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Warden recommends refusal of uranium exploration licences

Warden recommends refusal of uranium exploration licences

THE WA Department of Mines and Petroleum mining warden has recommended the refusal of three uranium exploration licences sought by Cauldron Energy, based on inadequate funding. The licences, adjacent to pastoral leases on the Minderoo pastoral station in the Pilbara, would extend Cauldron’s ground around its flagship Yanrey project. Following a December hearing, the mining warden concluded that Cauldron did not have adequate funding in place to carry out the proposed exploration. Cash available to the company at the end of the December 2013 quarter was about $487,000, while listed investments readily convertible to cash for exploration purposes totalled $580,000. Cauldron executive chairman Tony Sage said he was disappointed by the decision and would urge Mines and Petroleum minister Bill...

Malian gold venture given the green light

Malian gold venture given the green light

EMERGING West African gold developer Papillon Resources will proceed with its flagship Fekola project in Mali, after securing a mining permit from the Malian Government. The mining licence is valid for 30 years and covers the complete 75 square kilometre area of the Fekola exploration permit, on the border of south-western Mali. The mining permit, in conjunction with the company’s existing environmental permit (awarded in April 2013), is the final milestone permit required for the mine development. The document was granted following a recommendation to the government by the Malian Ministry of Industry and Mines. In early February the company announced its latest drilling results from the Fekola tenements, including 9m grading 2.34 grams per tonne of gold, and 4m...

Nickel miner posts half-year profit jump, raises production guidance

Nickel miner posts half-year profit jump, raises production guidance

IN a dramatic turnaround from its $96.2 million loss in the second half of 2013, Australian nickel miner Western Areas has posted a 29 per cent rise in first half-year profit to $2.7 million. Western Areas managing director Dan Lougher said it was satisfying to be one of the few nickel mining companies in the world to return a profit. “The standout financial measure for the half was the $19.2 million in free cash flow we generated, which was a $24.2 million turnaround from the previous half,” he said. In light of continued strong project performance, Western Areas has upgraded its production guidance for 2014, while simultaneously predicting a slight drop in production costs. The company’s original forecast of between...

‘Social licence’ ambiguity impacting companies and communities

‘Social licence’ ambiguity impacting companies and communities

NEW research shows that the concept of ‘social licence’, often used by Australian mining companies to validate operations in local communities, is debateable, poorly defined and misleading. A study by public policy analyst Dr Sara Bice, based at the University of Melbourne’s School of Government, examined how mining companies conceptualised and defined their own social licence. Dr Bice voiced concerns about how these licences were applied in practice. “Mining companies are increasingly claiming to have a ‘social licence’ to operate in certain areas because of perceived benefits to the local community,” Dr Bice said. “But claims to this ‘licence’ are misleading because the term isn’t formally defined anywhere in law,” she said. “A traditional licence involves one party empowering another...

Survey finds strong copper indicators on NT tenements

Survey finds strong copper indicators on NT tenements

AN electro-magnetic survey on tenements in the Northern Territory has returned positive results for Australian explorer Rox Resources, showing signs of possible copper sulphide mineralisation accumulations. The versatile time domain electro-magnetic (VTEM) survey conducted on the Bonya project tenements, 350km east of Alice Springs, aimed to find signatures similar to those seen in the adjacent Jervois deposits. KGL Resources’ neighbouring Jervois base metal project has an estimated mineral resource of 13.5 million tonnes grading 1.3 per cent copper and 25 grams per tonne silver. The VTEM survey identified 10 anomalies, including three considered ‘high priority’. According to a company statement, the B10 target had a similar electro-magnetic signature to that seen at Jervois, while B01 and B03 were “strong, well-defined...

