20 October 2016
Perth, Western Australia
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only nickel event
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QUEENSLAND FOCUS
Big Tick for tailings op
iatreme Resources Ltd lurgical test work studies
Dwill pursue a standalone to obtain enough data to
tailings reprocessing opera- develop a resource model
tion for its Tick Hill gold pro- for the tailings material.
ject in Queensland following “We’ve assumed some
the release of a favourable very conservative num-
scoping report last month. bers in this initial study
According to the scop- and again we think we
ing-level study prepared by can improve on those
Metcor, the project can sup- from these metallurgical
port a 20-month operation reports,” McIntyre said.
processing tailings through “There will be some
a standard CIP/CIL cir- regrinding of the tailings
cuit at the historic Tick Hill required to fully liberate
mine, about 110km south- the gold and there’s some
east of Mt Isa. options available for us in
Diatreme announced terms of accessing even
earlier this year a maiden some used ball mills or
resource of 630,000t @ other such equipment.
1.08 g/t gold for 680kg Diatreme is eyeing a standalone tailings reprocessing operation at Tick Hill “We think there’s a vari-
(22,000 troy ounces) for the ety of options we can now
tailings material. potential development funding for Dia- pursue to get the model more commer-
No capital or operating costs were re- treme’s Cyclone zircon project in the Eu- cial and that’s probably going to take us
leased last month, but Diatreme manag- cla Basin, Western Australia. two or three months to get through the
ing director Neil McIntyre said the initial “We want to take advantage of the process.”
report had confirmed the commercial vi- fact gold has maintained and indeed im- McIntyre said his dealings with the
ability of a standalone tailings reprocess- proved its value in relative terms,” McI- Queensland Government had been posi-
ing operation. ntyre said. tive and he believed the authorities were
“Given the small size and scale of this “It’s one of the commodities that gets doing everything within their power to
project, it doesn’t warrant the full DFS well supported in the capital markets, it’s support the resources industry, particu-
route you would normally take for a $100 well understood, the Aussie dollar ex- larly juniors.
million project or pricing metric associ- change rate has been moving favourably “Certainly in our discussions there has
ated with that level of study,” McIntyre and so we think this is a good time to be been a clear refocus on the smaller end
told Paydirt. getting this sort of operation up and go- of the market and trying to show support
“This minimises our risk and expendi- ing.” to get these projects up and running,” he
ture along the way. We’re very encour- Extensive drilling programmes, aimed said.
aged by this first report and we’ll defi- at finding out why the orebody abruptly “The Queensland Government has
nitely be burrowing in on those numbers, ended before the Tick Hill mine was established a couple of taskforces to
particularly on the capex and opex side, closed in 1995, were completed in the assess the mineral exploration and pro-
to get that final degree of certainty.” second half of last year and returned cessing companies in Queensland and
McIntyre said he was anticipating a positive results. they’ve obviously identified that the in-
start-up capex for establishing a new At the time of print, Diatreme and JV dustry is doing it pretty tough at the mo-
operation of “probably in the $8-9 mil- partner Superior Resources Ltd were ment, so they’re actively looking for ways
lion range”, but felt there were some finalising the last of a series of metal- to incentivise both exploration and the
“significant savings” to be made from establishment of mining operations.
cheaper professional services and “We participated in a major review
labour rates, including readily avail- some weeks ago about what could
able second-hand plant and equip- be done better to get some activ-
ment. ity back into the sector. We’ve been
A higher Australian dollar gold pleasantly surprised by their initiative
price encouraged Diatreme to in- and how proactive they’ve been.”
vestigate the potential of a tailings Meanwhile, Diatreme has appoint-
reprocessing operation at Tick Hill, ed consultants Sedgman Ltd to un-
which historically produced more dertake a project and enhancement
than 500,000oz of gold during the update study at Cyclone.
early 1990s. The final environmental approval
Based on a gold price near $1,700/ for the road to the proposed mine is
oz, the tailings reprocessing opera- slated to be put before the EPA this
tion is set to generate cash flow of month.
about $9.3 million, boosting share- The historic Tick Hill gold mine produced more than
holder returns and providing some 500,000oz in the early 1990s – Michael Washbourne
PAGE 52 APRIL 2016 AUSTRALIA’S PAYDIRT
Metallica rocking into
bauxite production
n initial supply shortfall of low ports to rectify environmental is-
Atemperature bauxite is ex- sues and growing calls in India
pected this year, which is good for bauxite to be reserved for do-
news for Metallica Minerals Ltd in mestic use are also contributing
Queensland. factors.
Metallica is preparing the Urqu- “When you think about bauxite,
hart bauxite project, near Weipa, it is a metal that is part of eve-
on the Cape York Peninsula for ryday consumption rather than
production early next year. infrastructure build out. We use
“We believe bauxite, specifi- it every day, more than what you
cally low temperature bauxite, is would do steel, so as the world
in a good place from a macro per- grows we should see aluminium
spective and we have a nice little The inferred resource at Urquhart is 7.5mt @ 51% consumption go up and on the
project that fits a junior, so we are aluminium oxide and 16.3% silicon dioxide back of that we will see bauxite
trying to bring that into production consumption go up,” Slesarewich
as quick as we can,” Metallica chief ex- ments out on that pretty soon,” Slesare- said.
ecutive Simon Slesarewich said. wich said. China alone needs more than 65 mtpa
“It won’t be a massive project. We are Despite only planning on delivering a bauxite to be imported, rising to 75 mtpa
looking at about 1.5 mtpa of saleable small portion of the estimated shortfall of in the next five years to support its alu-
product going into the market. We think bauxite demand, Metallica is confident minium industry.
it is a product that will be saleable every its product will be highly sought after. With Urquhart being on the tip of
day, but for a company of our size I guess The forecast is for 68 mtpa shortfall Queensland, Metallica is ideally posi-
it is significant for us. It wouldn’t be sig- in supply of low temperature bauxite by tioned to feed into China and India.
nificant for a Rio [Tinto Ltd], for example.” 2040, while immediate concerns in the Metallica almost has its ducks in line
Urquhart is not primed to be a world- industry centre on Indonesia’s ban on for its bauxite play in Queensland, while
beater, but from a 1.5-2 mtpa truck- raw exports, which has stripped 40 mtpa its interest in commodity of the moment,
barge-ship operation, Metallica expects bauxite from the global market. graphite, appears to be shaping up nicely
to generate sustainable free cash flow Malaysia’s three-month ban on ex- as well.
early on considering development capital The Esmeralda project has the compa-
outlaid will be kept to a minimum. ny excited by intersections such as 95m
“From our side of things it will be a @ 6.5% graphite from 71m and 29.1m @
very low capital start-up, we will be utilis- 7.8% graphite from 71.9m, including 7.1m
ing contractors and the logistics solution @ 12.9% graphite.
which we will announce soon will mean A drilling programme was completed
that there will be no capital involved,” on Esmeralda last year and Metallica
Slesarewich said. was set to release metallurgical test re-
He said the company was currently fo- sults at the time of print.
cusing on community engagement as it Slesarewich likened Esmeralda to the
awaits approval of a mining lease. Albany graphite project in Canada, which
Metallica expects to receive a mining has the potential to produce very high
lease approval by the end of the year. purity graphite.
The company has been through the pro- “That is what we are aiming to do
cess before, with a mining lease already there,” he said.
granted for the Urquhart Point HMS pro- “It is a unique deposit, it is a hydrother-
ject. mal deposit. That means that the graph-
While the company is confident it will ite has come out of the magma source
have its bauxite credentials in hand, it is of an old volcano rather than a metamor-
focusing on community and government phic that has been heated up and pushed
engagement and logistical solutions. around. We are spending so much time
In-house studies on logistics and load- on the test work to understand the geol-
out options have been completed, with ogy and the minerals involved so we can
Metallica looking to de-risk the project by get a better idea because it is not a typi-
negotiating a binding agreement to utilise cal [graphite] project.”
infrastructure and access at Hey Point.
