pd265-Oct18-mag-web

WWW.NICKELMINES.COM.AU

Australia’s
Newest Listed
Nickel Company

NICKEL MINES (NIC) IS AN AUSTRALIAN COMPANY NEWLY LISTED ON
THE ASX ON THE CUSP OF BECOMING A SIGNIFICANT PLAYER IN THE
GLOBAL NICKEL INDUSTRY.
In collaboration with Shanghai Decent, a group company of Tsingshan,
the world’s largest stainless steel producer, Nickel Mines will build, own
and operate Nickel Pig Iron (NPI) processing capacity within the Indonesia
Morowali Industrial Park (IMIP) with its NPI serving as feedstock to
Tsingshan’s fully integrated 3MT per annum stainless steel operations.

INVESTMENT HIGHLIGHTS - WHAT’S ON OFFER

STRATEGIC PARTNERSHIP WITH A GLOBAL INDUSTRY LEADER

• Collaboration and Subscription Agreement (CSA) executed to build,
own and operate an initial 2 RKEF lines producing c.16.5kt of nickel metal per annum.

• MOU signed for an additional 2 RKEF lines.
• Tsingshan has made a substantial investment into Nickel Mines and

is now the Company’s largest shareholder.

PROVEN LOW COST CONSTRUCTION AND PROCESSING TECHNOLOGY

• Industry low levels of capital intensity for the construction of nickel capacity.
• First quartile NPI operating costs resulting from the ability to source abundant supplies

of high-grade nickel ore and cheap thermal coal for reliable power generation.

ABILITY TO LEVERAGE IMIP INFRASTRUCTURE

• The IMIP is a fully permitted industrial zone jointly sanctioned by the Indonesian
and Chinese Governments;

• The IMIP is the largest vertically integrated NPI/Stainless Steel facility in the world
supported by world class infrastructure and logistics featuring an on-site coal fired
power station, substantial port facilities and 5-star guest hotel.

STRENGTHENING NICKEL MARKET FUNDAMENTALS

• Nickel demand expected to grow 2-3% over medium to long term underpinned by
improving outlook for stainless steel and growing EV battery market;

• Wood Mackenzie Ni price outlook – peaking at ~US25k/t in 2025 before settling at a
long term price of ~US$22k/t

WORLD CLASS NICKEL RESOURCE

• Nickel Mines also hold an 80% interest in the long-life, high grade Hengjaya
nickel mine located in Morowali Regency, Central Sulawesi, Indonesia just 12
kilometres from the IMIP;

• The Hengjaya mine hosts a JORC compliant resource of 37.5 million dry metric
tonnes at 1.81% nickel (~680,000 tonnes of contained nickel metal).

Level 2, 66 Hunter Street Sydney, NSW 2000
[email protected]

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 101

BOOK REVIEW

An Timing is everything and it was perhaps a above all stories related to the base metal,
touch fortuitous that the release of Aus- he said.
tralia’s Nickel Adventure by Ross Louthean
“I came from the back-end situation, as
adventure and Carl Knox-Robinson was delayed until a journalist I had been in places like Whya-
2018. lla and Port Pirie, so I saw the ship building
and steel works and the zinc processing
Three years in the making, the book plants. Coming to Kalgoorlie I was actually
documents in fine detail the heady days of going to see mining, as I didn’t get to Broken
Hill in my time in South Australia, so it was a
with the nickel uprising in Western Australia’s fabulous insight into the Kambalda develop-
Kambalda district in the 1960s to the boom ment,” Louthean said.
and bust period of the 1970s, all the way
through the base metal’s “erratic health “I had a lot of support, even in those days
a lot of mining people didn’t trust journalists
Louthean graph” to the present day. and they didn’t talk to them. It is a bit of a dif-
For many familiar with Louthean, not ferent story today where they open the door
and offer you a drink. John Oliver really
much gets past the storied journalist, but opened my eyes to a few things, including
even he who thought he knew everything understanding what decline mine develop-
ment was all about, which was new at the
there was to know about the nickel caper time in WA and really became the norm.”

found himself on a pathway to discovery As Louthean came to grips with what real
mining was all about, he built a solid net-
when putting together Australia’s Nickel Ad- work of contacts and thick skin to ride the
ebbs and flows of the mining game.
venture.
Upon reflection, he says that the 50th an-
“Being a smart-arse I thought I knew just niversary of nickel mining in Kambalda was
far from celebrated considering where the
about everything about nickel, having ex- sector was at in 2016.

perienced what I thought was the start of “The 50th anniversary of Kambalda coin-
cided with people being sacked. It was only
it all, but it wasn’t. The people that came the Long shaft left in operation and that was
really a low point for the industry, I think,”
forward with material was fabulous and all he said.

the people that contributed, either through Such is the fickle nature of the mining, the
low point Louthean recalls has been quickly
interviews, photographs or data, has made followed with a high point for industry in his
mind.
the book what it is,” Louthean told Paydirt.
“I think the recent recovery is definitely
Having taken up a cadetship in Whya- a high point, because a lot of people were
saying two things: Nickel was dead or that
lla, South Australia, and then being picked pig nickel was going to take over and heav-
en help all of you,” he said.
up by ABC Regional News in Port Pirie,
“The recovery has come largely through
Louthean returned to Western Australia the fact that people still need quality grade
nickel for good stainless steel and the evo-
with the ABC and was stationed in Kalgoor- lution of EVs and battery metals, which is of
course ongoing, and I’d suggest that most
lie in the late 1960s, just as the nickel sector people don’t yet know what metals are go-
ing to make up the batteries of three dec-
was set to flourish in Kambalda. ades away.”

Therefore, there are few better to recol- The EV and battery future is gathering
momentum and the platform for Australia’s
lect an important part of Australia’s min- Nickel Adventure Part II – Louthean says he
is not writing it – which will no doubt feature
Hot off the press: Ross Louthean with one ing history, particularly around Kalgoorlie more stories from the Fraser Range.
of the first copies published of Australia’s which was found to have more than just a
golden heart. “I think the Fraser Range is going to be
Nickel Adventure at Diggers & Dealers one of the great mineral belts of the world.
2018. Louthean, founder of Paydirt Media, Popular industry man Ron Manners per- You have a great gold mine out there, a
haps summed up Kambalda’s nickel-rush fabulous nickel copper mine and there is
co-authored the book about Australia’s best in 1990 at the 20th reunion of the Po- a lot of exploration taking place and there
nickel history with Carl Knox-Robinson seidon NL boom when he said that period are a lot of unknowns out there. That was
the area of course the lower Fraser Range
of time meant things “will never be quite the where the first nickel exploration took place
way back,” Louthean said.
same” for Kalgoorlie.

In the book, Louthean said that particular

gathering was one of the most memorable

occasions hosted by the Hannans Club, as

many of the key players in the Poseidon

boom had attended.

While nickel mining in Kambalda has

been in dicey situations and has often clung

to existence, for Louthean seeing a nickel
“ industry developed in the region stands out
Kalgoorlie has had some low spots during our 97-
year history, but the sheer impact of the Poseidon
boom of 20 years ago has guaranteed that things will
never quite be the same again. It was the catalyst that
brought 350 companies to Kalgoorlie in search of nickel
and at that time there were 480 geologists based in
Kalgoorlie – more than in any other city in the world.
– Ron Manners
– Mark Andrews

PAGE 102 OCTOBER 2018 AUSTRALIA’S PAYDIRT

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 103

NICKEL PREVIEW

Nickel Mines brings
flavour to ASX
Justin Werner

In the face of steeply falling nickel prices, el hopefuls on the ASX is Nickel Mines. “The key message that is emerging
Nickel Mines Ltd pulled off one of the In August, the company locked away from the conference is that Indonesia is
largest IPOs in Australia’s mining space $200 million to drive its ambitions in the emerging and will be the dominant nickel
for some time. Indonesian nickel space. force moving forward, particularly when
you look at the Tsingshan investment
Jupiter Mines Ltd’s $240 million float “Nickel has come off a bit, but the sen- and other investments planned,” Werner
for its manganese interests in South Af- timent here and what is happening in said.
rica was not only indicative of the sen- Indonesia is still pretty positive,” Nickel
timent gravitating back towards mining Mines managing director Justin Werner The backing of Tsingshan Group’s
stocks in 2018, but also a sign of growing told Paydirt from Jakarta. Shanghai Decent Investment Co Ltd
demand in the steel sector. (11.6%) and a cornerstone investment
“We came into a softer nickel market by Shanghai Wanlu Investment Co Ltd
Nickel, also a key ingredient in steel and there’s a few things playing out in (10.8%) differentiates nickel pig iron
and stainless steel, was in deficit in 2017 terms of the trade wars and things, but (NPI) player Nickel Mines in the market.
with the situation likely to be amplified traction for us has been pretty positive
again this year, bringing nickel players given this is an Indonesian project. Nickel Tsingshan is China’s largest stainless
back in vogue. Mines is the second largest mining IPO steel producer and while many compa-
in 10 years and we’re in Indonesia with nies shunned Indonesia in 2014 when
The Mark Creasy-backed Galileo Min- Chinese partners, so certainly in this part the country’s Government imposed
ing Ltd (Fraser Range) and Ian Middle- of the world we have been well received.” export bans of unprocessed material,
mas and Rob Behets’ Constellation Re- Tsingshan supported the idea.
sources Ltd (Fraser Range) are behind Werner spoke to Paydirt in light of at-
some of the fresh-faced nickel compa- tending the 6th Asian Nickel Conference Tsingshan established processing fa-
nies on the bourse. hosted in Jakarta and reported strong in- cilities in country and turned the Indone-
terest in the company’s story. sian Morowali Industrial Park (IMIP) into
Joining some of the new breed of nick-

Capital Group

AFSL 291385

PCF Capital Group congratulates its clients on the
completion of the transactions outlined below.

