Mining Breaks

Diversified explorer Arcadia Minerals says its confidence in the 80%-owned Swanson tantalum-lithium project in Namibia after receiving an offtake and construction funding letter of intent from Chinese multinational HeBei Xinjian Construction.
The company hopes to finalise a transaction in the March 2023 qtr covering concentrate offtake and funding on a profit-share basis to construct and commission tantalum and lithium concentrate plants.
Rising spodumene prices have led Arcadia to extend the deadline for its Swanson project DFS to early in the March qtr to incorporate beneficiation of the lithium ore.

New Australian producer Tombola Gold expects initial cashflow this week from its 93%-owned Golden Mile project under a pre-sale agreement signed with substantial shareholder Ilwella for the N Qld mine’s first 200oz gold output.
While small, the presale deal will be a precursor to the contracted sale of the remaining production to the Australian Bullion Co.
Tombola predicts production will grow in 2023, with MD Byron Miles predicting a huge 2023 for the company as it ramps up production with two processing plants coming on line.

For the first time in Australia, a specialist land and natural resources court has adopted climate change and human rights arguments to oppose a giant thermal coal mine development.
The Queensland Land Court recommends the state government deny a mining lease and environmental authority for the 40Mtpa Galilee mine proposed by mining entrepreneur Clive Palmer’s Waratah Coal.
The court’s decision may be challenged in the state Supreme Court.

Talison Lithium has continued the build-up of operations at its Greenbushes mine in Western Australia, issuing a notice of a 7-plus-2 years contract award to Action Drill & Blast. The contract, due to commence in July 2023, is valued at about $A300M over the initial term.
It covers ore, waste, pre-split and RC grade control drilling together with loading, stemming and initiation of bulk explosives. Action will source its plant requirements internally while spending about $30M on new equipment over the contract life.
The subsidiary of NRW Holdings has been conducting drill and blast activities since 2011 at the long-lived mine, about 250km S of Perth.

Peninsula Energy is on a pathway to restarting production in the March 2023 qtr after completing a positive financial investment decision for its 100%-owned Lance uranium project in Wyoming, USA.
The FID for the $US290M development slated to produce 14.4Mlb U3O8 over 14 years from a JORC resource of 53.7Mlb is supported by a fully underwritten $A32M placement and $3M share purchase plan.
They’ll fund the completion of works transitioning Lance from alkaline ISR to the low-pH process, to restart production operations within the Ross production area and advance the Kendrick production area.
Peninsula expects to commence deliveries to existing customers in Q4 2023.

Global resource miner and marketer Glencore has finalised terms on the $US1.1B sale of its Cobar underground copper mine in NSW, Australia to special purpose acquisition company MAC.
Their binding agreement over the CSA project, one of Australia’s longest-operating and highest-copper producers, is expected to be completed in the March 2023 qtr.
The Swiss-based company will receive in addition to the staged cash payments a 1.5% net smelter return royalty for the life of the mine.
Although Glencore director Patrice Merrin is also a director of MAC, her shareholding in the NYSE-listed capital fund-raiser is less than 1%. Glencore says the transaction does not come under related-party provisions.

Philippines miner X64 has taken another step towards building the critical mass for a satellite operation feeding its Co-O complex in Mindanao with the posting of an updated indicated and inferred mineral gold resource of 96,000oz (441,000t @ 6.77g/t) for the Royal Crown Vein deposit.
Exec chairman Jeff McGlinn says the mineralisation extends from surface to about 200m depth and remains open at depth and along strike, showing scope for further resource growth.
RCV is about 3km from the Co-O mill. Further drilling is planned in early 2023 to increase confidence and the resource base.

Australian explorer ABx Group has established the first resource estimate for rare earth elements it has identified within its Tasmanian bauxite projects with the declaration of 3.94Mt @ 655ppm TREO-CeO2 and 918ppm TREO for the Deep Leads-Rubble Mound discoveries.
MD-CEO Dr Mark Cooksey says it’s a strong base to significantly grow its rare earths resource. The estimate covers about 7.5% of the total prospective area in N Tasmania, and it’s anticipated to grow significantly as drilling proceeds.