“Bauxite being a bulk commodity is all – Mark Andrews
about logistics, so we will work on that Metallica expects to receive a mining lease
and we should have some announce- for Urquhart by the end of the year
AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 53
REGIONAL ROUNDUP AFRICA
Munro set to walk own path
ew Bannerman Re- cash costs of $US38/lb,
Nsources Ltd managing down 17% on the previous
director Brandon Munro estimate.
knows there’s only one way Other key economics from
to fill the giant shoes left by the optimised study included
his popular predecessor a reduced pre-production
Len Jubber – find another capex of $US793 million
pair. (down 9% from the original
Munro returned to Ban- DFS), peak annual free cash
nerman last month after flow of $US392 million and
a five-year hiatus, having improved NPV of $US419
previously served as the million and IRR of 15% (up
uranium hopeful’s general from $US350 million and 9%
manager of corporate de- respectively).
velopment and in-country Munro was confident fur-
general manger in Namibia. ther improvements could still
Jubber stunned the re- be made.
sources sectors in both “The DFS was originally
Perth and Namibia with done in boom conditions, so
his shock resignation after Brandon Munro it doesn’t incorporate the im-
seven years as Banner- pact of Chinese equipment
man’s chief executive, citing a desire to years he developed strong ties with local that over the last five years has now
pursue other business interests. community groups, including serving as proven itself,” he said.
During his tenure, Jubber oversaw the a trustee of Namibia’s Save The Rhino “The results from the pilot demonstra-
completion of the Etango DFS and the re- Trust, which he hopes will roll over to his tion plant appear to be really good and
cent optimisation study, the building and new role at Bannerman. by the time this [article] goes to print we’ll
operation of the heap leach demonstra- “I think I established myself in country have released the phase three results –
tion plant and several corporate deals as someone who rolls up their sleeves and they haven’t been incorporated into
which allowed the company to clear its and gets the job done and when you’re the results released last year.
debts earlier this year. doing that, you have very substantial “I’ve got no doubt there are ample oth-
Munro, who co-founded Namibian- interactions with the different stakehold- er gains to be reviewed, all of which can
focused base metals explorer Kunene ers,” Munro said. be incorporated into the next round.”
Resources before its reverse takeover “Also helpful was that Bannerman Munro is also upbeat about the future
by a technology company late last year, stakeholders, who I got to know in 2009 of uranium, citing recent developments in
acknowledged it would be a challenge to and 2010, had the chance to interact with China and India as a potential catalyst for
replace such a respected industry iden- me on a very different basis and that has the sector to shake off the “demand slug-
tity but is equally determined to put his reinforced a high degree of comfort and gishness” which arose from the Fukushi-
own stamp on the company. mutual trust that I can now return to. ma disaster in 2011.
“I think the only way to deal with “When you overlay the potential
that is not to try and fill Len’s shoes, for large changes in demand that
I’ll need to make my own path,” I think the only way to would come from China acceler-
Munro told Paydirt. “ ating its stockpiling programme or
“Len’s left the company in really deal with that is not to India preparing for a large-scale
good shape. The corporate trans- try and fill Len’s shoes, I’ll commercial rollout, you can well
action he completed last year is a envisage a very significant price
huge enabler for development and need to make my own path. movement,” Munro said.
securing the right partner and al- “From an investor perspective,
though there’s more optimisation to we need to remember that the price
come, he shifted the needle significantly “Obviously the connection with Na- of uranium, as yellow cake, forms such a
on the DFS last year, which means the mibia is a big plus. Having put the last tiny proportion of the end-price of nucle-
timing for me to come in and wear slightly five or six years of my life into the mining ar power such that assets which have a
different shoes to the work boots Len’s industry in Namibia, the chance for me to strategic value like Etango are extremely
been wearing is ideal. reconnect was huge. And, of course, it well leveraged to improving ambitions in
“The shoes I’ll be wearing obviously means I can hit the ground running.” the nuclear sector.
relate more to my background in corpo- Bannerman released the results of an “If you look across the sector, certainly
rate and an emphasis on creating liquid- optimised DFS on Etango last November among the exchange-traded stocks out
ity and positioning the company well for – on the same day the company acquired there, I think you’d struggle to find a com-
when we have improved uranium senti- 100% control of its flagship asset – con- pany better positioned for an upturn in
ment.” firming the project could support produc- uranium than Bannerman.”
Munro was based in Windhoek while tion of 7.2 mlbpa over an initial 15.7 years
running Kunene and during those five of open-pit mine life for lower operating – Michael Washbourne
PAGE 54 APRIL 2016 AUSTRALIA’S PAYDIRT
SAVE THE DATE
7 - 9 September 2016
Perth, Western Australia
www.africadownunderconference.com
For all enquiries please contact Tammy Caldwell on (+61) 8 9321 0355
or email [email protected]
REGIONAL ROUNDUP
Nigeria slips into new thinking
here are few upsides for countries It has got to be about people; when the
Theavily reliant on oil revenues in the people grow, the country will grow,” Uto-
current environment. mi said.
However, Professor Patrick Utomi, a For instance, Utomi said Nigeria need-
Nigerian professor of political economy ed to revisit its manufacturing strategy to
and management and former chief oper- keep pace with the global competition.
ating officer at Volkswagen, Nigeria, said “The old manufacturing ways wouldn’t
the benefit of such an oil crisis was that work in this world, so manufacturing has
people were re-thinking about the econ- to take a conscious route back to its en-
omy and potential pathways forward for dowments. There are many value chains
the country. that are competitive globally and with
Utomi said mining was an industry the that I think that we can see the diversi-
Nigerian Government was keen to ex- fied base of the economy and economic
ploit, however, there was not a quick-fix growth that is sustainable for the popula-
solution that could have an immediate tion,” he said.
impact. Professor Patrick Utomi Helping Nigeria fulfil its potential will be
“This may take some time, usually the highly educated expats returning home
minerals and mining sector does take ing country with Australia, despite cor- after stints abroad.
time to build, but there are short-term ruption being a major issue in the West Such skills and expertise needed to be
prospects like reviving the coal industry African nation. nurtured in country, with a key focus on
and that is a quick way in,” he said. Utomi said Nigerians wanted corrup- broader bases for development.
“It was a thriving industry in the 1950s tion “tackled frontly” and that the new “Significantly the new growth is com-
and 60s, then with crude oil it got aban- Government, led by President Muham- ing from re-pats; young, well educated
doned, but those mines can be revived madu Buhari, has promised to address Nigerians who are returning from living in
and we can have new coal-fired power this issue. North America, Europe and elsewhere.
companies which could light up certain “Corruption is systemic in Nigeria; you They must be supported so that the rip-
sectors of the country that are severely can’t go forward with this banner over ples that come from their work will pull in
lacking energy which is required for your head,” Utomi said. people and create new growth nodes to
growth. I think that the mining sector, “When you fight corruption, corruption ratchet things up,” Utomi said.
beginning with those low-hanging fruits fights back.” “I believe that the kinds of policies that
moving into other areas, is critical.” Stamping out corruption is one way of will allow for more financing opportuni-
Attracting foreign investment will be an filling people with confidence in the Gov- ties to go down to such people, the incu-
important part of building the resources ernment, but not the only challenge that bators, new business hubs that are being
sector, but there are hurdles for Nigeria needs to be conquered. created will the be the anchor of that new
to overcome before it is seen as an at- “The best thing that the Government economy.”