Corporate Facility $150.0M

Advisor to Gold Road on corporate working 2018
capital and revolving debt facilities

Lithium Royalty Corp Royalty Acquisition $11.0M

Advisor to LRC on the acquisition of a 2018
royalty over the Mt Cattlin Project

Project Finance $50.0M

Advisor to Image on project nance for its 2018
Boonanarring Mineral Sand Project

Project Acquisition & Finance

Advisor to AAMC on its proposed acquisition Undisclosed
and nancing of the Wonmunna Iron Ore Project 2018

Project Divestment $12.0M

Advisor to Minjar on the sale of the 2018
Kirkalocka Gold Project

Project Divestment $18.5M

Advisor to Gold Fields on the sale of the 2017
Darlot Gold Mine

Level 3, 8 Colin Street, West Perth WA 6005, T: +61 8 9486 7111
www.pcfcapital.com.au

PAGE 104 OCTOBER 2018 AUSTRALIA’S PAYDIRT

Nickel Mines’ 80% owned Hengjaya nickel mine – 37.5 dmt @ 1.81% nickel for 680,000t
contained metal – is 12km from the Indonesian Morowali Industrial Park

a significant NPI and stainless steel hub. lite ore from Hengjaya would be the pre- done via proceeds from the former’s IPO.
Tsingshan’s commitment to Indone- dominant source of feedstock to a two- There is a 12-month call option from
line rotary kiln electric furnace (RKEF)
sia and growing feedstock requirements plant in the IMIP. the date of first NPI production for Nickel
spurred Nickel Mines into action during Mines to wholly own the RKEF plant for
2015 at the Hengjaya nickel mine, Cen- Nickel Mines and Tsingshan will col- an additional $US120 million.
tral Sulawesi. laborate in the funding and construction
requirements of the RKEF which will pro- “We are really more of an industrial
Hengjaya, within the Morowali Regen- duce at a rate of 150,000 tpa NPI for a company than a mining company and
cy, is 100%-owned by locals PT Heng- total 15,000 tpa nickel metal. the Nickel Mines name is probably a bit
jaya Mineralindo (PTHM), of which Nickel of a misnomer. We started with the intent
Mines has an 80% interest in. Nickel Mines recently upped its stake of just being a miner, but Tsingshan has
in the RKEF plant to 60% by acquiring certainly demonstrated and shown that
Last year, Nickel Mines and Tsingshan a further 35% in Hengjaya Holdings Pri- there is value-add and benefit from rath-
entered a collaboration subscription vate Ltd for $US70 million, which was er than just selling ore where you are get-
agreement, whereby high-grade sapro-

CASHED UP NICKEL EXPLORER

High grade nickel sulphide resources
at shallow depth in WA’s northern
goldfields – 4.8 Mt @ 2.0% Ni for
91,000t Ni

Fisher East
Collurabbie
Large mineral systems each over
10km in strike
150km from established
infrastructure
Improving nickel price
Cash & receivables of $14 million

WWW.R OX R ES O U R C E S.CO M .AU

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 105

NICKEL PREVIEW

ting about 15% of the value of contained Werner hoped to have a definitive opportunity for us to participate in those.
nickel versus upgrading into nickel pig agreement signed in the near future, There is also an opportunity with the ex-
iron where you are getting 97%. There which will take output to 30,000 tpa nick- isting 20 lines to find a home in Nickel
is clear value-add there and significant el metal. Mines and those are producing 150,000t
economic advantage to doing that pro- nickel metal,” Werner said.
cessing,” Werner said. Tsingshan already has 20 lines in op-
eration, with Werner saying there is po- “We have real growth optionality and
Having committed to building two tential for more to come on stream and that growth can come extremely quickly.
RKEF lines together, there is a MoU in further involvement for Nickel Mines. It is not something where we have to go
place between Nickel Mines and Tsing- out and drill and take the risk in finding
shan to cooperate in another two lines. “They are building an additional six additional resources. The nickel capac-
lines outside of that so there will be an ity is already there and we think that is
really what differentiates us from every
other nickel producer out there which is
reliant on the mine [expansion] from the
mine that they have.”

While Nickel Mines has a different
story to tell, the backdrop in which it is
courting interest in the market like many
of its peers is the same.

Declining nickel supply coupled with
robust stainless growth overlayed by the
EV thematic are the fundamentals Nickel
Mines is driving home to the investment
community.

“There is a bit of education required on
nickel pig iron production from the rotary
kiln furnace, but what is emerging is that
NPI is the prominent feedstock for stain-
less steel and stainless steel is about
70% of all nickel usage,” Werner said.

“Growth is still there and with Tsing-

PAGE 106 OCTOBER 2018 AUSTRALIA’S PAYDIRT

shan establishing the world’s largest,
lowest cost vertically integrated plant in
Indonesia we have set the benchmark.
And, for anyone that wants exposure to
Tsingshan the only way to do that is via
Nickel Mines. We offer good exposure to
that opportunity. Sulphide production is
declining and has been declining for the
last number of years.”

Werner said Nickel Mines was very
much a part of Tsingshan’s future and
welcomed the opportunity to strengthen
ties with the company.

“I think both sides are very proud of
the agreement we have reached and it
was called a collaboration subscription
agreement and that was really what it
has been,” he said.

“It is a collaboration, it wasn’t an agree-
ment that was quickly drafted over a se-
ries of weeks. It came out of the culmi-
nation of a couple of years of working
together in terms of us supplying them
some ore. Tsingshan is familiar with who
we are and the skills and expertise we
have. Nickel Mines’ listing brought ben-
efits to both parties without either party
feeling they were hard done by or on top.”

– Mark Andrews

Commissioning of the RKEF plant is scheduled in the June quarter 2019

NiWest Project: Leading the way in integrated
production of nickel and cobalt battery inputs

Highest grade undeveloped nickel laterite project in Australia
Direct production of battery-ready nickel and cobalt sulphates
Heap leaching via existing, proven methods with high recovery rates
Outstanding PFS results and forecast economics

W W W. G M E R E S O U R C E S . C O M . A U ASX: GME

AUSTRALIA’S PAYDIRT SEPTEMBER 2018 PAGE 107

NICKEL PREVIEW

Cassini orbiting into PFS in 2019

Two years on from attracting the in- In the meantime, 50 people and six rigs
terest of Oz Minerals Ltd, Cassini
Resources Ltd’s belief in the West Mus- are in operation on site at the West Mus-
grave nickel-copper sulphide project has
been further endorsed by high-net worth grave project as work intensifies at the
investors from Asia.
Nebo-Babel deposits, with a PFS sched-
Despite plummeting nickel prices and
poor sentiment towards junior compa- uled for completion in 2Q2019.
nies, a major shareholder in one of Chi-
na’s largest battery electrolyte manufac- Infill resource drilling of 40,000m will
turers – Tinci Materials – corner-stoned
Cassini’s $4.2 million placement in Au- be part of the PFS with the potential to
gust.
add higher-grade extensions to the exist-
While earn-in/JV partner Oz is fund-
ing studies at West Musgrave and is the ing resource.
sole funder of the project to delivery of
a BFS, the placement provides Cassini The resource drilling will ultimately
with working capital and clout to explore
early-stage projects in its portfolio, such build confidence for the company ahead
as West Arunta, Yarawindah Brook and Mt
Squires in Western Australia. of a maiden reserve announcement at

“We have underlying value that is being Nebo-Babel, which is one of the most ad-
funded by Oz and now we can also run
our own exploration and keep the market vanced nickel-copper sulphide projects
engaged with the upside we have with our
exploration projects,” Cassini managing di- anywhere in the world.

