Mining Breaks

Workplaces at Sibanye’s Thembelani mine at Rustenburg in South Africa have been closed after 51 more employees tested positive for COVID-19. The tests of 120 direct and indirect contacts among the workforce followed two positive tests at the platinum mine last week.
Sibanye says all the contacts were asymptomatic at the time of testing.
All the positive cases have been moved from quarantine to isolation. The contacts who were cleared by the tests, and other employees in the workplaces where positive cases were found, are now in 14-day quarantine.
They bring the total of positive cases at Sibanye’s SA operations to 65. All operations have been confirmed by health and resources authorities as complying with national COVID guidelines.

Major shareholder and non-executive director Ross Stanley has deferred the repayment deadline for Lucapa Diamonds on a $A10M loan from his associated company New Azilian, allowing more time to pursue revisions or refinancing of its existing indebtedness.
As well as extending the repayment date from May 29 to Aug 31, Stanley agreed to defer interest payments until termination and removed the option to convert the interest payments to shares.
MD Stephen Wetherall says the changes assist Lucapa through a challenging period. It comes as Lucapa dispatches the prospectus for a 1-for-5 rights issue to shareholders at 5cps to raise $5.25M.

Australian explorer Alto Metals, the focus of a three-way acquisition battle, has maintained its positive recommendation for the offer by Goldsea Australia Mining after it increased its cash bid to $A0.075 per share, up from $0.065.
Alto notes the takeover offer by Chinese-backed Goldsea remains subject to Australian FIRB approval and other conditions.
It says Australian privateer Habrok Mining, which proposed to offer 6.6cps last week, has not yet lodged a formal bid.

With the award of the major underground mining contract at Mincor Resources’ Kambalda nickel operations in Western Australia to its recently acquired Pit N Portal business, diversified equipment supplier Emeco is now forecasting operating EBITDA of $244-247M for the year to June 2020.
The increase from its FY19 result of $214M comes despite lower fleet utilisation in the Australian Eastern region due to COVID-19 impacts on costs and lower coal prices, countered by good performance by its Western region and Force workshops operations.
CEO-MD Ian Testrow says Pit N Portal is performing to expectations and has a strong tender pipeline, with its confidence further boosted by winning the Mincor project.

West Australian nickel miner Mincor Resources has moved closer to the recommencement of high-grade production at its 100%-owned Kambalda project with the award of the underground mining contract to specialist contractor Pit N Portal.
The Kalgoorlie-based contractor, recently acquired by Emeco, will conduct underground operations at the new Cassini mine for 5 years and the brownfields Durkin North and Long nickel mines for 3 years with a 2-year option.
The contract award follows a highly competitive tender process and extensive due diligence. The contract value has not been disclosed.
Mincor is targeting the start of mining operations at Kambalda in H2 2020, subject to board approval and a final investment decision.

A positive PEA for the restart of gold miner Wesdome Gold Mines’ 100% owned Kiena complex in Val d’Or, Quebec, Canada, envisages a low-cost, high margin underground operation, with low capital requirements and a short payback period generating an average annual 85,931oz gold pa over an initial 8-year LoM.
LoM payable output is estimated 687,449oz, based on a mill start-up in H2 2021, from gold in mined resources containing 709,000oz at cash costs of $C492oz ($US $374oz) and AISC $674oz ($US512oz).

PNG mineral and industrial sands project developer Mayur Resources has posted a 40% resources upgrade as it progresses construction of a small-scale bulk sampling pilot plant at its Orokolo Bay project 300km NE of Port Moresby.
The plant, due for completion late this year, will produce up to 100,000tpa iron ore sands for shipping to potential offtakers.
Its 2019 infill drilling and LIDAR survey boosted resources in the Western area to 209.5Mt and total project resources to 243Mt.
Mayur is advancing a DFS assessing production of titano-magnetite for steelmaking, dense media separation magnetite for coal washing, construction sands and zircon-rich heavy mineral concentrate.

