Mining Breaks

Explorer Katoro Gold has extended the deadline for finalising its JV with privateer Blyvoor Gold Operations that is targeting the production of over 1.2Moz gold plus other minerals from six South African tailings dams.
The agreed extension of the target date for establishing their unincorporated JV to June 30 allows more time to consider additional proposals received from potential funders since it published the Blyvoor scoping study early this month.
Exec chairman Louis Coetzee says it’s received 14 expressions of interest despite challenging COVID-19 business conditions, further validating the robust and attractive Blyvoor project.

The impact of COVID-19 restrictions on award and commencement of new projects has Australian-based engineer and project manager Lycopodium forecasting NPAT of about $A11.5M for the year to end-June (FY20), compared to its $16.5M result last year.
Lycopodium previously forecast a FY20 result of $14.1M before withdrawing its guidance on March 25 due to the pandemic’s effect on global economic activity.
While progress on existing projects is generally unaffected, MD Peter De Leo says project delays or suspensions due to COVID-19 are significantly impacting new opportunities.
De Leo says Lycopodium is continuing to work with its workforce and clients to meet its current project obligations, but official restrictions to contain the pandemic are likely to constrain economic activity for an extended period.

International explorer RTG Mining can progress its flagship Mabilo gold-copper project in SE Luzon, Philippines after confirmation the mineral production sharing agreement for its nearby Nalesbitan project has been expanded to include the high-grade deposit.
RTG’s feasibility study outlined a $US161.4M capex openpit mine and process plant to produce 38,300tpa CuEq and 160,000ozpa AuEq over an initial 8 years.
After the slowing of regulatory approvals in the Philippines due to COVID-19 restrictions, a new push to kick-start the national economy indicates more positive approach to mineral permitting for responsible miners.

Barrick Gold has offered an extra 15% stake in its Porgera gold mine in Papua New Guinea to local landowners in a bid to break an impasse with the national govt over the mine’s future, Reuters reports.

Fortescue Metals has been refused leave to appeal a court decision that gave an Aboriginal group exclusive title rights to land at FMG’s Solomon Hub iron ore mine in the Pilbara region of Western Australia, Reuters reports.
In 2017, Australia's Federal Court ruled in favour of the indigenous Yindjibarndi people in a longstanding claim over land used by FMG to mine millions of tonnes of iron ore. The ruling handed the Yindjibarndi people exclusive native title rights over 2,700sq km of land covering the Solomon hub, which has a production capacity of 70Mtpa to 75Mtpa.

Euro Manganese has begun a formal global search for a strategic development partner for its 100%-owned Chvaletice manganese project in the Czech Republic, where it aims to produce 1.19Mt high-purity electrolytic manganese metal over 25 years from recycling a 27Mt tailings resource.
While it has received expressions of interest from potential partners, the Canadian-based company says there have been no binding offers.
It will work with Bacchus Capital Advisers to evaluate advancement and development options through an optimal ownership/capital structure.
Euro says, as potentially Europe’s only primary producer of high-purity manganese products, Chvaletice can have significant impact on sustainable battery manufacturing.

Gold production from Canadian miner Robex Resources’ sole-producing Nampala mine in Mali has fallen to 14,918oz in the Mar 2020 qtr (Q1 20) from Q4 19’s 17,361oz, with sales down to 14,646oz from 17,742oz for revenue of $C30.8M.
The result was on ore processed plunging to 476,720t from 539,128t, head grade down to 1.10g/t from 1.115g/t and recovery to 88.8% from 89.8%. Cash costs sold were $560oz and AISC $968oz.

A review of past resource estimates has resulted in Australian explorer Pure Alumina revising indicated and inferred gold resources to 177,652oz (2.3Mt @ 2.38g/t) at Hargraves, one of two prospects at its 100%-owned Hill End project in central NSW.
The review by SRK Consulting to align the Hargraves resources with JORC 2012 standards is slightly lower than before, but Pure Alumina says it is a key step in the project's development by giving it much greater confidence in the robustness of the model and data.
Pure Alumina’s total Hill End project inventory is now 501,552oz (4.7Mt @ 3.3g/t), including JORC 2004 resources at the Hawkins Hill-Reward project.

The potential to establish a floating port off the coast of the Republic of Congo is giving new impetus to planning for the proposed 30Mtpa Zanaga iron ore project 250km NW of Brazzaville.
UK-listed Zanaga Iron Ore Co, the 50%-minus-one share partner with project manager Glencore, says a concept study demonstrates an offshore facility fed by a slurry pipeline from the inland minesite could significantly enhance the project economics.
A feasibility study in 2014 assessed a transhipping operation, but the new plan would save $US184M in capital costs on the proposed initial 12Mtpa development without impacting operational costs.
Another option being considered is a 1-5Mtpa early production scenario using processing facilities and other logistics solutions through ROC or neighbouring Gabon.

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.