where a total of 24.65m support those programmes. Gold and iron
of nickel-copper sulphides were identified ore are going well and nobody has more
across two intervals: 9.3m of heavy dis- money than the iron ore guys at the mo-
seminated to net-textured sulphide from ment and they can pay people whatever
132.2m-141.5m downhole and 15.35m they want to get whatever they want as
of net-textured heavy disseminated and they have all driven their costs down to
Mark Wilson
Quality
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Drilling in progress to test high grade
Ni-Cu-PGM at Broken Hill, NSW.
Significant porphyry copper-gold target at
Apsley along trend from the Boda discovery
(Alkane Resources Ltd).
Large tenement holdings in the emerging
Ni-Cu-PGM province of SW WA and in the
Blackridge gold field QLD.
BOARD OF DIRECTORS
Peter Unsworth Non-Executive Chairman
Michael Jones Managing Director
Paul Ingram Non-Executive Director
Markus Elsasser Non-Executive Director
WHERE SERVICE & TRUTH MATTERS
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Page 92 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
cess to bring people into Vietnam, howev- batteries on track for completion this quar-
er, uncertainty on border closures and the ter.
need to compete with blue chip miners on In the meantime, the discovery success
remuneration was making things difficult. continues for Blackstone with a new zone
Williamson said the company was set to of nickel mineralisation coincident with EM
lose a couple of geologists from its stable, plates at the Viper discovery zone (VDZ),
as a result of COVID-related restrictions east of Ban Chang, announced recently.
preventing the renewal of international vi- At the time of print, Blackstone had a
sas for some of its people. market capitalisation of $112 million and
“Vietnam has strict border controls simi- share price of 43c/share and while Wil-
lar to WA, so we are trying to get people liamson sees much more upside in the
from WA into an even stricter regime over company’s valuation, overall he feels ex-
there. We’re lucky we have an expat over plorers are starting to see some apprecia-
there in the vendor, but the tightness for la- tion for their efforts.
bour… that adds to cost,” Williamson said. “We’re in a situation where finally the ex-
“I am already thinking about what ros- plorer gets valued much closer to fair value
ters, environment and what incentives we than at any time in the past 10 years,” Wil-
should put people on because we are go- liamson said.
ing into a scenario again where there are “We’re in a market where we are being
Scott Williamson
no good skilled people; there is a fight for rewarded for news flow and any news is
compete with people like that [the miners],” talent. good news. I’ve had a couple long hard
he said. “It is happening already, and it is a bit of debates with my chairman about whether
Although Blackstone Minerals Ltd is a worry. We are lucky that in Vietnam there we should put out an announcement or
making its way in the nickel sector in an- is an established mining industry so from not, as the latest announcement mightn’t
other part of the world – Vietnam – manag- a local perspective we’re OK but trying to be as good as the last one. My view is to
ing director Scott Williamson is feeling the find good expats is going to be very hard,” get the announcement out, any news is
same pain in trying to attract talent to the he said. good news and finally we are in that mar-
company as it looks towards a restart of Blackstone continues to forge ahead ket where the explorers are being valued.”
nickel operations at Ta Khoa. with a maiden resource at Ta Khoa and – Mark Andrews
Williamson told Paydirt Blackstone was scoping study on downstream processing
currently undergoing a recruitment pro- to produce nickel sulphate for lithium-ion
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 93
nIcKeL PReVIeW
with an EM conductor at Lantern East, a
structural target on the margin of a major in-
trusion and a disseminated sulphide target
Galileo breaks at Lantern South being the focal points of
the programme.