tractive proposition for investors. can do is show a very clear strategy to
Nigeria is Africa’s second largest trad- growth-oriented investment in people. – Mark Andrews
Professor Patrick Utomi delivered a presentation to AAMEG members on the new business dynamics in Nigeria
PAGE 56 APRIL 2016 AUSTRALIA’S PAYDIRT
AFRICA
Peak outcome for Ngualla
eak Resources Ltd has suc- This was achieved through opti-
Pcessfully lowered the proposed misation of the project flow sheet,
capex and opex estimates for its which confirmed Peak’s selective
Ngualla rare earths project in Tan- “Alkali Roast” process allows for
zania by 10% and 18% respec- the early rejection of the majority
tively – and is anticipating further of the low-value cerium and del-
reductions. eterious iron, leading to a likely big
A recent update to the PFS, reduction in reagent costs.
completed in March 2014, reduced “These further reductions in
the capital cost from $US367 mil- capex and opex help to position
lion to $US330 million, including a Ngualla as one of the world’s low-
25% contingency. est cost rare earth projects and we
Peak expects a number of capi- look forward to the completion of
tal cost items from the revised esti- the BFS and subsequent develop-
mate – including power plant gen- Peak has reduced the capex and opex estimates for its ment of the project,” Peak manag-
sets ($U8 million), accommodation Ngualla rare earths project in Tanzania ing director Darren Townsend said.
camp ($US12 million) and mining The project mine life was also
fleet ($US10 million) – will be reviewed The current capital costs include a optimised to 31 years, based on the high-
as part of the upcoming BFS, due for re- base-case assumption of a European grade weathered bastnaesite zone which
lease later this year. Union-based refinery to produce high- comprises only 22% of the total Ngualla
Some or all of these costs could be purity separated products. Preliminary resource of 195mt @ 2.26% rare earth
moved into operating costs through engineering work has been completed at oxides for contained 4.4mt.
BOOT (build, own, operate, transfer) several potential sites. Ngualla has proven and probable re-
contracts, along with a number of other Operating costs were reduced by serves of 20.7mt @ 4.54% rare earth
potential cost-saving opportunities cur- $US21 million per annum to $US97 mil- oxides.
rently being examined. lion per annum.
AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 57
REGIONAL ROUNDUP LATIN AMERICA
Former Vale chief dies, 56
oger Agnelli, the Brazilian class family in São Paulo,
Rbanker who turned Vale SA He was a visionary Brazil’s largest city, Ag-
into the world’s No. 1 iron ore “ that corporate nelli studied economics at
producer, died on March 19 in Fundação Armando Alvares
a plane crash. He was 56. Brazil will miss badly. Penteado in his hometown.
Agnelli, his wife and two He began his career at
children were among seven killed when and said his 10-year tenure at Bradesco’s corporate fi-
his Comp Air 9 turboprop monoplane the company had intensified its nance and investment bank-
slammed into two homes around 3:20 global expansion and transfor- ing division. His knack for
pm local time, minutes after taking off mation into a major global player. engineering complex deals
from an airport in northern São Paulo, Known for his discipline and Roger Agnelli earned him praise from his
authorities said. feisty nature, Agnelli clinched the bosses, who turned him into
“We have lost a Brazilian of extraor- top job at Vale in July 2001 after 19 years Bradesco’s youngest senior vice presi-
dinary entrepreneurial vision,” President as a corporate and investment banker dent at the age of 29.
Dilma Rousseff said in a statement, add- with Banco Bradesco SA BBDC4.SA, a At Vale, he implemented a turnaround
ing that Agnelli had devoted his career major Vale shareholder. based on tough goals. During his stint,
to big Brazilian companies and shown He instilled a culture of meritocracy revenues rose 13-fold and capital spend-
commitment to the development of his that helped make Vale Brazil’s No. 1 ing soared more than 20-fold.
country. exporter. To friends and foes, the key to “I get paid to produce results, and the
Sources said Agnelli was travelling to Agnelli’s success was accurately predict- results are there, aren’t they?” Agnelli
a wedding ceremony in Rio de Janeiro ing the rise of China as a major miner- told Valor Econômico newspaper in an
with his wife Andréia, son João, daughter als consumer, a crucial wager in turning interview in 2010.
Anna Carolina, and their two spouses. Vale, a former bloated state-controlled However, running Vale as a multina-
The weather was clear at the time of the firm, into a global powerhouse. tional put him on a collision course with
crash. “He was a visionary that corporate Brazil’s ruling Workers’ Party, which
In a statement, Vale said it learned of Brazil will miss badly,” Lawrence Pih, wanted Vale to shift from exporting raw
Agnelli´s death with “immense sadness” who for decades ran flour mill Grupo minerals to more value-added products
Pacífico SA and such as steel and fertilizers to create
sat on the board at more jobs.
LATIN the São Paulo Fed- company through indirect stakes held by
The Government has influence in the
eration of Industries
AMERICA with Agnelli, said. state pension funds.
Agnelli clashed with former President
In a Harvard Busi-
ness Review’s rank-
ing of the world’s Luiz Inácio Lula da Silva for firing 2,000
workers in the wake of the GFC of 2008.
best- per forming Months later, he accused members of
29-30 May 2013, Sydney chief executive of- Lula’s left-leaning party of trying to install
ficers published in loyalists at Vale and seek a bigger say in
February 2013, Ag- key decisions.
nelli came fourth, His brash style upset clients in Europe
only behind Apple and Japan, as well as regional govern-
Inc’s Steve Jobs, ments and politicians that were crucial
Amazon.com Inc’s for a company that depended on govern-
Jeff Bezos and ment permits, according to former em-
Samsung Group’s ployees who asked not to be named.
Yun Jong-Yong. He Lula’s successor, Rousseff, stepped
was the top mining up pressure on Agnelli and succeeded in
chief in the 100-ex- pushing him out in May 2011, just months
ecutive ranking. after she took office.
Agnelli earned Rousseff and Lula, who she named
the spot in the Har- last week as her chief of staff, are facing
vard ranking after a growing corruption probe at state firms.
The CD-Rom of Paydirt’s 2015 racking up a con- Vale has not been named in the probe
Latin America Downunder Conference solidated return nor is it under investigation.
of 934% during Following his departure from Vale, Ag-
ORDER NOW! his tenure at Vale, nelli founded AGN Participações Ltda
whose market value and teamed up with Grupo BTG Pactual
more than doubled SA in a mining JV.
CD-Rom for non-conference delegates – $175 (inc.GST)
CD-Rom for conference delegates – $115 (inc.GST) in the period. – Guillermo Parra-Bernal, Tatiana
Phone (+61) 8 9321 0355 or email [email protected] Born on May 3, Bautzer, Reuters
1959 to a middle-
PAGE 58 APRIL 2016 AUSTRALIA’S PAYDIRT
LATIN
AMERICA
17-18 May 2016, Perth
$A1,200
INC. GST
Visiting Delegations to date:
Republic of Ecuador, keynote presentation by HE Mr. Javier Cordova Unda, Minister of Mines
Republic of Venezuela, keynote presentation by HE. Mr Richard Lozada, Vice Minister for Mining
Republic of Colombia, keynote presentations from Santiago Angel Urdinola, President of Colombian Mining Association
and Ms Silvana Habib-Daza, President of National Mining Agency of Colombia
United Mexican States, keynote presentation by Mario Alfonso Cantú, General Coordinator of Mining (TBC)
Republic of Cuba, keynote presentation by Yuri Viamontes Lazo, Vice Minister of Energy and Mines
Argentine Republic, keynote to be confirmed
Republic of Chile, keynote to be confirmed
Conference sponsors
& supporters to date:
www.latinamericadownunder.com
To present, exhibit or attend as a delegate please contact
Melita Fogarty on (+61) 8 9321 0355 or email [email protected]
REGIONAL ROUNDUP
Troy happy with single-minded
Guyana focus
roy Resources Ltd is more
Tthan comfortable to have its
focus narrowed to one country,
especially when that country is
one of the last untouched gold
exploration hotspots in the world.