“There are only two or three similar

type of projects like this in the world, with
Richard Bevan the copper and nickel sulphide of scale

rector Richard Bevan told Paydirt. like this,” Bevan said.
Access to and then a mechanical break- “This will open up a new frontier and

down of a drill rig prevented an early at- lowers the threshold for other parties com-
tempt by Cassini to get busy at West ing into the area as they will have more in-
Arunta earlier this year, however, Bevan is frastructure out there making costs lower
hoping to have another crack at the zinc for them,” Bevan said of the potential Cas-
project in the near future. sini and Oz will open up if the West Mus-
grave project is a success.

Dawn of a New Nickel Era

Restoring Kambalda’s Pre-eminent Position in Nickel

• Dominant Kambalda land position, a world-class nickel-gold mining district
• High Grade Nickel Mineral Resources of 118,000 tonnes of contained nickel
• Nickel programs underway to re-establish nickel mining
• Gold mining cash flows

PAGE 108 OCTOBER 2018 AUSTRALIA’S PAYDIRT

One of the lingering question marks on Exploration success is being delivered at Yappsu, about 6km east of Nebo-Babel.
the 1mt nickel and 1.1mt copper Nebo-Ba- Meanwhile, a near-mine discovery at Nebo was reported, with one intersection of 5.6m
bel deposit has been whether the metal- @ 2.68% nickel, 2.09% copper, 0.09% cobalt, 0.33 g/t PGE within 50.35m @ 0.62% nickel,
lurgy stacks up.
0.54% copper, 0.02% cobalt, 0.15 g/t PGE
While Nebo-Babel was previously an
asset of WMC and then BHP Ltd prior to ive JV partner and cashed-up investors nickel and people are investing in funda-
Cassini’s acquisition of it in 2014, Bevan prepared for the long game at the West mental demand for those, they are not in-
said not a great deal of met test work had Musgrave project. vesting in the day-to-day prices for those
been completed in the past. metals. We are in a good position and we
“With nickel stockpiles going down, pri- started the PFS before [services] costs
“It has always been a matter of getting mary stainless steel driving demand and started to tighten and I think we’ll be hitting
the metallurgy right. Prior to Cassini, not the blue sky ahead in the EV sector in the production at the right time in the middle
much met work had been done, but now next few years, they believe the sulphide of 2022.”
we have done a lot of met testing in differ- [nickel and copper] development space is
ent areas of the orebody which has largely the place to be in,” Bevan said. – Mark Andrews
de-risked the project,” Bevan said.
“We have as much copper as we do
“It is a big-company PFS we are doing
and the deal we did with Oz has allowed us
to be funded through this period without di-
luting shareholder value. But, it is not only
the funding [a three-stage deal worth $36
million] it is the technical capacity of Oz
also. We find they have the same attitude
as us; they want to get into production as
quickly as possible. They have the attitude
of looking after their partners because
they want to be a partner of choice, which
is part of their growth strategy.”

Upon completion of the PFS, Cassini will
have better visibility on funding require-
ments, but for the moment it can bide its
time comfortably knowing it has a support-

Emerging Class 1 Nickel Producer

poseidon-nickel.com.au

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 109

NICKEL PREVIEW

Legend status in the making

Led by Independence Group NL and ing created and if you look at the market the south.
the Creasy Group, exploration in the reaction to Creasy’s Southern Knights As well as Independence and Creasy
Fraser Range will intensify in the next 12 discovery and IGO’s exploration report,
months. there is certainly new information.” Group, new floats Galileo Mining Ltd and
Constellation Resources Ltd are other
Since the Nova discovery in 2012, pro- Legend itself is a significant player companies in the Fraser Range suburb
spective nickel companies have been in the region, particularly in the “Fraser but Wilson believes Legend has the “big-
unsuccessful in the hunt for a look-a-like Zone”, as Wilson describes it, which is a gest block on the best street”.
in the Fraser Range. With the benefit of section of the Fraser Range encompass-
mining at Nova, Independence is build- ing Tropicana in the north and Nova in Legend owns 100% of an exploration
ing intimate knowledge of the Fraser area totalling 2,792sq km, which is being
Range and has consolidated its position Mark Wilson picked apart systematically.
to occupy 15,000sq km of ground in the
region. In mid-September, Legend had just
started a 32sq km moving loop EM sur-
Along with a large landholding, which vey over Area D at its flagship Rockford
does not include the Tropicana gold project which was expected to take about
mine, Independence has a big budget for a month to complete.
exploration with $30 million dedicated to
the Fraser Range in the next 12 months The current exploration activities at
or so, while Creasy will spend $10 mil- Area D followed aircore drilling at the
lion also on exploration during the same prospect in August, which Legend ex-
period. tended further into its portfolio to satisfy
security of tenure conditions.
“People just don’t spend that amount
of money without exploration success,” Wilson said he hoped to be back with
Legend Mining Ltd managing director a diamond rig at Area D before the end
Mark Wilson told Paydirt. of the year and encouraged sharehold-
ers to stay the course with the company.
“There is certainly new information be-
“We are very loathe to do the next
programme until this one is finished

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PAGE 110 OCTOBER 2018 AUSTRALIA’S PAYDIRT

Legend has access to service providers with the necessary experience At the time of print, Wilson said there
of exploring Western Australia’s Fraser Range was some interest in the company from
European investors who believed the
[MLTEM]. We like to have the full story nickel space, with concerns on trade nickel sector was a good spot to be in for
in hand and Area D is not the only thing wars and tariffs between some of the the next 12-24 months.
we have in our package. We are still very world’s biggest economies knocking
hopeful of doing a meaningful diamond base metals prices in general around. “They are certainly interested in nick-
drilling programme in the back end of el, despite the diminishing nickel price
2018,” Wilson said. However, with LME nickel stockpiles of the last 60 days. The trade wars and
diminishing and steady demand for tariffs have rattled traders and nickel
A rise in nickel price will also be timely stainless steel, the market fundamentals has gone from $US7.20/lb to $US5.60/lb
by then for Legend and its peers in the for nickel are strong, and Wilson is not despite stockpiles going down. The bal-
the only one convinced. ance of supply is very much in deficit, not
a surplus,” Wilson said.

Legend enjoyed positive share price
movement in the early part of the year
and reached a five-year high before
macro-economic factors took the com-
pany – and many of its peers – back
down a rung to 3.8c/share at the time of
print.

“The market is sophisticated enough
to recognise and reward exploration suc-
cess,” Wilson said.

“I still think it is also a suspicion of the
geophysics and the market wants to see
hard results in mineralisation from drill-
ing. Nickel prices would help, but it is
also about getting good numbers from
drilling.”

– Mark Andrews

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AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 111

NICKEL PREVIEW

Metminco charges into
Solomon Islands

Metminco has added a nickel project to its portfolio, which includes gold in Colombia

Aflat gold price and strong fundamen- gence and a $3 million equity raising by “It’s a good entry point into the battery
tals underlying positivity in the nickel Metminco, a JV with a representative minerals space, with about 470-odd holes
sector has seen Metminco Ltd swoop on (Nelson Kile) on behalf of the Jejevo land- and data points to work with. There has
an opportunity to acquire the Jejevo DSO owners will be executed. been a lot of work gone into accessing
nickel laterite project in the Solomon Is- the mineralisation and preliminary inter-
lands. Metminco will carry the JV until produc- nal conceptual studies done on it,” Wilson
tion is commissioned on any project on a said.
The proposed 100% acquisition of Sun- tenement held by the Sunshine subsidi-
shine Minerals Ltd, the private company ary of which Nelson Kile holds 20%. “It is a manageable project for the size
with an 80% interest in Jejevo plus a pros- of capitalisation of our company.”
pecting licence over the Tausere bauxite Metminco executive chairman Kevin
project, was announced by Metminco last Wilson told Paydirt that Jejevo was an at- The potential DSO opportunity in front
month. tractive opportunity considering the level of Metminco is a 10-15mt @ 1.1-1.3%
of work put into the project by the likes of nickel operation from within 12m of sur-
Subject to the completion of due dili- previous owners Sumitomo and INCO. face.

Greenland

Why explore in Greenland? Solutions for every stage
of the mine life-cycle.
• conduit- and komatiite-hosted Ni mineralizations
• similar geology to Australia and Canada • Exploration
• free exploration-relevant data • Development
• pro-mining government and public • Construction
• no first nations land rights issues
• deep-water fjords for direct shipping

Want to know more?
Come and meet with us!