“It is a great area to be exploring for nickel
diamond duck sulphides and our first opportunity to test
the ground with core drilling,” Underwood
said ahead of the start to drilling.
maiden diamond drilling programme drilling programme that would be the best “We have approximately 500m of dia-
A was being carried out by Galileo Mining outcome for everyone. mond drilling planned at three separate
Ltd at its Fraser Range nickel targets at the “We are here for the longer term and we areas with each zone showing potential for
time of print. have already spent 18 months exploring sulphide mineralisation. This is an exciting
With the Creasy Group as its largest that ground. Every time we run a drilling part of the exploration process and we look
shareholder, Galileo is backed by people fa- programme, we have a chance of success forward to moving into the next phase of
miliar with the graft needed to be successful and we are building up our knowledge so work at this promising Fraser Range nickel
in the Fraser Range and therefore Galileo that we can ultimately make a discovery,” project.”
managing director Brad Underwood knows he said. – Mark Andrews
the expectations of the company given the Information on just how close Galileo
recent wave of discoveries being made, maybe to making that company-changing
particularly in Western Australia. discovery was expected to come to hand at
“Our largest shareholder and other the time of print, with results from diamond
shareholders have a deep knowledge of drilling which started in August expected.
exploration and understand the ground we Diamond drilling is focused on Galileo’s
are on. It is complete greenfields terrain, northern Fraser Range project, which, as
never been explored before and we have to far as addresses go in the region, places
build up our knowledge of how to explore the company in prime territory.
there to give us a better understanding,” Galileo’s northern Fraser Range project
Underwood told Paydirt recently. boasts the Lantern prospect, situated be-
“This is our first diamond drilling pro- tween Nova to the south-west and Legend
gramme, there were a number of drilling Mining Ltd’s Mawson prospect to the south-
programmes completed before Nova was east. Mark Creasy with Galileo managing
discovered. Of course, we are hoping to A total of three diamond holes have been director Brad Underwood. Creasy is
make a discovery with our first diamond planned to test holes from 200-380m deep, Galileo’s largest shareholder
Azure Minerals
is back in EXTRACTION
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your commodities from the ground,
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• Adjacent to and along strike from De Grey Mining’s and to a quality suitable for sale
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MEENTHEENA AND COONGAN GOLD PROJECTS
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• Coongan adjoins Novo Resources’ Beatons Creek
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www.strategicmet.com
+61 418 907 283
@AzureMinerals www.azureminerals.com.au
ASX: AZS
Page 94 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
2020
BATTERY
MINERALS
2 November – Pan Pacific Perth
NEW DATE ANNOUNCED
copper graphite tin cobalt lithium manganese vanadium rare earths
SPEAKER HIGHLIGHTS:
Hon. Bill Johnston MLA John Prineas Matt Dusci Joe Belladonna
Minister for Mines and Petroleum Executive Chairman Chief Operating Officer CFO and Company Secretary
Government of Western Australia St George Mining Ltd IGO Limited Western Areas Ltd
Scott Williamson Andrew Radonjic Mark Thompson
Managing Director Managing Director Managing Director
Blackstone Minerals Ltd Venture Minerals Ltd Talga Resources Ltd
Allan Mulligan Andrew Spinks Speaker TBA
Executive Director Managing Director Mayflower Capital Investments
Walkabout Resources Ltd EcoGraf Ltd
SPONSORS AND SUPPORTERS TO DATE:
www.batterymineralsconference.com
To present, exhibit or attend as a delegate please contact Namukale Nakazwe
on (+61) 8 9321 0355 or email [email protected]
nIcKeL PReVIeW
Auroch finds value in the
discovery channel
s one of the geologists behind the San- making discovery for Auroch Minerals Ltd very little to very large with a single drill re-
Ata Rita discovery for Mirabela Nickel al- in one of the world’s premier greenstone sult.
most two decades ago, Aidan Platel knows belts for nickel sulphide deposits. “It’s really helped that appetite for our
a thing or two about the value a major find And it appears the recent nickel discov- shares because we’re really only that one
can bring to shareholders of a small com- eries made by Chalice Gold Mines Ltd and drill hole away. And when you say that to
pany. Legend Mining Ltd in other parts of West- people now, they actually understand it be-
It is no surprise then that Platel has set ern Australia have only increased the Au- cause they’ve just seen it happen for two
his sights on making another company- roch managing director’s appetite to find other companies.”