The sale of the company’s
Casposo silver-gold project in Ar-
gentina means the only operating
asset under Troy’s control is the
newly minted Karouni operation
in the South American nation of
Guyana. For some companies,
the lack of geographic diversity
would be a concern but such is
Troy’s confidence in Guyana that
it sees no problem with a single
jurisdiction focus.
“We think Guyana is a compa-
ny-maker in a very real sense of
the phrase,” Troy managing di- Troy is happy to have the newly minted Karouni operation in Guyana as its sole focus
rector Martin Purvis told Paydirt.
“It has unique geological characteristics and the closure of the Andorinhas gold the end of April 2015. The project has
and has been largely unexplored using mine in northern Brazil. since been sold to Anfield Nickel Corp
modern techniques but it sits in a re- “There was a huge amount of pressure for $US2.4 million with a further $US1
gion with an incredible track-record from to get Karouni up and running before the million to be paid following production of
small-scale mining.” wheels fell off in Argentina. The compa- 20,000oz gold or by February 2017.
Troy poured first gold at Karouni in ny could see the writing on the wall there; The deals leave Karouni as the com-
November 2015, two months behind the political situation meant it was hard to pany’s only producing asset. The mine
schedule but still only nine months after make any money and the fall in the silver was built for a total capital outlay of $133
the company began construction. Pur- price made it even more difficult.” million, with Purvis saying the 101,000
vis, who joined the company in Septem- ozpa operation would be one of the only
ber 2014, after the decision to mine had gold mines in recent times to achieve pay
been taken, said he had been surprised back within 12 months. The company de-
by how close the company had got to its clared commercial production in Febru-
construction deadline. ary with full ramp-up to 1 mtpa set to be
“I am very proud,” he said. “When you achieved in March.
set the bar so high in expectations, get- Troy has established its reputation on
ting this close is tremendous. The origi- building short life, low-cost mines for
nal target had been set before I joined minimal capital outlay but Purvis said the
the company and I thought it was too company’s footprint in Guyana offered
ambitious when I started. The company the opportunity for more longevity.
only mobilised key equipment in Febru- “Establishing Karouni has put us in
ary 2015 because we didn’t receive the a great position for the future,” he said.
mining licence until then. We then had “We have only really scratched the sur-
the first change in government for 23 Martin Purvis face of Guyana’s potential and we never
years which slowed things down but we went there to just set up a three to four
pushed on and eventually achieved first In early March, Troy announced it year mine.”
gold pour in November. would sell its 51% interest in Casposo to Prior to the start-up of Karouni and
“It is still an incredible achievement to fellow Australian company Austral Gold Guyana Goldfields Inc’s Aurora gold
complete the project in a remote part of Ltd for $US3 million over 12 months with mine last year, the Omai mine had been
the jungle with little infrastructure in a the option to acquire the remainder in the country’s only commercial operation
country we’d been in for less than two subsequent instalments. despite it being host to a prolific small-
years.” In Brazil, the company was able to fund scale mining sector for more than four
Purvis said the production start-up had the $3 million closure liabilities at An- centuries. The gold majors had previ-
been aggressive to allow Karouni to fill dorinhas by processing low-grade stock- ously been unable to establish them-
the gap left by Casposo’s winding down piled ore and garimpeiro tailings until selves in a country where a legacy of
PAGE 60 APRIL 2016 AUSTRALIA’S PAYDIRT
LATIN AMERICA
Production start-up at Karouni has been aggressive to compensate for the gaps left by Casposo in Argentina
winding down and the closure of Andorinhas in Brazil
small, fragmented tenement ownership tury or more worth of discoveries but vanced exploration model and the best
has been created by historic artisanal they are still making new discoveries,” understanding of gold mineralisation in
mining. Purvis said. “In Guyana, there is virtually the country so we are ahead of the game
“There was a feeling it was too tough no information because people haven’t and because we are small and nimble we
to pull a decent exploration package had access to the underlying geology can move things along quickly.
together because the size of the tene- and structural maps are the key to find- “However, early stage exploration is
ments make Guyana look like a compli- ing gold in Guyana.” always more about thinking exploration
cated jigsaw. But Azimuth [the company With its focus largely on building Ka- rather than doing exploration. You need
Troy acquired to secure Karouni] did a lot rouni, Troy itself has undertaken little to use smart geologists to filter out the
of work in this regard and we now have exploration but Purvis said attention was noise and focus on the most logical tar-
control of a lot of ground,” Purvis said. now turning to the next stage of the com- gets. When you’ve got 60km of shears
The 1,000sq km land package is the pany’s growth. you have got to be selective,” Purvis said.
largest Troy has ever controlled and the “We haven’t spent a lot of time on ex- “We have been through 18 months of
company is now preparing to work out ploration other than infill drilling but now working out how to tackle the different
exactly how it tackles such an asset. we have to step back and start expand- environments in the country, how to work
While the company believes there is la- ing our regional programmes,” he said. in the jungle and what the signature we
tent potential in the country, the lack of “Exploration will be split between looking are searching for look like.”
previous exploration and dearth of geo- for mine life extensions around the head-
logical data available makes target se- frame at Karouni – either along strike or – Dominic Piper
lection more difficult. underneath the Hicks and Smarts pits –
“In places like Western Australia there and testing regional potential.
is an endless amount of data and a cen- “We believe we have the most ad-
Case histories of discovery
The world’s pre-eminent
gold exploration event
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AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 61
THANK YOU
TO ALL SPONSORS, SPEAKERS,
EXHIBITORS AND DELEGATES
REGIONAL ROUNDUP
Red alert for RTG at Mabilo
TG Mining Inc stocks a near-term devel-
Rsoared last month af- opment opportunity,
ter a feasibility study on however, a timeline to
the Mabilo copper-gold first DSO production
project, Philippines, was was not given at the
released to market. time of print.
RTG’s share price “The feasibility
reached 60.5c/share the study demonstrates
day the full feasibility study the potential for Ma-
was announced and at the bilo to outperform,
time of print was trading at specifically reinforc-
54c/share. ing the resilience of
Investors have taken the project despite
kindly to RTG’s two-stage current commodity
strategy to production at prices. The project is
Mabilo which will start with RTG has worked hard to complete a DFS at Mabilo, south-east Luzon, both high grade and
the DSO component. less than 15 months from the maiden resource announcement low cost, underpinning
Capex for the DSO the robust economics
oxide operation has been estimated stage two of $US161.4 million, including presented in the feasibility study, includ-
at $US17.4 million to produce 34,700t $US14.8 million of recoverable tax. ing a 33% IRR (43.6% with only a 10%
copper equivalent and 144,000oz gold RTG is confident that the DSO start- lift in commodity prices) and an equiva-
equivalent at an average cost of $US62/t up can begin to generate early cash flow lent operating cost of $US0.80/lb copper
($US0.42c/lb and $US224/oz) generat- four to five months after permits are fi- equivalent or $US425/oz gold equivalent
ing net operating cash after tax of $US68 nalised. for concentrate production,” the compa-
million. With a probable reserve base of ny said in an announcement.
The study was based on prices for 7.792mt @ 2.04 g/t gold, 1.95% copper, Based on a treatment rate of 1 mtpa,
copper of $US5,000/t, $US1,200/oz gold 8.79 g/t silver and 45.5% iron contain- estimated production from stage two
and $US50/t iron ore which projects IRR ing gold equivalent before recoveries of plant operations are 38,300t copper
(after tax) of 33.4% and a two-and-a-half 1.3 moz @ 5.26 g/t and 316,00t @ 4.1% equivalent and 160,000oz gold equiva-
year payback for the plant obligation in copper equivalent, RTG sees Mabilo as lent.