Pacific Nickel Mines has delivered “a clear indication” of potential to materially increase mine life for its 80%-owned Kolosori DSO project on Isabel Island in the Solomon Islands with a further mineral resource estimate.
The latest JORC contained nickel estimates by independent consultants Mining One of 134,000t (9.21Mt @ 1.46%) at 1% Ni cutoff and 111,000t (7.08Mt @ 1.57%) at 1.2% Ni cutoff reflect the completion of a detailed LIDAR topographic survey and in-situ bulk density data.
CEO Geoff Hiller says the increased grade and tonnage are being factored into the DFS due for release in Dec.
PNM would re-establish a regional exploration program in 2023 to further expand Kolosori’s resource base.

Australian-based explorer Aurora Energy Metals has confirmed its flagship project in SE Oregon as one of the largest uranium resources in the USA with the posting of a measured-indicated-inferred resource of 50.6Mlb (107.3Mt @ 214ppm U3O8).
The 34% increase includes a maiden mineral resource of 32.9Mlb @ 251ppm as well as a high-grade zone holding 19.2Mlb @ 485ppm.
MD Greg Cochran says the results boost the company’s confidence to advance the Aurora project through metallurgical testwork and techno-economic studies.

Australian explorer Vertex Minerals will continue its quest for bonanza grades it believes lie beneath historic mine workings after delivering an updated resource of 227,000oz (837,000t @ 8.5g/t) at its Reward gold project in central NSW.
The indicated-inferred JORC resource calculated by independent consultant Groundwork Plus lifts the global resource to 485,000oz (4.6Mt @ 3.3g/t) for Vertex’s 100%-owned Hill End and Hargraves projects 200km NW of Sydney.
Exec chairman Roger Jackson says the Reward resource sets the foundation for the company’s drilling down-plunge and below workings that historically delivered 435,000oz gold at 309g/t.

The strong performance by its Big Bell mine since reaching commercial production in the March 2022 qtr has encouraged West Australian miner Westgold Resources to push forward with expansion studies for the Murchison region project.
After Big Bell delivered 22,100oz gold from the mining of a record 274,444t high-grade ore in the Sept qtr (Q1FY23), Westgold says it can now deliver a sustainable 1.4Mtpa to the Tuckabianna processing plant that will be well within the capacity of its existing mining fleet.
Westgold has completed a scoping study and aims to reach initial PFS results in Q4FY23 on a conventional long-hole stoping operation well below Big Bell’s existing sub-level cave.

Australian contract miner Macmahon has won a seven-plus-two years opencut mining load and haul plus crusher feed contract at Talison Lithium’s Greenbushes mine in WA’s southwest. It expects the contract to deliver over $A1.1B revenue over its initial term.
Macmahon expects to finalise conditions and execute the contract within 30 days with Talison Lithium, the JV company owned 51% by Tianqi Lithium and IGO and 49% by Albemarle Corporation.
It is due to commence work at the long-lived mine 250km S of Perth in July 2023.
Macmahon expects to deploy its existing mining fleet initially, with up to about $128M to be spent on acquisitions in FY24-28.

Metals processor Jubilee is set to begin the ramp-up of operations at its southern copper and cobalt operations in Zambia with the first production of export-grade cobalt from its Sable refinery.
Jubilee will initially target production of 50t contained cobalt metal, equivalent to about 220t of final product, before ramping up to 1,200tpa contained cobalt metal representing 5,280t final product.
First sales of by-product cobalt are targeted for end-Dec.
Sable has also commissioned the direct leaching and refining of copper sulphide material, bypassing the traditional power-intensive smelting process, in addition to the recovery and refining of its copper oxide concentrates.