something that will deliver an Auroch has been aggressively exploring
immediate boon for share- the Saints and Leinster nickel projects in
holders. the prolific Norseman-Wiluna greenstone
“Throughout history you’ve belt for the past year, but it is only recently
always seen that a good nick- that the fruits of the company’s labour have
el discovery will take a share started to become visible.
price through the roof, going Upon acquiring the projects from Minotaur
back to Poseidon in the late Exploration Ltd in August last year, Auroch’s
70s and then Sirius and Mi- immediate focus was to prove up the exist-
rabela more recently,” Platel ing resource of 1.05mt @ 2% nickel and
told Paydirt. 0.2% copper for 21,400t nickel and 1,600t
“What Chalice and Legend copper at Saints, about 65km north-west of
did was fantastic for us be- Kalgoorlie.
cause it made people realise Following a rapid-fire diamond drilling
that share prices can go from campaign at Saints, Auroch decided to step
Aidan Platel
Galileo Mining is an active
exploration company searching for
nickel in the fast developing Fraser
Range nickel belt of Western
Australia.
With a series of highly prospective
targets, the Company is completing
advanced exploration with
upcoming RC and diamond drilling
programs.
Galileo is well funded with no debt
and is backed by major
shareholders Mark Creasy and IGO.
ASX : GAL
www.galileomining.com.au
Page 96 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
back and undertake a strategic review “Valdez is a very underdone tar-
of the geological model and its overall get,” Platel said. “It just hasn’t really
approach to exploration. Former Min- been explored, there’s only a couple
cor Resources NL managing director of RAB holes prior to us and that’s
Peter Muccilli consulted to the com- about it, so a discovery here would
pany during this process. really move the dial.”
“For 4-6 months there was not Auroch is also set to drill some
much news flow to excite the market, new holes into the nearby Horn de-
but it was good hard geology that re- posit this quarter as part of a long-
ally set us up to move forward rather held plan to upgrade the existing
quickly once we did get into that posi- resource (600,000t @ 1.39% nickel
tion in March,” Platel said. Auroch is searching for the feeder channel to its Saints nickel and 0.3% copper for 8,400t nickel
“What we identified was that this project, about 65km north-west of Kalgoorlie and 1,800t copper) to JORC 2012
system hasn’t had the feeder channel reporting standards.
found yet and 49 of the 50-odd Kambalda- pany’s portfolio, according to Platel. Leinster is hosted in the same region as
style deposits known in the belt all have that “We’re only just getting started at Leinster,” the mothballed Sinclair and Waterloo nickel
feeder channel, so the probability of it being he said. mines owned by Saracen Mineral Holdings
there in such a high-grade mineralised sys- Auroch has taken the exploration template Ltd, as well as BHP Nickel West Pty Ltd’s op-
tem is very high.” for Saints across to Leinster where the team erations further to the north-west.
Auroch has since delivered a string of – led by experienced geologist Robin Cox – Asked what was on his wish-list for the next
promising results at Saints, including confir- has zeroed in on the emerging Valdez pros- 12 months, Platel said: “Ideally we find the
mation of nickeliferous massive sulphides in pect. feeder channel at Saints with a view towards
the diamond core pulled from the Saint An- Recent aircore results at Valdez struck 9m upgrading the resource and probably finish-
drews channel target. @ 0.41% nickel from 33m (including 3m @ ing off a scoping study.