Four new smelters for Indonesia in 2016
ndonesia hopes four new smelters will smelters, in hope of helping them build
Ibe completed in 2016, a mining ministry domestic processing facilities, Gatot
official said last month, as low commodity said, adding that Freeport’s $US530
prices continue to create financial prob- million smelter bond was still being dis-
lems for the mining industry and shrink cussed.
government returns. “The $US530 million isn’t regulated. It
Indonesia banned metal ore shipments was just a way for us to control their seri-
in early 2014 to encourage firms to build ousness,” he said.
smelters and shift exports from raw ma- Freeport was forced to halt overseas
terials to higher-value finished metals. shipments last month after the Govern-
But the ban cost the country, the world’s ment demanded the company first pay a
top nickel ore exporter at the time and a $530 million deposit for a smelter before
major supplier of bauxite, billions of dol- Indonesia’s new smelters will process nickel, it renewed the permit.
lars in lost revenue alumina and lead The Government is still reviewing the
Dozens of smelter projects have been $US1.7 billion tag Freeport put on a stake
delayed, many of them in nickel, as a re- earlier smelter target for this year. in its local unit, he said.
sult of the current downturn in commod- Indonesia’s mineral export rules have “We need to agree on parameters
ity prices, and only five nickel smelters of been a flashpoint between the Govern- first.”
a targeted 12 were completed last year. ment, which is constitutionally bound to The Government’s non-tax revenue
“In 2016 we hope four additional smelt- maximise returns from resources and from mining missed its target by 43% in
ers will be operational,” Coal and Min- companies including US miner Freeport 2015 and could remain flat in 2016, also
erals Director General Bambang Gatot McMoRan Inc. below target, he said.
told reporters. The smelters will process New rules issued by the Government
nickel, alumina and lead. in February allow mining companies – Fergus Jensen, Reuters
The latest figure is around half of an to revise the capacity of their planned
PAGE 62 APRIL 2016 AUSTRALIA’S PAYDIRT
ASIA
India looks to cook with Australia
ove or hate Australia’s Watkinson said.
Lversion of MasterChef, Since being in the role, Go-
the fact is the reality cook- yal has undertaken a range of
ing show is the most watched initiatives to create momen-
programme of its kind in In- tum and transparency in the
dia. mining sector, including tak-
And while that is good for ing back mining leases and
the broadcaster’s ratings, auctioning them to suitors in
perceptions of Australia and an online, transparent sys-
what the country can offer in tem.
a social and leisure context The mining lease auction
are also portrayed. was played out in real time,
This all builds capacity for where bidders from around
Australia to strengthen its the world could track tene-
reputation in a country that is ments and bid for them.
quickly emerging as a lead- Watkinson said it was ini-
ing global economy. tiatives like that which inter-
“We are seen as a desir- national players would leave
able place to live, study and more confident with invest-
our sporting ties bind us to- Minister of State Independent Charge for Power, Coal, New and ment in the Indian market.
gether in a way that really Renewable Energy, Piyush Goyal. Photo: George Makrigany Currently there are in ex-
doesn’t happen with other in- cess of 20 Australian sub-
ternational competitors. All those things to-business linkages across six different sidiaries operating in India, which is
can be leveraged from,” Austrade senior areas, as well hold energy/security dia- underdone compared to the scale of
trade commissioner Nicola Watkinson logue with [Australian Resources] Minis- opportunity in the country, according to
told Paydirt. ter Josh Frydenberg, which looks at the Watkinson.
Currently there are more than 500,000 government-to-government linkages in “I think that reflects that until fairly re-
Indians living in Australia – the fastest the energy space,” Watkinson said. cently companies were busy at home
growing micro-population down under – Goyal made it clear that coal is on the and there was lots of good work opportu-
while at least 50,000 Indians are listed as agenda for India, as there is no way of nities available in Australia and perhaps
studying in Australia. delivering on public ex- there was not a need to
Meanwhile, Australia consistently pectations of power sup- look extensively at ex-
ranks as a holiday destination of choice ply without having coal port opportunities,” Wat-
for Indians. as the significant part of kinson said.
Indian Prime Minister Narendra Modi’s the energy mix. “If you have a forward
visit in November may not have been for Also looking after the look at where the global
leisure, however, his presence in coun- new and renewable en- market is going, clearly
try – the first by an Indian PM in over 20 ergy portfolio, Goyal is India is going to be one
years – further enhanced relations be- keen to tap into Aus- of the top markets in
tween Australia and India. tralia’s competitive tech- terms of mining over the
“I think he was seen as very credible, nologies in that space. next decade and further
business-focused and reform-minded However, no matter how into the future. We would
and during those discussions one of the quickly the new and re- be saying that we cer-
things he emphasised was the desire newable energy sector tainly think it is time for
for India and Australia to have a much is growing, it still won’t Australian companies to
stronger tie-up in the area of mining be- enable India to meet its really have another look
cause Australia is globally recognised as energy requirements. Austrade senior trade commis- at India, see what chang-
a genuine centre of world-class excel- Therefore, coal and its sioner Nicola Watkinson es have taken place over
lence in mining,” Watkinson said. technologies will be at the last 18 months since
Since Modi’s visit last year, a number the forefront on India’s strategy to fulfil its the Government has come into power
of dignitaries have come to Australia, in- growing power demand. and see whether it might be an opportu-
cluding Minister of State with Independ- “That has a few elements and part of nity to look at a market entry strategy to
ent Charge for Power, Coal, New and that is supply of coal from Australia and start to capture the opportunities that are
Renewable Energy, Piyush Goyal. we know there are some big projects building in the market over here from the
Goyal, a leading minister in Modi’s under way that are looking to be able to more transparent systems that are being
Government, was tailed to Australia by work in that space, including the Adani developed at government level.”
a delegation of over 45 business repre- project. Equally, he [Goyal] saw many
sentatives, plus private sector organisa- opportunities for Australian METS com- – Mark Andrews
tions in India’s mining and gas space. panies to be able to come to Indian mar-
“The aim of the visit was to hold a se- kets to be able to support the develop-
ries of roundtables to explore business- ment of the coal sector here in India,”
AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 63
REGIONAL ROUNDUP
Neometals heads to Europe
eometals Ltd has one eye metals’ gold and nickel JV
Non shipping lithium from projects including Forrestan-
its Mt Marion lithium project ia, Lake Johnston and Queen
in Western Australia and the Victoria Rocks.
other on Europe. Terms of the deal also in-
The company’s entry into clude Hannans completing a
Europe will come via a strate- $1.25 million capital raising
gic collaboration agreement with Neometals underwriting
with Hannans Reward Ltd, the final $250,000.
whereby the latter’s unlisted Upon completing the rais-
subsidiary – Scandinavian ing, Hannans will be funded
Resources (SCR) – will be with about $2.5 million for
demerged. work programmes planned
Subject to shareholder up until 2018.
approval, SCR will be de- “This strategic collabo-
merged by Hannans making ration with Neometals is a
a pro-rata issue of shares fantastic outcome for Han-
to its shareholders, while nans shareholders,” Hannans
Neometals has agreed to managing director Damian
subscribe for 62.5 million Hicks said.
shares at 4c/share to raise “The demerger of our
$250,000, with 31.25 million Swedish projects into a sepa-
options in Hannans exercis- rate unlisted vehicle will en-
able at the same price within able a dedicated team to take
the next two years. advantage of the significant
Neometals will become the opportunities we are see-
largest shareholder in SCR ing in European lithium. In
with 13.5% of the company. Neometals – a proven lithium
SCR and Neometals will Neometals has taken an interest in Hannans’ Scandinavian assets project developer and soon-
enter into a lithium knowl- to-be producer – we have
edge and technical assistance agree- Meanwhile, Hannans will exit Sweden found the ideal partner which will enable
ment to identify and advance lithium op- and return to its roots of gold and nickel Scandinavian Resources to accelerate
portunities in Europe. exploration by assuming control of Neo- this strategy.”