Azerbaijan gold, copper and silver producer Anglo Asian Mining has commenced the next step in its ambition to reach mid-tier production status at over 100,000ozpa gold-equivalent with the start of work on the $US2.5M expansion program at its Gedabek flotation plant.
The project, which will double its capacity to 160tph from the March 2023 qtr, is part of the company’s short and medium-term capacity growth to process ore from new mines and improve operational flexibility.
The expansion will be funded from existing cash resources.

African technology metals company AfriTin Mining has lifted production from its Namibian operations to 454t tin concentrate for the half-year to August 2022, up from 368t in the corresponding period. Production of contained tin was 286t (H1FY21: 227t).
A fall in average tin prices and the timings of settlement adjustments lowered revenue to £4.73M (£5.07M), resulting in total comprehensive losses of £2.43M (profit £0.15M).

International engineering and consulting business DRA Global has won its first operations and maintenance services contract in the Asia-Pacific region with the award of a multi-million dollar contract by Bravus Mining & Resources at its Carmichael thermal coal mine in Australia.
DRA is no stranger to the central Queensland mine, where it was responsible for the coal handling and preparation plant engineering procurement and construction.
Under the new contract, which runs for three years with two one-year extensions, DRA will supply people and equipment for the CHPP, people and equipment plus stockpile management and reclaiming services at the train load-out facility and maintenance planning, scheduling and all maintenance.

Australian explorer QMines has doubled copper-equivalent resources at its 100%-owned Mt Chalmers mine in N Qld, posting an updated measured, indicated and inferred estimate of 11.86Mt @ 1.22% CuEq for 144,700t contained metal.
The upgrade, calculated by Hyland Geological and Mining Consultants from recent drilling, improved geological modelling and a significant increase in bulk density readings, also lifts measured and indicated resources at the historic mine just 17km NE of Rockhampton to 10Mt.
It includes a maiden resource for the Woods Shaft deposit, located 700m from the main deposit.
QMines has delivered four resource updates since its listing 18 months ago, and is continuing large-scale drilling campaigns with plans for a further update soon.

Private equity firm Kinterra Battery Metals Mining Fund has declared its $A45M cash offer for Cannon Resources unconditional after building its stake in the Western Australia-focused nickel explorer to 34.2%.
The bid by Kinterra’s wholly owned subsidiary Kedalion Nickel is supported by Cannon’s directors and major shareholders.
The bid implementation agreement allows Kedalion to appoint a majority of board members on reaching 50.1% and move to compulsory acquisition at 90%.
Cannon says Kedalion will be able to take its flagship Fisher East project in the Northern Goldfields region to the next stages of intensive project development work.

Australian copper producer 29Metals sees greater organic growth potential for its 100%-owned Golden Grove mine in WA’s Mid West region after completing feasibility studies for its potential third mining front at Gossan Valley and the prefeasibility study for its Cervantes deposit.
Gossan Valley faces development capital costs of $A88M to deliver 326,000tpa ore, with potential to reach 550,000tpa, over an initial 6-year mine life.
29Metals says Gossan Valley can increase operating flexibility and de-risk the overall production profile and Cervantes has potential to extend the operating life of the Scuddles underground mine.
It now aims to begin regulatory approval processes for Gossan Valley and resource conversion drilling at Cervantes in 2023.

Australian explorer Coda Minerals is confident it sees no technical barriers to mining after completing a positive scoping-level study for the cornerstone Emmie Bluff copper-cobalt deposit at its 100%-owned Elizabeth Creek project in SA’s Olympic Copper province.
The study points to steady-state 2.5Mtpa production at an average grade of 1.86% copper equivalent over a 17-year mine life, utilising conventional underground mining drill-and-blast techniques and fleet.
CEO Chris Stevens says Coda aims to finalise a scoping study on Elizabeth Creek integrating the mine plan, cost estimates and financial model by Q1FY2023.