Downhole EM was completed on each of 0.52% from 39m), 6m @ 0.37% from 48m “Hopefully, we’re around that 50,000t con-
the four diamond holes drilled in the most and 6m @ 0.35% from 66m. All nickel inter- tained nickel mark at Saints with a decent
recent campaign, with full results due at the sections are hosted within a high MgO ultra- discovery at Valdes or Firefly [target recently
time of print. A 1,000m RC programme test- mafic unit in a modelled basal channel which acquired from Jindalee Resources Ltd]. If we
ing the T1 and T4 channel targets was also lies above aeromagnetic anomalies and are can put two of those together, plus a new re-
under way. coincident with a strong EM conductor de- source at the Horn, I think we’ll start to see
While Saints was the “obvious starting fined by a historic surface moving-loop EM a very significant resource bank of nickel
point” for Auroch given its existing resource survey. tonnes for Auroch and I think that will really
and proximity to Kalgoorlie, it is by no means Follow-up RC drilling was being rolled out be putting us on the map.”
considered the flagship project in the com- at the time of print. – Michael Washbourne
Trainee Truck Driver, Mount Keith, WA.
It means a lot to up-and-coming generations of the Tjiwarl community to have a seat at the
table. Shania, with the backing of her community in the northern Goldields, is working on
Country and making a pathway for herself. BHP is proud to support a program that gives
generations of the Tjiwarl people employment and a source of pride for their communities.
Find out more at BHP.com/community/programs
aUSTRaLIa’S PaYDIRT OCTOBeR 2020 Page 97
oPInIon
In Africa, sustainable
businesses take the lion’s share
ome to the world’s tallest free-standing socio-economic problems, stepping in where
H mountain, the longest river, and the largest government support and infrastructure are
terrestrial animal on earth, Africa has always lacking to bridge the gap in critical civic ser-
been a land of superlatives. But today, the vices such as health care and education.
continent is attracting attention not only for its There are multiple examples across the John Welborn received the Best Workforce
ecological feats, but its exponential economic continent of individuals identifying problems and Industry Development Initiative on
growth. and developing solutions in their communi- behalf of Resolute from AAMEG chief
Of the top 20 fastest growing economies in ties – from solar panels that provide lighting at executive William Witham
2019, nine were in Africa, with South Sudan, night, to mobile payment systems allowing em-
Rwanda and Libya topping the world rankings. ployers to pay employees directly and people
In the World Bank’s 2019 Doing Business In- to send money to loved ones in rural areas. ‘Best Innovation in Corporate Social Develop-
dex, five of the 10 most improved countries This isn’t just an ethical decision or a per- ment’ prize for its Balama Professional Training
were in Africa, and one-third of all reforms re- formative display of social cohesion, but an Centre project in Cabo Delgado, Mozambique.
corded globally were in sub-Saharan Africa. ongoing and essential part of their business The project mobilised and trained a workforce
What’s more, Africa is home to the 10 fast- strategy. And with mounting evidence showing of close to 1,000 employees in Mozambique,
est growing cities in the world and, with 60% of that a commitment to sustainability attracts in- of which 55% reside in the local host communi-
the population under the age of 25, it’s teeming vestors, drives innovation, builds risk manage- ties, 96% are Mozambican nationals, and over
with young people who are increasingly well- ment, increases customer loyalty and attracts 20% female.
educated and eager to join the workforce. staff, these are the businesses most likely to Resolute Mining Ltd walked away with the
It’s no surprise that business leaders have succeed, in Africa and elsewhere in the world. ‘Best Workforce and Industry Development
called Africa ‘the land of opportunity’. The con- With more than 150-listed Australian com- Initiative’ for its Malian Talent Development
tinent is creating an entirely new development panies operating in Africa, a majority of which Programme. Situated in southern Mali, it gives
path, harnessing the potential of its resources are involved in the minerals and energy sec- local senior school students the chance to
and people. But while its opportunities are vast, tor, the golden age of Australia-Africa relations participate in a three-year apprenticeship pro-
its challenges remain persistent. And for many has begun. Indeed, Australia is now one of the gram, with the top student every year receiving
international investors, Africa still poses a risk. biggest international investors on the continent, a bursary to study at an Australian university.