Eldorado Gold jumps hurdle at Olympias
anadian miner Eldorado Gold Corp’s ki. It warned it would do the same at its trate will be produced via a flotation pro-
CGreek unit Hellas Gold has been Olympias mine if it did not secure neces- cess, with annual gold output for the first
granted a license by Greece’s environ- sary permits by the end of March. four full years of production forecast to
ment ministry for its Olympias mine, re- The permit granted in late March al- be 60,725oz at cash costs of $30/oz, in-
moving a hurdle to develop its project in lows Eldorado to set up a processing cdluing by-product credits.
the north of the country. plant in Olympias, which is crucial for the Meanwhile, Hellas Gold is still awaiting
Eldorado had been in a dispute with development of the mine. another license for the Skouries mine,
the Greek Government over plans to “The project can now continue so that which will determine whether construc-
develop gold mines in a forested area in from the first quarter of 2017 the ore that tion work will restart at the site. Eldorado
northern Greece, with the leftist govern- will be produced at the mine will be pro- halted the Skouries project in January,
ment voicing environmental concerns cessed at the Olympias facility,” Hellas laying off some 500 workers.
over the project. Gold said in a statement. It has invested about $700 million
The Government revoked Eldorado’s A total of 16,396oz gold was produced to develop the Skouries and Olympias
permit in August over environmental from the retreatment of tailings, an oper- mines since 2012 and plans to invest an-
tests on the project but Greece’s top ad- ation that has been ongoing since 2012 other $1 billion in the projects.
ministrative court annulled the Govern- and scheduled to end at the end of Q1
ment’s decision in January. 2016. – Angeliki Koutantou, and George
Tensions came to a head that month, Phase II of Olympias will involve un- Georgiopoulos, Reuters
when Eldorado said Athens was delaying derground ore to be processed through
the necessary permits and halted con- at concentrator at 385,000 tpa.
struction of its Skouries mine in Halkidi- A lead-silver, zinc and gold concen-
PAGE 64 APRIL 2016 AUSTRALIA’S PAYDIRT
EUROPE
Energia fast-tracks Gorno DFS
nergia Minerals Ltd will pro-
Educe a DFS on Gorno just six
months after releasing the first
economics for its promising zinc
project in northern Italy.
A scoping study on Gorno was
completed at the time of print, with
the results set to be released early
this month.
Energia managing director Kim
Robinson said the study would
contain “more advanced” results
than a standard scoping release,
allowing Gorno to be fast-tracked
through the subsequent phases of
project assessment.
“It’s going to progress pretty
rapidly to a DFS, which we aim to
have completed by October,” Rob-
inson told Paydirt.
“One thing you can say about
the scoping study is it’s going to
be a highly robust one in that it’s a
pretty unusual situation we’ve got
up there. We’re actually in the ore-
body, we can see it. Energia will release a scoping study on Gorno this month
“We know we’re sitting above
the water table so there won’t be too 9m @ 13.5% zinc, 4.2% lead and 75 g/t of about 4mt which we couldn’t really
many question marks about water issues silver and 4m @ 32.3% zinc, 7.9% lead verify, but the drilling we carried out has
that might develop. It’s a fairly unique and 74 g/t silver. substantiated the part we have known
orebody in that there’s no uphill haulage Energia has since announced a re- about around Zorzone.
as well.” vised exploration target of 7-11mt @ “So we’re really just capturing all of that
The scoping study, completed by Jor- 7-10% zinc-lead for the entire Gorno pro- historical reserve inside our new explora-
vik Resources Pty Ltd, will incorporate ject, up from the previous exploration tar- tion target, basically enabling us to bring
the recently announced maiden resource get of 3-5mt @ 7-10% zinc-lead. that into the picture as well.”
estimate for the Colonna Zorzone depos- “The Zorzone deposit has remained Further drilling campaigns at Gorno
it of 3.87mt @ 6.1% zinc, 1.6% lead and pretty well as we expected, but what the were ongoing at the time of print.
25 g/t silver for contained 238,000t zinc, drilling programme we carried out has Robinson, one of the founding direc-
63,000t lead and 3.1 moz silver, using a proven is that all the historical data is in tors of one-time prominent zinc mining
cut-off grade of 1% zinc. pretty good shape,” Robinson said. company Kagara Ltd, was upbeat about
The resource remains open both up- “At the end of mining exercises that the future forecasts for the base metal,
dip and down-dip and includes 970,000t ENI carried out when they stopped min- predicting Gorno would be well placed to
@ 7% zinc, 1.9% lead and 29 g/t silver ing in 1979, they had a remaining reserve take advantage of an anticipated tighten-
for contained 68,000t zinc, 19,000t lead ing market in the next few years.
and 900,000oz silver in the indicated cat- “It certainly is one of the commodities
egory. that comes out as a lead indicator, there’s
“It certainly has panned out to be high- no doubt about that,” Robinson said.
grade, which is a very positive develop- “Zinc prices have started to recover
ment,” Robinson said. now that some of the major producers
“The other thing is there’s a lot more have gone out of production, with Centu-
silver in there than we expected, which ry and Lisheen having shipped their last
will provide a real benefit to the project.” concentrates.
The maiden resource estimate follows “There’s been a deficit for the last three
a successful underground diamond drill- years and that will accelerate going for-
ing programme at Gorno at the back end ward. We’re looking at a very tight market
of last year, headlined by a standout in- in the zinc space for the next couple of
tercept of 6.1m @ 9.1% zinc, 2.3% lead years, which is a great time to be going
and 24 g/t silver from 6.6m, including 3m into the development of Gorno.”
@ 15.7% zinc, 3.8% lead and 39 g/t sil-
ver. – Michael Washbourne
Other impressive intercepts included Kim Robinson
AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 65
SIGNED, SEALED AND DELIVERED
Kleenheat’s EVOL LNG will supply gas to Doray’s Deflector project
EVOL LNG to supply Ausenco strengthens minerals industry.
With particular strengths in mining and
gas to Deflector ties with Atlantic Gold geology, Met-Chem shapes as a good fit
for DRA because of the South African
Kleenheat’s EVOL LNG will supply Ausenco Ltd has been confirmed as firm’s specialist capabilities in design
Doray Minerals Ltd’s Deflector gold- the preferred EPC contractor for Atlantic engineering, mineral processing, EPCM
copper project with about 4,560 tpa Gold Corp’s Moose River Consolidated project delivery and contract operations.
LNG from its Kwinana plant, starting this gold project in Nova Scotia, Canada. Established more than 40 years ago,
month. The engineering and construction firm Met-Chem has strong ties with mining
A 7MW dual-fuelled power station is is expected to deliver the project’s pro- clients in Europe, Africa, China, India,
currently under construction at Deflec- cessing plant and various other infra- North and South America.
tor, 160km east of Geraldton, and will be structure for $89 million under a fixed- DRA will retain Met-Chem’s office in
owned and operated by Kalgoorlie Pow- price EPC contract. Montréal, from which it will continue to
er Systems (KPS), a subsidiary of Pacific Negotiations as to the form and detail service clients in Québec, Eastern Can-
Energy Ltd. of the EPC contract remained ongoing at ada, North and West Africa.