Privateer JR Resources has done a deal to buy 64.2% of OTCQB: DTRC-listed Dakota Territory Resource Corp for $US21.38M at $0.15cps, subject to certain milestones being mutually agreed by Oct 15, 2020.
Dakota Territory holds 100% of 5 gold properties covering about 8,246 acres in the heart of the Northern Black Hills of South Dakota, US, including the Blind Gold, City Creek, West Corridor, Homestake Paleoplacer and Tinton properties. The company was born in 2012 out of its management’s mining/exploration experience with Homestake Mining in the Black Hills and its acquisition of property Homestake had previously explored in the district.
Dakota Territory and JR, a well-funded private Nevada company, have been engaged since early 2020 in the development of a strategy to acquire additional property/projects.

Australia-based explorer White Rock Minerals is raising up to $A7.35M via a 2-tranche placement and a fully underwritten SPP, and consolidating its issued capital through the conversion of 100 existing shares into 1 share, subject to shareholder approval.
The 0.3cps offer raisings – the 2-tranche placements for $5.85M and $1.5M from the SPP -- are to explore/drill test the company’s Last Chance gold anomaly within the Red Mountain project in central Alaska’s Tintina Gold Belt. Red Mountain has 2 high grade deposits with an inferred 9.1Mt @ 12.9% zinc equiv for a contained 1.1Mt ZnEq.

A definitive feasibility study has delivered a “compelling” case for Lepidico’s planned modest-scale commercial development of its 80%-owned Karibib project in Namibia feeding a processing plant in Abu Dhabi utilising its proprietary L-Max technology.
The DFS outlines a $US139M development of the integrated mine, concentrator and chemical plant to produce 4,900tpa nominal battery-grade lithium hydroxide monohydrate plus high value and bulk by-products at AISC of $3,221/t over 14 years.
It calculates NPV (8%) of $221M, IRR of 31% and capital payback of just over 3 years.

West Australian privateer ACH Minerals is closer to a start-up with an Environmental Protection Authority recommendation to approve its proposed development of an opencut and underground mining operation at the Kundip mine site, 17km SE of Ravensthorpe near the state’s south coast.
The company is targeting production of 0.5Moz gold, 0.4Moz silver and 11,300t copper over eight years from mining multiple deposits, with on-site processing facilities to treat about 3Mt of ore, tailings storage and associated infrastructure.
ACH, established by a group of experienced mining executives backed by Australian and Chinese expertise and resources, acquired 100% ownership of the former Phillips River gold project from miner Silver Lake in 2016.

Russian gold producer Petropavlovsk’s Dec 2019 year (FY/CY19) profit was a minor 0.8% increase on FY/CY18 to $US25.7M, reflecting higher impairment reversals in 2018 and reduced interest capitalisation in 2019, with operating profit down 9% to $115.4M.
The result came despite revenue, including non-precious operations, jumping 48% to $741.6M, underlying EBITDA up 45% to $264.8M and cash from operations before working capital changes up 54% to $250.5M, but with cash from operations down 43% to $189.3M.
Gold production rose 22% to 517,300oz, with sales up 39% to 514,000oz at cash costs also up 10% to $749oz and AISC down 5% to $1,020oz. FY/CY20 gold production is expected to range from 620,000oz-720,000oz, including 3rd -party conc processing.
The company finished FY/CY19 with net debt down to $561.3M from $568M.

Australia-based global battery material supplier NOVONIX has launched a $A58.28M capital raising to underpin its transitions to the commercial production of high performance anode materials for lithium ion batteries for electric vehicles and energy storage systems.
The $0.29 per share raising includes a proposed $5.65M placement to institutional investors, a strategy placement to St Baker Energy Innovation Fund for $14.72M- $19.45M, depending on the shares on issue following the institutional placement, and a 1-for-1 accelerated non-renounceable entitlement offer to Australian and New Zealand shareholders for $37.91M.
Proceeds will fund expansion capex to up-scale proprietary anode material production from 500tpa to 2,000tpa over 2020-2021 to meet customer demand, provide working capital to fulfil an initial SAMSUNG order, and facilitate development/commercialization of the DPMG technology for cathode and other million-mile battery innovations.