Paydirt Nickel Conference Perth, 23 Oct 2018
Greenland Day, UWA University Club Perth, 24 Oct 2018
AME Roundup, booth 516/518 Vancouver, 28-31 Jan 2019
PDAC Convention, booth 417 Toronto, 3-6 March

Ministry of Mineral resources • Production
Government of Greenland
Through our ERP, BI and Production management
Website: www.govmin.gl solutions, we can partner with your business to
Geo-Data: www.greenmin.gl meet your mining objectives.
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www.scopesystems.com.au
E-mail: [email protected]

PAGE 112 OCTOBER 2018 AUSTRALIA’S PAYDIRT

Sumitomo has completed most of the more familiar with Metminco’s exploits style near surface mineralisation at Teso-

diamond drilling at Jejevo since its in- across its Quinchia gold portfolio where it rito – 384m @ 1.01 g/t from 16m and 64m

volvement back in 2012/13, giving Met- has conducted 40,000m of drilling across @ 1.67 g/t from 144m, including 253m

minco a good chance to hit the ground the likes of Miraflores and Tesorito. @ 1.01 g/t from 3m – complements the

running if it moves ahead with project A feasibility study on Miraflores was 880,000oz resource at Miraflores.

acquisition. “It’s a mineral camp/field that has

The company plans to have a delivered a lot of gold,” Wilson said.

maiden resource estimated within One thing that could hang

its first year at Jejevo, which will be Metminco’s projects together in

the basis for submitting a develop- Quinchia is certainty around a

ment plan for a mining licence and JV with AngloGold Ashanti Ltd at

an updated EIS in the following 12 Chuscal.

months. An option agreement between

Should Metminco hit its intended Metminco and AngloGold has been

milestones, financing and develop- exercised, with Wilson hoping to

ment could start in year three of its complete discussions pertaining

involvement at Jejevo. to a JV at Chuscal in the next 4-6

By then, nickel’s role in the bat- weeks.

teries and EV market will be well “We will be pushing forward on

defined and Metminco leveraged to two fronts – nickel and gold – with

participation in those sectors. one of the priorities to complete dis-

“The gold price should be much cussions with AngloGold at Chus-

higher than it is, but the fundamen- cal,” Wilson said.

tals for nickel are strong if you be- Wilson said he was buoyed by the

lieve in EVs like I do,” Wilson said. The advanced Jejevo DSO nickel laterite project has lured success artisanals were having at
Not only will Jejevo give Metmin- Metminco to the Solomon Islands Chuscal, while a significant gold in
soil geochemical anomaly over un-
co exposure to the EV market, it will

also give the company a diversified port- completed 12 months ago, based on derground artisanal workings was indica-

folio which is currently weighted to gold in proven and probable reserve estimates tive of the project’s potential.

Colombia. of 4.32mt @ 3.3 g/t for 457,000oz gold, – Mark Andrews
ASX observers would probably be while promising gold-copper porphyry

Building an Australian
base metals company

DEVELOPING AUSTRALIA’S LARGEST NICKEL + COPPER SULPHIDE PROJECT

» Flagship West Musgrave Project development funded by Joint Venture with
ASX100 partner OZ Minerals Ltd

» Nebo-Babel Prefeasibility study to be delivered Q2 2019:

- Large JORC resource with >1Mt contained Ni and >1.1Mt contained Cu
- Open pit, low cost, long life mine
- High quality product for EV and battery market

» Regional exploration programs delivering value ASX:CZI FWB:ICR
» Progressing Cassini owned projects in gold, zinc & nickel-copper-cobalt in WA

T: +61 (0) 8 6164 8900 // [email protected] // www.cassiniresources.com.au

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 113

NICKEL PREVIEW

Axiom sailing into Ryan Mount
shipping

Axiom Mining Ltd has been handed a it will be, upon full production, the sin- owners,” Mount said.
country-shaping mining lease at the gle biggest component of GDP, so for a Axiom hold 80% of Axiom KB with lo-
Isabel nickel project in the Solomon Is- country like the Solomon Islands it is very
lands. significant.” cals owning the remaining 20%. Mount
said the key to doing business in the Solo-
The mining lease, issued for a period Axiom’s share price shot up 44% to mon Islands was being based in country.
of 25 years allowing for the extraction, 14c/share when the announcement to
export and sale of nickel ore and other market was made on September 20, with “It is important to have a full under-
associated commodities, was granted to the company also reporting financing for standing of not just the legislation, but
Axiom’s subsidiary – Axiom KB Ltd – for life-of-mine construction and develop- also the cultural setting of the business
activities at the San Jorge deposit. ment due to be finalised in the coming dynamic and the province of where you
weeks. First shipment of DSO laterite ore operate,” he said.
“This is significant for the Solomon Is- from San Jorge is expected in Q1 2019.
lands, as I believe it’s the most valuable Mount added that despite softening in
mineral deposit in the country. It has been “Whilst it has taken quite a long time to the nickel price of late, the future looked
widely known about and was discovered get to this point, we’ve been quite confi- strong for the sector.
in the 1950s by BHP and INCO, but this is dent in our position with key stakeholders,
the first time that a mining lease has been particularly the land owners of the project “I think overall the medium to long-term
issued over this project,” Axiom chief ex- and community in general. That has been bodes extremely well for nickel produc-
ecutive Ryan Mount told Paydirt. proven over the last few months with en- ers, in particular ourselves by not having
vironmental approvals and a mining lease any constraints on who we can sell to and
“It is the first time it has been available and approvals from the indigenous land what type of product we are able to sell,”
to be commercialised. We do believe Mount said.

– Mark Andrews

Nickel ach nickel
Copper

Gold

Tarraji/Yampi Ni-Cu-Au

• Large scale Ni-Cu-Au opportunity - extensive
Cu-Au gossans

• Numerous high quality drill targets with
EIS funding - EM and Magnetics over
Ruins Dolerite

• Extensive WW1 copper workings with no
modern exploration since 1950’s - locked up
as Defence Reserve

• Strategic ground position - Buxton
Resources (ASX:BUX) and IronRinger control
regional Ruins Dolerite

• 695km2 of granted leases - 95kms NE
of Derby, WA

• Private group moving to ASX listing

ironringer.com.au

PAGE 114 OCTOBER 2018 AUSTRALIA’S PAYDIRT

WESTERN AUSTRALIA’S

Premier Nickel Company

• Strong safety and environmental culture
• Independent nickel sulphide producer in Australia
• Low cash cost Nickel producer in Australia and is debt free
• Further exploration success at the Cosmos Neptune target
• Mill Recovery Enhancement Project completed and operational
• Positive PFS results for Odysseus project

www.westernareas.com.au

ASX: WSA Perth Office: +618 9334 7777 Email: [email protected]

NICKEL PREVIEW

St George prepares fireworks

Perhaps a fair reflection of the upbeat soon, I think.” hit last year, but we are having so much
mood nickel players are in at the mo- As it has done consistently in the past encouragement now at Investigators.
ment is the excitement in St George Ltd Whatever resource we were going to have
executive chairman John Prineas’ voice. few years, St George was drilling again at at Stricklands is probably going to be tri-
the time of print. pled with continued success at Investiga-
Usually quietly spoken, Prineas was tors,” Prineas said.
particularly chirpy when Paydirt spoke to In mid-September, drilling at Mt Alexan-
him ahead of this year’s Australian Nickel der – the 75:25 JV with Western Areas Ltd, “We don’t necessarily want to rush into
Conference. near Leonora – highlighted that massive it. People value you off your first resource
nickel-copper sulphides were intersected and we don’t want people to underestimate
“We are hopeful of some dramatic re- in hole MAD114 at Investigators. XRF val- our potential value because we could quite
sults coming out in the next month or two ues from the hole averaged 7% nickel and easily multiply it.
and hope to have some really explosive 5.5% copper, with lab assays pending.
action in our share price,” Prineas said. “We know there are a lot of people
“We are now testing the depth exten- watching us. They know we have a very
Prineas’ optimism came amid a nickel sions in a north-westerly direction, we only good quality project.”
price plunge after the metal experienced started doing that one month ago and al-
some favouritism in the market in the early ready we are having terrific success and Prineas is hoping a couple more hits to
part of 2018. extended one of the sections at the Inves- extend the mineralisation on the northerly
tigators prospects 320m down plunge.” plunge will start to showcase the potential
“This is a short-term correction,” he said. tonnages at Mt Alexander.
“Sulphides are coming in greater demand Prineas said the company was find-
and attention and we are seeing that with ing fantastic down-hole EM conductors, “There could be a very significant com-
the car battery manufacturers coming to with drilling under way at one of them – mercial operation being fleshed out but we
Western Australia, trying to secure supply MAD111. need a couple of really good hits and away
and even talking to us, and Black Mountain we go,” he said.
wanting to secure nickel sulphide assets. Prineas said there was no hurry to
They can see a very big seismic change push out a resource, particularly given the - Mark Andrews
and are trying to position themselves and warmth being felt in the market.
that will filter through to the nickel price
“We are thinking to start drilling out the
Stricklands area where we had a fantastic