It will be fuelled by 30% diesel and the time of print. “DRA continues to expand its business
70% natural gas. Ausenco, via the Ausenco-DF alliance, in the Americas and the acquisition of
EVOL LNG business manager Nick has been involved with the project since Met-Chem is a logical next step for our
Rea said the company was pleased to November 2015, having completed fur- growth in this region,” DRA Americas
have secured the contract during a pe- ther detailed diligence and preliminary chief executive Wray Carvelas said.
riod of historically low energy prices. engineering on the initial capex esti- “This acquisition allows us to offer en-
“Among other key innovations, the on- mates for a feasibility study. hanced services to our existing mining
site LNG storage and vaporisation facility “We are delighted to progress to the and mineral clients and we look forward
will use a unique LNG vaporisation sys- next stage of the quality project and we to servicing new clients in the Ameri-
tem, where waste heat from KPS’s power look forward to continuing to work with cas and other regions, such as French-
station will be recovered to vaporise LNG Atlantic Gold over the coming months to speaking Africa, with our expanded ca-
instead of traditional ambient air fin va- execute a final EPC agreement,” Ausen- pabilities.”
porisers, making the solution more cost co chief executive Zimi Meka said.
competitive,” he said.
“By using LNG at Deflector, Doray will Thunderbird BFS is go
reduce its exposure to imported diesel DRA finds perfect fit for Hatch
costs, avert more than 3,800t (17%) of with Met-Chem
carbon emissions per year compared to Sheffield Resources Ltd has appointed
diesel, which is equivalent to removing Engineering group DRA International leading engineering group Hatch to de-
more than 1,100 cars from the road, and has agreed to acquire Met-Chem Cana- liver the BFS for the Thunderbird mineral
support jobs in the local production and da Inc from UEC Technologies LLC, part sands project, near Derby in Western
distribution of LNG.” of the United States Steel Corporation. Australia.
Doray managing director Allan Kelly Met-Chem is a consulting engineer- Hatch was selected for its experience
said the use of LNG would provide De- ing company headquartered in Mon- and knowledge of the mineral sands sec-
flector with stable power and low ener- treal that provides services including tor, particularly its expertise in ilmenite
gy costs throughout the initial life of the resource estimation, mine design, plan- processing technology.
mine. ning and processing to the metals and The BFS appointment follows the PFS
PAGE 66 APRIL 2016 AUSTRALIA’S PAYDIRT
update released last October which con- quality asset, managed by a team with RigScan, a structured methodology for
firmed Thunderbird was a strategic, high a proven track record in the successful monitoring and testing equipment, was
margin, zircon-rich asset. delivery of greenfields development,” GR trialled by Perilya in late 2015. It provides
The scope of the BFS will be similar to Engineering managing director Geoff detailed service information, fault diag-
the PFS, however, Sheffield has taken Jones said. nosis and condition reporting.
the opportunity to capture the benefit of “We look forward to working with Vimy According to Atlas Copco service su-
higher head-grade in the project’s early on the delivery of the Mulga Rock project pervisor Adam Edwards, RigScan re-
years by further refining its two-stage DFS.” ports have helped the team at Broken
production strategy as described in the Hill easily identify the most urgent works
PFS. on the trucks.
Under the new strategy, throughput RigScan success at “We have always provided Perilya with
will start at 7.5 mtpa and ramp up to 15 Perilya’s Broken Hill some form of ongoing audit which has
mtpa from the fourth year. The exact tim- helped inform decisions about sched-
ing of the move to 15 mtpa will be refined uling of major repairs, prioritisation of
through the BFS process, in conjunction works, general safety and equipment
with marketing initiatives, including dis- monitoring,” he said.
cussions with potential offtake partners. “However, while the reporting system
“We look forward to working with Hatch was working well enough, I guess you
and our other key consultants and stake- realise how much better things can be
holders as we progress Native Title, per- when something like RigScan comes
mitting and community engagement, in along.”
parallel with the BFS,” Sheffield manag- The audit will cover everything from
ing director Bruce McFadzean said. the most urgent critical issues to sim-
ple monitoring activities using advanced
GR Engineering taps technologies such as thermal imaging
and oil particle analysis.
into uranium To minimise downtime, most of the au-
An additional seven RigScan audits were or- dits are completed during scheduled ser-
Uranium hopeful Vimy Resources Ltd dered after a successful trial of Atlas Copco’s vices, while operational tasks are carried
has appointed GR Engineering Services new service methodology at Broken Hill out when the trucks are working.
Ltd as study manager for the Mulga Rock Broken Hill has been producing zinc
DFS. and lead concentrate from its under-
Vimy has completed several phases of Perilya Ltd’s Broken Hill operation has ground mine since 2002.
work since completing the PFS last No- booked an additional seven RigScan
vember which will provide input into the audits after the successful trial of Atlas
DFS, including the first of two test pits, Copco’s new service methodology on Downer firms for
collection of 25t of ore sample from that one of the MT6020 trucks in its fleet. Mount Peake contract
pit and an infill drilling programme. The miner runs a fleet of eight Atlas
The Mulga Rock DFS study manager Copco trucks, five 60t MT6020s and Downer EDI Ltd has entered into a
appointment adds to GR Engineering’s three 50t MT5020s that are supported by non-binding MoU with TNG Ltd to par-
growing list of recent contract wins. the local Atlas Copco team. The trucks ticipate in the development, construction
“We consider Mulga Rock to be a high have been on site since 2010. and operation of the Mount Peake vana-
dium-titanium-iron project in the North-
ern Territory.
Under the terms of the MoU, both par-
ties will work together in a number of ar-
eas to identify opportunities which may
lead to Downer’s involvement as a key
development partner in the construction
and operation of Mount Peake
Potential opportunities include engi-
neering, procurement and construction
of the Mount Peake processing plant and
drilling, blasting, loading and haulage of
minerals and waste materials at site for
the life-of-mine.
TNG completed a DFS for Mount
Peake last year, confirming the project
could sustain production of 17,560 tpa
vanadium pentoxide, 236,000 tpa tita-
nium dioxide and 637,000tpa pig iron.
Other key findings included life-of-mine
net cash flow of $11.6 billion, a pre-tax
IRR of 41% and an NPV8 of $4.9 billion.
GR Engineering will serve as study manager for the Mulga Rock DFS
AUSTRALIA’S PAYDIRT APRIL 2016 PAGE 67
COMINGS AND GOINGS
ormer chief operating of- ment and operations and is be the non-executive chair- Minerals Ltd managing di-
Fficer at Beadell Resources currently a non-executive di- man and Davey will serve rector Hamish Halliday has
Ltd Boyd Timler has been ap- rector of Kinetiko Energy Ltd. as a non-executive direc- stepped into the chair, while
pointed chief executive of Me- tor. IMX managing director Ross Williams has also joined
dusa Mining Ltd. Timler has ndrew Stewart has been Phil Hoskins will assume the the company’s board as the
also spent time as managing Aappointed as an execu- same role at Graphex. nominee for JV partner Emer-
director of Lumwana Mining tive director of Xanadu Mines ald Resources NL.
Company, a subsidiary of Ltd, in addition to his role as
Barrick Gold Corp. chief executive. uxton Resources Ltd has
Bappointed Eamon Han-
aradigm Metals Ltd has hris Farmer has stepped non as managing director.