Australian explorer Silver Mines has raised $A12M to support pre-development work at its 100%-owned Bowdens silver project, its proposed 3.4Mozpa development near Mudgee in central NSW.
The placement of 120M shares at 10cps to institutional, professional and sophisticated investors coincides with the lodging of SVL’s development application and EIS for Australia’s largest undeveloped silver deposit with state planners.
MD Anthony McClure says the response to the capital raising is a clear backing of Silver Mines’ quality assets and the very positive outlook for precious metals.
The funding will also support initial drilling at its Tuena gold project 80km south of Orange in NSW.

Australian lithium developer Core Lithium has completed a $A5.5M placement and extended the same offer to shareholders via a $1.5M SPP.
The raising follows the earlier this month signing of a non-binding MOU for the potential supply of 50,000tpa of spodumene concentrate to Geneva-based Transamine over 5-years from Core’s flagship, wholly-owned Finniss Lithium Project, south of Darwin in Australia’s Northern Territory.
Updated Finniss FS scheduled for completion towards the end of this quarter.

Australian battery anode provider Talga Resources has teamed up with leading world lithium-ion batteries manufacturer Farasis Energy to supply coated anode products for evaluation in batteries and assess potential business development opportunities, primarily in Europe.
MD Mark Thompson says Talga is looking forward to working with China-headquartered Farasis to commercialise its lithium-ion battery anode products in the rapidly growing market.
Quantify and pricing terms are subject to negotiation, leaving Talga unable to quantify the economic benefits arising from the agreement at this stage.

Rox Resources has put away $8.7M of its $12.7M raising to lift its stake in the Youanmi Gold Project from 50% to 70% and ramp up exploration/resource development programs for both the Youanmi and Fisher East Nickel projects in Western Australia.
The $8.7M institutional placement, $3M of which will go to lifting the Youanmi stake, is being followed by a $4M share purchase plan at the same price as the placement.

Bellevue Gold has come up with some bonanza grade hits from infill drilling at its Bellevue Gold Project, 400km NW of Kalgoorlie, Western Australia, that bode well for a maiden indicated resource expected mid-year.
The latest results include 0.3m @ 1,169.1g/t Au from 100m in the Bellevue North area, along with drilling in the Deacon central area yielding 5.3m @ 54.5g/t from 650.9m, 1.5m @ 168.8g/t from 651.7m (incl 0.5m @ 499.1g/t), 2.5m @ 49.2g/t from 527.8m, 10.3m @ 10.7g/t from 566.9m, 4.3m @ 9.1g/t from 701.9m, 2.6m @ 10g/t from 626m, 1.64m @ 48g/t from 640m and 3.3m @ 22.5 g/t from 618.1m.
The Deacon lode accounts for 410,000oz at 12.3g/t of the 2.2Moz (6.1Mt at 11.3g/t) inferred resource at Bellevue. Dewatering of the existing Bellevue decline is progressing to plan.

West Australian explorer Alto Metals is nearing a decision on the $A21M takeover offer by Chinese conglomerate Shandong Goldsea Group as it announces a significant increase in global resources at its 100%-owned Sandstone gold project.
Total indicated and inferred resources at the East Murchison project have grown to 331,000oz (6.2Mt @ 1.7g/t) on the back of an independent update of the Lord Nelson deposit to 109,000oz (1.8Mt @ 1.9g/t).
The 60% increase in Lord Nelson’s inferred gold comes from shallow mineralisation along 200m strike south of a historic openpit. The project, which contributes 33% of Sandstone’s total mineral resource, is still open in all directions.

Explorer European Lithium has enlisted global electric vehicle technology metals leader Talaxis to support it through completion of the DFS on its 100%-owned Wolfsberg lithium project in Austria including commercial relationships, contract negotiations and strategic market research.
Talaxis MD Daniel Mamadou-Blanco will join the EUR board as a strategic advisor.
Chairman Tony Sage says the deal will expedite the Wolfsberg project as the world, especially Europe, moves out of the pandemic into an EV future.