PAGE 116 OCTOBER 2018 AUSTRALIA’S PAYDIRT

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NICKEL PREVIEW

Super three years
ahead at Nova

IGO has forecast 27-30,000t nickel-in-concentrate and 11-12,500t
copper for FY2019 at cash costs of $1.65-$2/lb from Nova

Amid-year production slump apparently Nova’s best but with throughput consist- “It became apparent during the June
behind it, Independence Group Ltd ently running 20% above the 1.5 mtpa ca- quarter that we needed more high-quality
(IGO) is growing increasingly confident pacity, Bradford believes the outlook for the water to run at 1.8 mtpa,” he said. So, we
about the immediate future at its Nova nick- mine could change over the coming year. need to improve reverse osmosis for the
el mine in Western Australia. potable water because we use that to wash
“We fully expect to reshape Nova which the concentrate to get a better payability.
IGO missed guidance for Nova’s first full will lead to further changes,” he said.
year of commercial operation, producing “At the faster run rate we were also los-
22,258t nickel-in-concentrate for FY2018 The overachievement has come from ing copper recoveries so we have to work
against a forecast of 23-27,000t but the eliminating bottlenecks both underground on improving the tankage on the copper
mine’s 23% quarter-on-quarter improve- and at surface but with these largely over- flotation to maintain copper at the higher
ment during the June period has manag- come, Bradford is keen to see consistent throughout. During FY2019 we should
ing director Peter Bradford comfortable the over performance. deliver 1.8 mtpa on a consistent basis but
mine is progressing to plan. guidance will be based on 1.5 mtpa so
“We treated the June quarter as a trial there is a huge amount of elasticity.
The company has forecast 27-30,000t period and ran at 1.8 mtpa underground but
nickel-in-concentrate and 11-12,500t cop- we always felt we should get there but it has “The higher rate gives us better econo-
per for FY2019 at cash costs of $1.65-$2/ been about demonstrating it and getting the mies of scale so we will also go back to
lb. However, the greatest improvements will systems of work optimised,” he said. resource and look at the low-grade blocks
come in development capex which will re- and ask whether they can be in the reserve.
duce from $53.9 million in FY2018 to $25- Nova general manager Chris Carr said There is a low-grade halo which sits over
28 million for the current year as IGO com- the company was close to proving it had the top but we want to do it now because
pletes the majority of Nova’s development. eliminated the early teething problems. with a flat lying orebody it would be prob-
lematic to mine that later after you’ve taken
“Nova is unique as an underground mine “We only had limited mining fronts open the good bits out.”
because all the development capital is at the start which restricted our options,” he
spent upfront and by the end of FY2018 a told Paydirt. “Now, we have enough fronts Carr said the recent performance ben-
substantial amount of the development had open we have some flexibility.” efited from a motivated workforce of both
been completed with the last to come in the employees and contractors.
September and December quarters,” Brad- Carr said the benefits of much of the work
ford said. “Once that is done, all stoping ar- completed in the last six months would not “We have an excellent relationship with
eas will be available and we can cherry pick become apparent until later years. our mining contractor Barminco,” he said.
for development. With the development fin- “In fact, it is the best relationship I’ve had
ished, free cash flow increases significantly “You need to start development with an with a contractor over my career. We are
in coming years.” end in mind. The mine plan should be fully always willing to work together and are
fit for purpose for the life of mine. That is not constantly waving the contract in each
That trend should continue throughout what we are doing and there has been a lot other’s faces.
Nova’s eight-year mine life. of work going on behind the scenes that,
unless you are an underground miner, you At a time when the labour market is heat-
“Typically, underground development would realise the importance of.” ing up, Carr believes Nova will retain its best
capital increasingly erodes free cashflow asset; its workforce.
but at Nova, cash costs and all-in costs will Challenges still remain. Until the start of
come very close together, especially from September, the mining team was struggling “The operation has a good vibe; we have
December.” to get the right volume of paste back into the right people in the right jobs from the
the underground voids and SAG mill liner leadership down,” he said.
The next three years are planned to be failures slowed down the plant. Bradford
said the on-site team continued to pursue – Dominic Piper
further answers.

PAGE 118 OCTOBER 2018 AUSTRALIA’S PAYDIRT

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REGIONAL ROUNDUP LATIN AMERICA

POSCO finds its Galaxy

South Korean steelmaker POSCO expected there will be opportunities for
has sealed a deal to buy lithium
mining rights in Argentina from Galaxy them to share infrastructure.
Resources Ltd for $280 million, beefing
up the Australian miner’s funds to dig a “They wanted to get their hands on a
lithium mine on neighbouring ground.
fairly sizable and high quality resource in
POSCO said in a statement that it
would also build a lithium plant in Ar- the region,” Tse said.
gentina, planning to produce 25,000 tpa
of the commodity for 20 years starting Shares in Galaxy, one of the Aus-
from 2021.
tralian market’s most heavily shorted
Demand for lithium, a critical ingredi-
ent for batteries used in EVs, has grown stocks, jumped as much as 11% after
in recent years as some consumers shift
away from cars powered by fossil fuels. the deal with POSCO was signed and

POSCO said the move would secure outperformed the broader market.
stable lithium supplies for its battery ma-
terial manufacturing affiliate POSCO ES Tse said that while the world’s major
Materials.
lithium producers Chile’s SQM, FMC
Galaxy, which agreed in May to sell the
rights for the Salar del Hombre Muerto salt Lithium and Albemarle Corp have mixed
flat in northern Argentina, plans to use the
funds to develop its flagship Sal de Vida views on the outlook for near-term lith-
lithium project in South America.
ium carbonate prices, Galaxy expects
Galaxy has shortlisted seven firms as
potential strategic partners at Sal de Vida, Anthony Tse rising demand to shore up prices.
and hopes to decide on the best option
before the end of 2018, managing director “We’re somewhat positive in that we
Anthony Tse told Reuters.
Asian and non-Asian firms, including lith- think the raw material consumption will
The shortlist includes Chinese, other
ium end-users, firms already in the lithium actually step up as [EV] production has to

industry and materials and industrial firms step up in the second part of the year.”

looking to get into the lithium supply chain, Over the past 2-3 years, China’s EV

Tse said. production has been much stronger in the

“You probably would be surprised in second half of the year than the first half,

terms of some of the not-so-usual sus- driving up demand for battery materials

pects that you might see on that list,” Tse later in the year.

said in an interview. Demand is also expected to rise in Ja-

He said the deal with POSCO was car- pan and South Korea, Tse said.

ried out separately as the South Korean – Jane Chung, Hyunjoo Jin, Sonali
steel giant was focused on developing its Paul, Susan Mathew, Aaron Saldanha,
own lithium processing technology, but he Reuters

Consolidated ships out

Consolidated Zinc Ltd has reported “We are very pleased that our Mexican liver feed to the concentrator at or above
that the first shipment of ore from team established mining operations on- 10,000 tpm within nine months.

the Plomosas zinc-lead-silver project in time, under budget and in a safe man- Marwood reported that the Plomosas
mine had been brought back into pro-
Mexico has set sail. ner. There is great potential at Plomosas duction in a safe and responsible man-
ner utilising local contractors and expe-
It is a good start for Brad Marwood and this cash-flow from early production rienced executive staff, with the mine up
and running incident free.
who joined Consolidated as chief execu- has created the financial means to begin
Prior to Consolidated’s interest in Plo-
tive a few months ago. unlocking that potential,” Marwood said. mosas, the mine had only be subjected
to small-scale mining operations, with
Marwood was on site on the main mineralised zones open at
depth and along strike.
September 20 to see first
Between 1945 and 1974, in excess of
ore from Plomosas on its 2mt ore grading 22% zinc and lead and
over 80 g/t silver had been extracted
way to the Santa Eulalia from Plomosas.

concentrator. The market reacted positively to Con-
solidated’s announcement with the com-
The company expects first pany’s share price boosted by a 22% rise
to 2.2c/share.
revenues in October-No-

vember, with delivery of 100t

of Plomosas ore per day to

the Santa Eulalia concentra-

tor for the rest of September.