Around 640 million people in Africa live with- doubling its investment to more than $40 bil- Taking place on the November 4 as part of
out electricity and more than 416 million live in lion over the past decade. As the saying goes, Africa Down Under in Perth, the 2020 Awards
extreme poverty. Debt levels and debt risk are with great power comes great responsibility. will again celebrate companies that champion
rising in some countries, the availability of good As Australia’s presence in Africa continues to a transparent, equitable and mutually benefi-
jobs has not kept pace with the population, and grow, so too must its efforts to champion best cial mineral resources industry in Africa.
there are persistent gaps in infrastructure, edu- practice ESG principles. Archetypal of AAMEG’s efforts to bolster
cation, healthcare and gender equality which From the junior end of the scale right through the capacity of junior companies in Africa, this
prevent the continent from reaching its full to the multinationals, there certainly is some year’s event will introduce a new category – the
growth and innovation potential. exemplary work being done in this space. A “Emerging ESG Leader Award”, sponsored by
So, the question remains: how do busi- number of our member companies donated the Minerals Council of Australia – which ac-
nesses build meaningful scale and attract con- millions of dollars to combat the COVID-19 knowledges junior explorers or service com-
tinued investment on a continent where oppor- pandemic in West Africa, in the form of direct fi- panies (with a market capitalisation below
tunity and volatility are equally potent forces? nancial support and medical supplies provided $100 million and less than 25 employees in
The world over, a continued focus on non- to hospitals, medical clinics and communities. Australia) whose outstanding company initia-
financial risks has sparked a boom in respon- Helping the Australian mining industry to de- tive delivers sustainable and tangible benefits
sible investing. And it’s a trend that is only go- liver world-class ESG outcomes across Africa to their host communities.
ing to intensify as concerns around climate was the founding mandate of AAMEG, and it This award joins the existing categories of
change, wealth inequality, human rights and continues to be one of our central concerns as Best Innovation in Corporate Social Develop-
biodiversity are magnified through a post- the peak body for Australian companies en- ment and Best Workplace and People Devel-
pandemic lens. But in Africa, an environment gaged in developing Africa’s resource industry. opment Initiative.
with higher degrees of uncertainty, ESG is ab- To that end, we established the AAMEG AAMEG encourages nominations from min-
solutely mission critical for long-term survival. Africa Awards in 2019 to celebrate and cham- ing and service-related companies who aspire
As Bill Egbe, President of the Coca-Cola pion those companies demonstrating a deep to enable the local communities surrounding
South Africa Business Unit explains, “You have commitment to ethical mining practices and their operations to be engaged meaningfully to
a much more viable business system when community development. Their work often reach their full potential, as well as contribute
you have partners along the value chain who goes unnoticed due to the tyranny of distance, more broadly to the host country’s socio-eco-
have a vested interest in the long-term survival and also because resources companies are nomic development and sustainable growth.
of your business because they derive a living hesitant to self-promote work that falls into their Nominations for the 2020 AAMEG Africa
from your business system. That is the ultimate social licence, especially when there is a lack Awards are open till 8 October, with full ap-
formula for sustainability on the continent.” of understanding about the extreme challeng- plication details available at www.aameg.org/
And in Africa, “long-term survival” often es of operating in Africa. aameg-africa-awards/
means taking a proactive approach to solving In 2019, Syrah Resources Ltd was awarded
Page 98 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
THE PREMIER AFRICA-AUSTRALIA MINING FORUM
REGISTER NOW
www.africadownunderconference.com
ReGIonAL RoUnDUP AFRIcA
Marvel-ous opportunity in Mali
hil Hoskins christened Marvel Gold Ltd
Pwith the acquisition of interests in three
of Oklo Resources Ltd’s South Mali gold
projects.
Marvel’s landgrab now means the com-
pany occupies 799sq km of ground in Mali,
further underlining its commitment to gold
exploration in the country.
Marvel, formerly Tanzanian graphite-
focused company Graphex, holds the La-
kanfla project 6km from Sadiola in Mali’s
north-west, while its portfolio in the south
comprises Tabakorole, Yanfolila and
Kolondieba.