Pappointed Earle Harper Cdown from all executive Hannon is a geologist who
as a non-executive director. and board roles with Finders worked at Fortescue Metals
Meanwhile, Anthony Reilly Resources Ltd. He had been Group Ltd for almost a dec-
has resigned as a director involved with the company ade. He has served as Bux-
and chief executive of the since 2004. ton’s chief executive since
company for personal rea- October 2014.
sons. eteran fund manager
VJim Rogers has been
ony Ho has resigned from appointed a non-executive Grant Davey
TApollo Minerals Ltd af- director of Crusader Re-
ter seven years as a director sources Ltd. Rogers was the icholas Geddes has re-
and past chairman. Company co-founder of the highly suc- Nsigned as company sec-
secretary Guy Robertson cessful Quantum Fund, which retary of Timpetra Resources
has replaced Ho on Apollo’s gained 4,200% during the Ltd. Wendy Dillon and Brett
board. 1970s and is widely recog- Tucker will share the role.
nised as one of the first truly
international funds. avan Rice has resigned
Gas a director of New Age
ining Projects Group Ltd Exploration Ltd.
Mhas appointed experi- Robert Behets
enced mining executive Ian acian Gold Ltd has ap-
Finch as its new chairman. Dpointed Ian Cochrane obert Behets has been
Finch is also the chairman of as a non-executive director. Rappointed a non-execu-
Tyranna Resources Ltd, the Cochrane was widely re- tive director of Equatorial Re-
principal vendor of the Pilbara garded as one of Australia’s sources Ltd. Behets is a geol-
lithium-gold project being ac- leading M&A lawyers until he ogist with more than 28 years
quired by MPJ. retired from the practice in of experience, including stints
December 2013. with Mantra Resources Ltd,
Clay Gordon
Papillion Resources Ltd and
ohn Banning has resigned Berkeley Energia Ltd. Behets
rimary Gold Ltd has ap- Jas a director of Consolidat- also recently joined the board
Ppointed key shareholders ed Tin Mines Ltd. Ralph De of WCP Resources Ltd, re-
Garry Mills, Tony Patrizi and Lacey will assume the role of placing long-serving director
Evan Cranston to its board as managing director in addition Simon O’Loughlin.
part of a company restructure. to his duties as co-chairman.
Founding managing direc- roy Resources Ltd has
tor Clay Gordon has stepped eil Porter has been ap- Tappointed Fred Grimwade
down after three years in the Npointed non-executive as chairman. Grimwade has
role. director of Horseshoe Metals been acting in the role since
Ltd. Porter founded and oper- last July, having served as
ohn Hodder has been ap- Ian Finch ates two logistics and supply non-executive director since
Jpointed a non-executive companies which service the 2010.
director of Regal Resources ichard Goodmanson will mining and industrial sectors.
Ltd. Hodder is the principal of Rnot seek re-election to the
mining-focused private equity board of Rio Tinto Ltd at the ofia Bianchi has resigned
firm Tembo Capital. It is envis- company’s AGM next month. Sas a non-executive direc-
aged he will remain a director Goodmanson has served tor of Alchemy Resources Ltd
until financing is carried out to as a non-executive director after four years on the com-
complete the Kalongwe DFS. since December 2004. pany’s board.
indimurra Vanadium Ltd MX Resources Ltd spinout lan Campbell has re-
Whas appointed James IGraphex Mining Ltd has ap- Asigned as non-executive
Searle as managing director. pointed Stephen Dennis and chairman of Renaissance
Searle has 34 years of experi- Grant Davey to the board of Minerals Ltd due to his re-
ence in exploration, develop- the new company. Dennis will location overseas. Venture
PAGE 68 APRIL 2016 AUSTRALIA’S PAYDIRT
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LEFTFIELD
Bacteria link to platinum find
he discovery of the bacteria in these pro- a technique known as next generation
Trole played by bacteria cesses. This improved sequencing.
in the formation of plati- bio-geochemical un- Searching for specific micro-organ-
num in surface environ- derstanding is not only isms associated with PGMs could guide
ments could have major important from a scien- exploration companies to new deposits
implications for the future tific perspective but we under the surface, he said.
exploration of the precious hope will also lead to “It is very similar to when police look
metal. new and better ways of for a suspect. They find a cigarette butt
Australian scientists, exploring for these met- somewhere and extract the DNA and
led by the University of als,” Dr Reith said. then they get a fingerprint and they can
Adelaide, have linked “One of the difficul- match it to the suspect. In very simple
specialised bacterial com- ties with finding depos- terms we can do the same with microbial
munities found in biofilms its of platinum is that communities in soil sediments,” Dr Reith
on the grains of PGMs at we need to understand said.
three separate locations Australian researchers have the exploration sig- “If there’s interest from industry we can
around the world. discovered a link between nals that we get and then extend that research into finding
Dr Frank Reith, senior bacteria and platinum deposits we don’t know exactly tools for exploration.”
lecturer at the University how platinum travels in The study, published in the journal
of Adelaide’s School of Biological Sci- earth surface environments and what the Nature Geoscience, investigated PGMs
ences and visiting researcher at CSIRO mechanisms are that are involved. from Brazil, Colombia and Tasmania.
Land and Water, said finding new depos- “What we were trying to understand in The researchers included groups from
its of PGMs was becoming increasingly this study is that biological mechanisms Monash University, Mineral Resources
difficult due to a limited understanding of can be involved in the transformation of Tasmania, University of Queensland,
the processes that affected the way they that platinum in certain environments.” The University of Western Australia,
were cycled through surface environ- Dr Reith said the research could allow RMIT and the Federal Institute for Geo-
ments. the development of a different style of sciences and Natural Resources, Ger-
“This research reveals the key role of exploration using biological entities and many.
INDEX
Adani 46 Emmerson 13 Medusa 68 Rio Tinto 6, 53, 68
Alchemy 68 Energia 65 Metal Bank 50 Rox 9
Allied Gold 20 Equatorial Potash 45 Metallica 53 RTG 62
Anfield Nickel 60 Equatorial Resources 68 Metals of Africa 5
Anglo American 7 Evolution 8, 13, 48, 50 Metals X 8 Sheffield 44, 66-67
Apollo Minerals 68 Exxaro 7 Mincor 9 Sibanye 7
Archer 38 Mineral Resources 17 Silver Lake 49
Atlantic Gold 66 Finders 68 Mining Projects 68 Stavely 49
Austral Gold 60 Fortescue 17, 68 Minotaur 39 St Barbara 20
Avenira 43 Freeport 62 Marmota 22 Superior 52
Bannerman 54 Glencore 7 Neometals 64 Talga 5
Barrick 48, 68 Guyana Goldfields 60 New Age 68 Teck 9
BC Iron 17 Newcrest 20, 50 Timpetra 68
Beadell 68 Hannans 64 Northern Star 8 TNG 67
Berkeley 68 Havilah 37 Triton 4, 5, 38
BHP Billiton 7, 15, 41 Highfield 40-41 OceanaGold 20 Troy 60-61, 68
Buxton 68 Horseshoe 68 Oz Minerals 27, 31-33, 39 Tyranna 33, 68
Carpentaria 12 Iluka 30 Panoramic 9 Vale 17, 58
Centrex 44 IMX 68 Paradigm 68 Valence 4, 5, 38
Chevron 28 Investigator 35 Peak 57 Venture 68
Consolidated Tin 68 Iron Road 36 Perilya 67 Vimy 67
Crusader 68 Ivanhoe 50 Pilbara Minerals 16
Plymouth 45 Waterberg Coal 7
Dacian 68 Kibaran 5 Primary Gold 68 Windimurra 68
Diatreme 52 Kinetiko 68 WCP 68
Diversified 19, 22 Kingsgate 19-23, 25 Queensland Nickel 46 WPG 19-25
Doray 66 Kitchener 49
Regal 68 Xanadu 68
Eldorado 64 La Mancha 49 Renaissance 68
Elemental 42, 45 Lincoln 5 Resgen 7
Emerald 68 Resolute 20
PAGE 70 APRIL 2016 AUSTRALIA’S PAYDIRT
Process Design & Feasibility Studies
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