Operations were expected

to scale-up beyond Septem-

ber at Plomosas, with Con-

Brad Marwood solidated setting up to de-

PAGE 120 OCTOBER 2018 AUSTRALIA’S PAYDIRT

LATIN

AMERICA

15-16 May 2019

Perth,Western Australia

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continents/regions, where they are able to get meet the delegations from slightly less
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“These conferences really do make a with the Vice Ministers/Directors were
difference.” – Intertek definitely productive.” – FQM

I had the opportunity to hold important meetings with representatives of diverse
mining companies from Australia and Latin America... It was extremely beneficial
to listen to the successful experiences of representatives of mining companies in
several Latin American countries.” – Embassy of Ecuador

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REGIONAL ROUNDUP EUROPE

Eldorado seeks
big claims in Greece

Eldorado Gold Corp said it would seek metallurgy plant to process concentrate The gold miner had said previously it
$US877 million from Greece for dam- mined from Skouries and Olympias. could consider increasing its free float
ages the Canadian miner said it suffered to 25-30% from 16%, in the mid to long-
due to delays in the issuance of permits Eldorado froze investment and sus- term, but Grachev said there were no
for its Skouries project. pended operations at its Skouries project plans to do it now.
last November, citing years of permit de-
The differences between Eldorado and lays. “Market conditions are needed to do
the Government over the miner’s plans this, there are none now,” Grachev said.
to produce gold and other metals in the Meanwhile, Polyus, Russia’s largest
northern Greek region of Halkidiki have gold producer, is on track to boost pro- Polyus has not been targeted by the
dragged on for years, mainly over envi- duction to 2.8 moz and to reduce its cap- US sanctions. However, Washington
ronmental regulations. ital expenditure in 2019, chief executive included Suleiman Kerimov along with
Pavel Grachev told Reuters. some other Russian businessmen on
“We hope that this matter can be re- the SDN (Specially Designated Nation-
solved in an amicable manner without Its 2018 production is on track to reach als) list in April. His son, Said Kerimov,
needing to go down the route of arbitra- the upper end of its forecast range of controls the company.
tion,” chief executive George Burns said 2.375-2.425 moz, Grachev said on the
in a statement. sidelines of the Eastern Economic Fo- Polyus’s 2019 budget will use the
rum in the Russian Pacific town of Vladi- same estimates for the gold price and
Eldorado has blamed Greece for long vostok. rouble/dollar exchange rate as its 2018
delays in issuing necessary permits, budget – $US1,200/oz gold and 60 rou-
while Athens said the company submit- Polyus said with the ramp-up of pro- bles per US dollar, Grachev said.
ted a deficient plan to build a metallurgi- duction at its Natalka gold deposit in Rus-
cal plant that will process ores mined in sia’s far east at its final stage, it expects He said the company’s hedging pro-
Skouries and Olympias. capital expenditure to fall to $US650 gramme would not be extended once it
million in 2019 and to $US550 million in expires in 2019.
But the company said in April that an 2020 from $US850 million in 2018.
arbitration panel in Greece has ruled – Reuters
it has a valid technical plan to build a Natalka is expected to reach full ca-
pacity in coming months.

Poland’s play for Prairie

Poland’s state-run JSW is awaiting ap- 51c/share on the ASX at the time of print. and that even if they move onto discus-
proval from the Energy Ministry in its Sources told Reuters this month that sions of specific transactions terms there
bid to acquire the Polish mining assets of can be no certainty as to whether any
Australia’s Prairie Mining Ltd. JSW, which has been in talks on coop- transaction(s) will be agreed, or the po-
eration with the Australian firm for much tential form of such transaction(s).
Prairie Mining has been developing of this year, wanted a controlling stake
coking coal projects at the Jan Karski in Prairie Mining to tighten its grip as the Prairie said it would continue to ex-
mine in southeast Poland and the Debi- EU’s biggest coking coal miner. change information with JSW, with any
ensko mine in Silesia, Poland’s industrial potential outcomes subject to a number
heartland in the south. JSW has said it Ozon declined to comment on that is- of conditions including, but not limited to,
wants to increase its coking coal output. sue. obtaining positive evaluations and expert
opinions, necessary corporate approv-
“We maintain that we would like to take The Energy Ministry, which supervis- als, consents and approvals related to
over Prairie Mining assets, however, we es the mining industry, had planned to funding, consents from Poland’s Office
still need to obtain the owner’s approv- dismiss Ozon after disagreements over of Competition and Consumer Protection
als, which means that the Energy Min- strategy but a meeting of the supervisory if required, and any other requirements
istry opinion is necessary,” JSW chief board in which this was expected to take that may relate to the strategy, objectives
executive Daniel Ozon told Reuters. place was cancelled in mid-September, and regulatory regimes applicable to the
sources said. JSW declined to comment respective issuers.
“This is why it is unlikely that the whole on the meeting.
process of assessing Prairie Mining as- – Wojciech Zurawski, Reuters
sets will finish in September,” he said, Energy Minister Krzysztof Tchorzews-
adding he hoped the process would be ki told Reuters that he was familiar with
completed in October. JSW’s plan to take over Prairie Mining
but declined to provide details.
He did not give a value for any transac-
tion. Prairie Mining has a market capitali- In a statement to market recently,
sation of $79 million and was trading at Prairie said commercial discussions
continue to be at a preliminary stage

PAGE 122 OCTOBER 2018 AUSTRALIA’S PAYDIRT

Perth, Western Australia 9
November 12-13

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Eagle lands water driller Eagle Mountain has contracted KP Downer charges up for
Ventures for water drilling services at vanadium development
KP Ventures Well Drilling & Pump the Silver Mountain project in Arizona
LLC has been contracted to provide Downer EDI Ltd has entered into an
water drilling services for Eagle Moun- European investors. agreement with Multicom Resources Ltd
tain Mining Ltd at its Silver Mountain Bacchus will take on responsibility for over the development of the Saint Elmo
copper-gold project in Arizona. vanadium project in Queensland.
facilitating various activities and any trans-
Under the terms of the contract, up actions contemplated by the company Under the terms of the agreement,
to three wells will be drilled and pump- over the next 18-24 months. Downer will have a lead role in progress-
ing equipment established for one well. ing a concept study for the development
Davenport managing director Chris of vanadium flow batteries using material
The wells will be located on the com- Gilchrist is confident the partnership will sourced from Saint Elmo.
pany’s 100%-owned patented claims enhance interest in the company’s South
and the water used for an upcoming Harz potash project in Germany. The agreement also outlines the intention
6,000m diamond drilling programme. of progressing to a mining services agree-
“Together we intend to significantly ment at Saint Elmo, as well as the provision
In association with the water drilling increase our marketing efforts within of design and engineering services.
and expected water production rates, Europe in support of planned, higher
20 tanks each with a capacity of 20 gal- level technical and economic inves- Downer’s mine planning, scheduling
lons will be installed at various locations tigations within our licenced areas in and fleet management expertise will
across the project. the South Harz district,” Gilchrist said. provide key services to Multicom. These
services will support Multicom’s focus
Godbe Drilling LLC has been contract- on the exploration and development of
ed to undertake the diamond program. its vanadium assets.

Davenport looks to In other contract news, Downer will
sprout in Europe continue to provide mining services at
the Commodore open cut coal mine for
Davenport Resources Ltd has tapped the next five years, having been based
London-based Bacchus Capital Advisers at the Queensland operation since 2001.
Ltd for strategic, financial and corporate
advice on the back of rising interest from Downer’s contract extension is val-
ued at $286 million. The scope of works
includes operating and managing the
mine and associated activities, including
mine planning and design, drill and blast,
overburden removal, coal mining and re-
habilitation.

Downer will have an active role
in developing the Saint Elmo

vanadium project in Queensland

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PAGE 124 OCTOBER 2018 AUSTRALIA’S PAYDIRT