Marvel was set to start drilling at Lakan-
fla (3,500m) and announce a resource at
Tabakorole last month.
Importantly for Marvel, the recent deal
with Oklo added 275sq km of ground ad-
joining its Tabakorole project.
“We will have our maiden JORC re-
source for Tabakorole in late September,”
a confident Hoskins, Marvel’s managing
director, told Paydirt.
“There was a historical resource from
2007 of about 600,000oz gold and there Marvel Gold expanded its holdings in Southern Mali with a binding term sheet to acquire
has been 13,000m of drilling done since, an 80% interest in three of Oklo’s projects
including the 1,500m [14m @ 4.7 g/t from
diamond drilling and 6m @ 6.2 g/t from air-
core] we’ve done. All of that is going to be Hoskins said. “So, even in the face of chal- transaction.
incorporated into a resource in late Sep- lenging times things are getting done in Oklo has been in Mali for seven years
tember.” the mining industry, which demonstrates and will deliver a maiden resource and
The existing resource at Tabakorole to- how important mining is to the country.” scoping study activities at the Dandoko
tals 7.88mt @ 0.95 g/t gold for 241,000oz After a frustrating period in the Tanza- project in the second half of 2020.
(indicated) and 10.55mt @ 1.05 g/t for nian mining sector with Graphex at the Oklo has $20 million to complete its ac-
353,000oz (inferred). Chilalo graphite project, shareholders of tivities and has Lycopodium onboard car-
“In addition to the resource at Taba- Marvel are due some respite from political rying out early-stage scoping studies at
korole, we are also getting on with drill- upheavals and Hoskins is confident Mali is Dandoko, west Mali.
ing at Karst [at Lakanfla] which was one the right place for the company to deliver. “We certainly hope that is seen as posi-
of the first projects we bought that had Furthermore, former Centamin plc chief tive to the outside world that we are deal-
300,000m of drilling on it. Following that executive Andrew Pardey (non-executive ing with Oklo. Oklo could have dealt with
we will have met test work coming out in director) and noted geologist Chris van a number of parties on these projects but
Q4 and with these new projects we will be Wijk (executive director and exploration chose to work with us and come on the
consolidating the data and coming up with manager) provide Marvel with the requisite register to back us to further these pro-
new targets to get on with,” Hoskins said. African experience for success. jects. That is a vote of confidence in our
Despite political turmoil in Mali, which “We did look at projects in Australia and team and exploring in Mali moving forward
saw President Ibrahim Boubacar Keita had to balance the value there in the Aus- with them as a JV partner as well,” Hoskins
overthrown in a military coup in August tralian projects where there is certainly a said.
amid growing security and corruption lot of competition for projects,” Hoskins A binding term sheet signed will see
concerns within the country, miners in the said. Marvel acquire an 80% interest in three of
country have not reported any operational “We felt that our management team Oklo’s projects, which were identified by
disruptions. with the addition of Andrew Pardey and Dr Madani Diallo, in south Mali.
“It was a passive coup. B2 Gold [Corp] Zimbabwean-born Chris van Wijk, who Hoskins said the influence of Diallo
and Resolute [Mining Ltd] are report- has spent time exploring in Africa, means couldn’t be underestimated given his in-
ing business as usual and from our point the team has experience managing those volvement in multi-million ounce gold dis-
of view the next cab off the rank was to risks in Africa. Our shareholders under- coveries such as Syama, Morila, Sadiola
drill out the Karst project and we are still stand where we are and the potential of and Essakane.
sending a rig out there in September to do investing in gold in West Africa.” – Mark Andrews
that. Our projects are 500km and 250km Shareholders can also find comfort in
away, respectively, from the capital, which the fact that Marvel was the company of
is back to business as usual anyway,” choice for Oklo to deal with in the recent
Page 100 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT
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