Radioactive substance spilled during mine shutdown

Radioactive substance spilled during mine shutdown

PERTH-based uranium producer Paladin Energy has spilt radioactive chemicals in a road incident while closing down its Kayelekera mine in Africa. The project – 52km west of Karonga in northern Malawi – was placed on care and maintenance in an effort to stem global uranium supplies and drive demand upwards in the face of a market price slump. However while completing the site’s last shipments, a truck carrying a single container of uranium oxide concentrate toppled sideways, as the driver reportedly failed to negotiate a curve in the road. A “small amount” of uranium oxide concentrate was spilt, 8km from the mine site origin. The truck was bound for export from Walvis Bay port in Namibia, in a convoy of...

Miner raises funds to boost gold production

Miner raises funds to boost gold production

WEST African-focussed gold producer Perseus Mining has raised about $32 million through a share placement to institutional investors, after reporting a $4.02 million after-tax loss in the second half of 2013. Perseus issued 68.7 million ordinary shares – worth about 15 per cent of its existing capital – at $0.47 per share in February. UBS and GMP Securities acted as managers and book runners for the placement. In a statement, the company said the newly raised funds would be used to accelerate productivity improvements and access to the eastern pits at its Edikan gold mine in Ghana, as well as for balance sheet flexibility. Perseus managing director and chief executive Jeff Quartermaine said the company was pleased with the level...

Native title agreement lays ground for mining licence

Native title agreement lays ground for mining licence

GOLD company Gascoyne Resources has achieved a significant milestone with the granting of a mining licence for its wholly-owned Glenburgh project. The company signed a native title agreement in early February, paving the way for the rapid granting of the lease in WA’s Gascoyne region, 250km east of Carnarvon. The agreement with the Wajarri Yamatji Native Title Claimant Group includes opportunities for community development including education, training, employment and contracting opportunities. “The signing of the project wide native title agreement is a significant step forward for the Glenburgh project,” Gascoyne managing director Mike Dunbar said. “It allows for the grant the current , any future mining lease applications and other tenure required for the development of the...

Gold miner ramps up drilling after capital raising

Gold miner ramps up drilling after capital raising

BURGEONING gold producer Doray Minerals will accelerate test drilling at its high grade Andy Well project in WA’s Murchison Region, following the completion of a $17 million fundraising placement. The placement, totalling 21 million fully paid ordinary shares at $0.80 per share, was made available to investors in late January, following promising results from the Suzi and Judy zones within Andy Well. According to Doray reports, the share placement was “heavily oversubscribed”, with the issue price representing a 6 per cent discount from the company’s 10 day volume-weighted average price. Doray’s latest reverse circulation drill results indicated a high grade norther mineral extension in the Suzie zone, with 0.5m at 59 grams per tonne of gold within a wider interval...

Study results confirm low costs and quick returns

Study results confirm low costs and quick returns

A feasibility study of Pilbara Minerals’ advanced Tabba Tabba tantalum project near Port Hedland indicates “robust” project viability through low capital and mining costs. The company is now on track to join the ranks of junior miners, with first production forecast for the third quarter of 2014, subject to project funding. The study defined an initial mine life of 19 months producing about 365,000 pounds of tantalum pentoxide (Ta2O5), within a minimum 5 per cent Ta2O5 concentrate, delivering earnings before interest, tax, depreciation and amortisation of $16 million. Pilbara Minerals chief executive and chief geologist John Young said completion of the feasibility study was a significant milestone. “Based on the results of the study, Pilbara Minerals and its joint venture...

WA miner marks first shipment from Kenyan project

WA miner marks first shipment from Kenyan project

MINERAL sands developer Base Resources has exported the first shipment from its Kwale project in Kenya, with 25,000t of ilmenite leaving port destined for China. Base purchased the Kwale mineral sands project – 50km south of Mombasa – in mid-2010 and began production of heavy mineral concentrate in October last year. In that quarter Base produced 42,472 tonnes of heavy mineral concentrate. The Perth-based company was granted an export permit in early February to ship the ilmenite from its Likoni marine facility to a Chinese customer aboard the MV African Eagle, with the vessel leaving port on February 18. Likoni marine facility was completed in December and Base has been stockpiling finished ilmenite and rutile product in its 60,000t capacity...