www.nucleussc.co.za

Thiess has signed a two-year contract Okapi partners with Terrex announces new
extension for mining services with Fathom Geophysics leader and strategy
BHP Nickel West at Leinster
DRC-focused Okapi Resources Ltd has Leading seismic surveyor Terrex Seis-
Thiess extends stay at appointed Fathom Geophysics as consult- mic has appointed former Geokinetics
Leinster underground ing geophysicists to the company. Australia managing director Dave Stege-
mann as its new chief executive.
CIMIC Group subsidiary Thiess will con- Fathom is an Australian and US-based
tinue to provide mining services at BHP consultancy specialising in exploration for Stegemann, along with other former
Nickel West’s Leinster underground mine “blind deposits” with extensive global expe- senior management from Geokinetics
for another two years. rience, in particular southern, central and Australia, joined Terrex’s operational team
north-west Africa. last month and is one of the country’s most
The $190 million contract extension in- highly regarded leaders in the global seis-
cludes provision of a full range of under- The company recently began sourcing mic exploration. He spent five years at
ground mining services and equipment and reviewing all public domain data as- the helm of Geokinetics Australia before
to support the mine’s lateral development sociated with each of the Okapi projects, its assets were recently acquired by US-
and associated ore production, including including reviewing proposed airborne mag- based SAExploration.
load and haul, shotcreting, cable bolting netic, radiometric and EM survey work pro-
and full fleet maintenance services. grammes over the Katanga copper-cobalt Incumbent Terrex chief executive Greg
project. Dunlop will support the transition to the
Thiess has been operational at the Lein- new leadership structure before transition-
ster underground mine since 2016. Fathom will provide Okapi management ing to a senior non-executive role with the
with recommendations for specific geophys- company.
Meanwhile, CIMIC’s mineral processing ical programmes.
company Sedgman has been awarded an Stegemann’s appointment comes as
EPC contract by Nevada Copper Inc for “Given the challenges faced with the Terrex prepares to launch a second seis-
the Pumpkin Hollow copper concentrator monsoonal season approaching, we view mic crew in the coming months with a sig-
in Nevada. geophysical tools as key to developing our nificant new investment into state-of-the-
projects in a timely and cost effective man- art autonomous SmartSolo nodes.
The 18-month EPC contract carries an ner,” Okapi managing director Nigel Fergu-
estimated value $US118 million and com- son said. “I’m very excited to be joining such a pro-
prises design, civil, structural, mechani- gressive and truly Australasian focussed
cal, piping, electrical and commissioning “Fathom has considerable experience in company as Terrex, at a time of industry
works for the 5,000 tpd concentrator. the region and understands the style of min- growth,” Stegemann said. “I know and re-
eralisation expected within our projects. We spect the team at Terrex and I’m confident
Work transitioned from the previous in- see our relationship with Fathom as a stra- we will complement what already is a
terim services agreement to the full EPC tegic alliance and are confident in Fathom’s successful and strong team and culture.”
contract last month. ability to add value to our project portfolio.”

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OF SERVICE TO CLIENTS SEEKING WORLD-CLASS
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greenfield exploration / construction projects / operational logistics

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 125

RDREIGLLIOBINTSAL ROUNDUP

Tando gears up in a magnetic concentrate grading 2.03% va- Ken Brinsden
South Africa nadium oxide.
Pilbara grows minerals
Tando Resources Ltd is on track to deliv- VRC001 is 150m from historical hole
er a resource from the SPD vanadium pro- SFR009, which returned assays of 23m Pilbara Minerals Ltd will look to in-
ject in South Africa by the end of this month. @ 0.65% vanadium oxide and a magnetic crease its resource and reserves base
concentrate grading 2.2% vanadium oxide. at the Pilgangoora lithium-tantalum
Ahead of the resource announcement, project in Western Australia with drill-
drilling has intersected the mineralised unit Liontown grits teeth ing planned to restart in the March
based on visual identification of magnetite 2019 quarter.
in diamond core and RC chips. Buoyed by the confirmation of a sec-
ond significant lithium discovery at its “The continued growth in ore re-
The company reports this is highly sig- Buldania project, near Norseman, Li- serves reflected the quality and scale
nificant because the mineralised unit com- ontown Resources Ltd has decided to of the Pilgangoora project and truly
prises a series of magnetite layers, which expand the current 32-hole, 5,000m sets the scene for our Stage 2, 5 mtpa
is well-established as the host rock for the drilling programme to test for further expansion,” Pilbara managing director
vanadium mineralisation at SPD. strike extensions to the south-east. Ken Brinsden said.

Diamond hole VDD001 intersected the Current drilling has extended lithium Brinsden was commenting after the
mineralised unit between 32m and 49m mineralisation at least 200m toward company announced a 35% increase
down-hole and the first RC hole VCR001 in- the south-east under shallow cover in reserves at Pilgangoora to 108.2mt
tersected the mineralised unit from surface. at the Anna prospect, confirming the @ 1.25% lithium, 120 ppm tantalum
presence of an extensive zone of spo- and 1.17% iron from an estimated re-
VDD001 is 150m from historical drill hole dumene-related lithium mineralisation. source of 226mt @ 1.27% lithium con-
SPD014 which returned whole rock/pre- taining 2.86mt of lithium.
concentrate assays of 25m @ 0.67% va- Mineralisation is open in all direc-
nadium oxide with samples from the same tions, with the Anna pegmatite body DevEx ready to roll
interval generating a magnetic concentrate covering a minimum strike length of in NT
grading 1.99% vanadium oxide. 650m and with surface widths vary-
ing between 50m in the north-west to DevEx Resources Ltd has planned
VDD001 is also 170m from historical hole 250m in the south-east. to start drilling the U40 prospect at
SFR008, which returned assays of 44m @ its West Arnhem uranium-copper-gold
0.66% vanadium oxide and generated an Results on hand at the time of print
outstanding magnetic concentrate grade included 41m @ 1% lithium from 8m, in-
of 2.26% vanadium oxide from the same cluding 7m @ 1.8% from 19m and 14m @
interval. 1.4% from 27m, and 35m @ 1.2% lithium
from 35m, including 5m @ 1.6% from
VRC001 is located 150m from historical 42m and 18m @ 1.7% from 51m.
hole SFR007, which returned strong as-
says of 22m @ 0.8% vanadium oxide and

Tando expects to deliver a resource estimate from the SPD vanadium project
by the end of this month

PAGE 126 OCTOBER 2018 AUSTRALIA’S PAYDIRT

project in the Northern Territory this mond drilling across the Great Northern High-grade keeps
month. prospect at the Woodlark project, Papua coming for AVZ
New Guinea.
At the time of print, DevEx was plan- AVZ Minerals Ltd’s extensional drilling at
ning a drilling programme after a recent Diamond drilling results included 2m @ Roche Dure has identified additional high-
IP geophysical survey identified a clear 21.77 g/t gold within broader zones, while grade lithium and tin mineralisation at its
chargeable anomaly down-dip from an other highlights were 10m @ 5.41 g/t from Manono lithium project, DRC.
isolated pod of high-grade uranium-cop- 74m; 7.7m @ 2.07 g/t from 99.2m; 3m @
per-gold mineralisation. 4.65 g/t from 5m and 3m @ 9.54 g/t Au Hole MO18DD044 hit 273.45m @
from 91m including 1m @ 19.4 g/t. 1.73% lithium and 953 ppm tin from
Diamond drilling has previously inter- 50.55m down-hole and 259.3m @ 1.76%
sected 6.3m @ 7.23% uranium, 1.9% “The results at Great Northern have lithium and 1,015 ppm tin from 41.m down-
copper and 0.66 g/t gold from 75.5m and confirmed and extended the zones from hole was intersected in MO18DD043.
12.3m at 0.73% uranium, 2.03% copper historical drilling,” Geopacific managing
and 1.77 g/t gold. director Ron Heeks said. The results from the eight diamond
drill holes were not included in the com-
The company believes there is po- “The area was the first tested under the pany’s maiden resource at Manono re-
tential to discover high-grade uranium- current bigger picture resource drilling ported in August.
copper-gold mineralisation similar to that programme aimed to highlight the full po-
at the historical Nabarlek uranium mine, tential of the Woodlark mineral field. Dia- Geopacific has planned more RC
11km to the south-west of its tenements. mond drilling was used initially to provide drilling for the Great Northern prospect
a greater understanding of the geology to define the mineralisation and move it
Great results for and mineralisation of the area. A planned
Geopacific follow-up phase of RC drilling will further towards resource category
define the mineralisation and move it to-
Geopacific Resources Ltd has report- wards the resource category for future
ed widespread gold intercepts from dia- exploitation.”

AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 127

COMINGS AND GOINGS

Mark Clark director and vice-president ex- an independent non-executive and business development re-
ploration respectively. director. Mahanyele runs her quirements.
Mark Clark will retire as own finance company, Sigma
managing director and ex- Peter Watson has been Capital, which she founded in James Black has resigned
ecutive chairman of Regis Re- promoted to an executive 2016 after spending 12 years as a director of Red River
sources Ltd this month. Clark director role at Strandline Re- with the Shanduka Group. Resources Ltd after three
will continue as non-executive sources Ltd. Watson joined Prior to that she worked at in- years on the company’s board.
chairman until the company’s Strandline’s senior manage- ternational investment banking
AGM next month when non-ex- ment team in 2017 and will firm Fieldstone for six years. Tim Putt
ecutive director James Mactier oversee strategy and develop-
will step into the role. Former ment relating to the company’s TNG Ltd has appointed Lachlan Reynolds has been
Mt Gibson Iron Ltd chief ex- Fungoni and Coburn mineral experienced metallurgist appointed managing direc-
ecutive Jim Beyer has been an- sands projects in Tanzania and Tony Arena as general man- tor of Golden Mile Resources
nounced as the gold producer’s Western Australia respectively. ager, processing. For the past Ltd. Reynolds previously held
new managing director. Beyer 10 years, Arena has mentored senior roles at WMC Resourc-
was previously general man- Graphite hopeful Hexagon engineers, metallurgists, opera- es and OceanaGold Ltd and
ager of the Boddington and Pa- Resources Ltd has ap- tors and supervisors while suc- was most recently vice-presi-
jingo gold mines. pointed Lianne Grove as chief cessfully commissioning multi- dent of business development
commercial officer. A finance ple mineral processing facilities for TSX-listed Era Resources
Stavely Minerals Ltd man- professional with 25 years of within Australasia, including Inc. Founding directors of
aging director Chris Cairns experience, Grove has held PNG and Laos. He was most Golden Mile Tim Putt and
has assumed the role of execu- senior roles for oil and gas pro- recently metallurgical and pro- Koon Lip Choo have retired
tive chairman of the company ducer AWE Ltd and Rio Tinto duction superintendent at Roy from the board to pursue other
following the retirement of Bill Ltd subsidiary Dampier Salt. Hill Pty Ltd’s iron ore operations business opportunities.
Plyley, who will remain on the in WA’s Pilbara region.
board as a non-executive direc- Bluejay Mining plc has ap- Myanmar Metals Ltd has
tor. Company secretary Aman- pointed Dr Bo Møller Sabina Shugg AM has joined appointed Rob Cicchini
da Sparks has also accepted Stensgaard as general man- Resolute Mining Ltd as a as project director to lead the
an invitation to join the board as ager. Dr Stensgaard will join the non-executive director. Shugg Bawdwin base metals project
a non-executive director. company’s subsidiary boards is also a director of the newly through the study, permitting and
as executive director of Dundas formed Kalgoorlie-Boulder Min- construction phases. Cicchini is
Titanium A/S and Disko Explo- ing Innovation Hub and is the a civil engineer with more than
ration Ltd. He will join Bluejay’s founder and chair of Women in 27 years of resources industry
executive team currently de- Mining and Resources WA. experience, including a lengthy
veloping the company’s wholly stint with Lycopodium Ltd.
owned Dundas titanium project Magnis Resources Ltd has
in Greenland. appointed former Fed- Gordon Toll has resigned as
eral Government Minister Hon executive chairman and
Philippa Leggat Craig McGown Warwick Smith AM as a direc- chief executive of Magnetite
tor. Smith is currently executive Mines Ltd following the termina-
Philippa Leggat has stepped Tim Kennedy has succeed- chairman of AL Capital which tion of a proposed transaction
down as executive director ed Craig McGown as non- recently invested $11.1 million involving several of his other
corporate at Geopacific Re- executive chairman of Sipa into Magnis. companies. Peter Schubert will
sources Ltd to pursue other op- Resources Ltd. Kennedy, who fill both roles until suitable re-
portunities in the junior sector. joined the company as a non- Stonewall Resources Ltd placements have been identified.
executive director in December has appointed Bill Guy
Quinton Hills is MetalsTech 2016, spent more than a dec- as chairman. Guy was most Keong Chan has been ap-
Ltd’s new technical direc- ade as Independence Group recently managing director of pointed non-executive
tor. Hills is a geologist with 15 NL’s exploration manager and Longford Resources and Ram chairman of Superior Lake
years of experience across currently sits on the boards of Resources. Resources Ltd. As part of the
projects in Australia, Botswa- Millennium Minerals Ltd and board restructure, Chan has
na, Sweden and Finland. His Helix Resources Ltd. McGown DGR Global Ltd company handed over company secre-
appointment follows the de- will remain on Sipa’s board secretary Karl Schlobohm tary duties to Mathew O’Hara
partures of David Riekie and as a non-executive director. has been appointed an alter- while Yunde Li has stepped
Cherie Leeden as managing nate director for Bill Stubbs. He down as a non-executive di-
Gold Fields Ltd has appoint- has been with the DGR group of rector. Grant Davey and Peter
ed Phuti Mahanyele as companies since 2009 and has Williams have retained their
more than 27 years of experi- positions on the board.
ence across several industries.

Olaf Frederickson has ten-
dered his resignation as a
non-executive director of Nova
Minerals Ltd, but will remain as
a consultant to the company to
assist with ongoing geological

PAGE 128 OCTOBER 2018 AUSTRALIA’S PAYDIRT

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AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 129

LEFTFIELD

Rio Tinto and UWA talk inclusion

The UWA and Rio Tinto partnership has Rio Tinto and The University of West- world challenge: How do we ensure smart
delivered many initiatives during the past ern Australia have joined forces to cities are inclusive? Students explored the
bring an innovative global leadership issue from a local perspective and meet
20 years programme designed to enhance cultural visionary leaders from global businesses,
intelligence, networks, collaboration and governments and not-for-profit organisa-
leadership skills for students. tions to help them understand the chal-
lenge and create innovative solutions.
It is the first time the programme has
been run in WA and is just one of many UWA was selected in 2012 as one of
initiatives the UWA-Rio Tinto partnership Rio Tinto’s inaugural partners for its Global
has delivered during the past 20 years. Education Partnership Programme, now
known as the Talent Education Partner-
Hosted by UWA and supported by Rio ship. The partnership programme takes a
Tinto, the programme held in late Septem- lifecycle approach to supporting students
ber enabled up to 100 UWA students to through initiatives aimed at aligning UWA’s
play a part in tackling some of the biggest programmes with Rio Tinto’s core values.
issues facing business, governments and
society.

The programme is focused on the major

INDEX

Acacia 30, 42 Era 128 Metminco 112-113 Sandfire 89
African Rainbow 56 EV Metals 96-97 Millennium 128
Albemarle Minbos 78 Shandong 5
Altura 120 Mincor 92
Anglo American 14-15 Mkango 90 Sipa 46, 47, 128
AngloGold MMG 10
Ardea 36 FAR 40 Mod 73 SQM 120
Atlas Iron 57, 113 FMC Lithium 120 Mt Gibson 128
Australian Mines Force Multicom 128 St George 116
Avenira 96 87 Myanmar Metals 128
AVZ 44 Stavely 128
Axiom 96
Azumah 61, 61 Stonewall 128
87, 127
114 Galaxy 120 Strandline 30, 42, 128
65 Galileo 104, 110
Gem Sumitomo 8, 112-113
Genmin 34
Geopacific 84 Sunshine 112
Glencore 127, 128
Gold Fields 16, 23, 75, 87 Superior Lake 128
Golden Mile 128
Golden Rim 128 Nevada Copper 128 Symbol 85
67 New Century 10-12
Nickel Mines 104-107 Syrah 44
NoGa
B2Gold 16 Nordgold 84 Tando 126
Nova 57 Tanga 16
Bannerman 16 Nzuri 128 Tawana 14
75, 76 Teck 16
Barrick 5, 30 Terramin 60
TNG
Base 30, 52 Harmony 69 Trek 128
Helix 128 84
Bass 78 Hexagon 128

Battery Minerals 44 Occidental 66
OceanaGold 128
BHP 18, 20, 93, 109, 114, 125 Okapi 128
Orca
Birimian 72, 89 IAMGold 88 OreCorp 90
Independence 18-23, 36, 92, Orion 30, 42
Black Mountain 8, 92-93, 116 110, 118, 128 Oz 21, 36, 69 Vale 8
Indiana 108-109 Vector 87
Black Rock 42 IronRidge 7, 46, 68
Ivanhoe 72
Bluejay 128
75, 87
Walkabout 25, 28, 30, 42

Cardinal 71 West African 54, 76
Cassini 108-109
Celsius Panoramic 8, 92 West Wits 70
CleanTeq 16, 74 Perseus 66
Comet 96 Jupiter 104 Pilbara Western Areas 20, 22-23, 93, 116
Comilog 51 Polyus 5, 14, 126
Consolidated Zinc 84 Poseidon 122 White Rivers 69
Constellation Prairie
Cradle Arc 120 Kibaran 42 92, 102 Winmar 86, 87
104, 110 122
Woodside 40, 46
68
Lancaster 90 Randgold 5, 68, 87
Legend 110-111 Red River 128
Liontown Regis 128
Lucapa 126
34

Davenport 124 Magnetite Mines 128 Resolute 46, 55, 68, 82, 89,
Deep Yellow 16 Magnis 128
DevEx Mako
126-127 Managem 66
MetalsTech 84
128 90, 128

Eagle Mountain 124 Rio Tinto 6-7, 16, 47, 57, 128
Eldorado 122
Roy Hill 128

PAGE 130 OCTOBER 2018 AUSTRALIA’S PAYDIRT

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AUSTRALIA’S PAYDIRT OCTOBER 2018 PAGE 131