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Sand Queen on crest of redevelopment

Sand Queen on crest of redevelopment

WA gold producer Reed Resources has signed a memorandum of understanding with Crest Minerals for the sale of its subsidiary Sand Queen Gold Mines, the holder of the Comet Vale gold project in the Eastern Goldfields. Under the terms of the agreement – which is subject to due diligence, a capital raising and necessary approvals – Crest will acquire the Comet Vale project and Sand Queen gold mine for $6 million, after having already paid a $100,000 deposit. The deal also includes Reed’s 1 per cent zinc net smelter royalty from production on the Nimbus silver-zinc mine, which Reed divested to MacPhersons Resources in 2011, subject to MacPhersons not exercising its pre-emptive right to purchase the royalty. Upon completion of...

Inadequate roads pose hinderance risk to SA development

Inadequate roads pose hinderance risk to SA development

THE South Australian branch of the Civil Contractors Federation of Australia is calling on the state’s government to upgrade a central road transport route through and around Port Augusta to assist the growth of the resources sector. The lobby group warned that a lack of vital transport infrastructure in the state’s northern region was severely hindering its economic development. “The important transport gateway – known as Yorkeys Crossing – is in major need of redevelopment as it currently falls far short of what is required to promote an expansion of the mining, oil and gas, and other important industry sectors in the state,” the Civil Contractors Federation said in a statement. Over-size vehicles are currently not permitted to use Port...

Acclaimed businesswoman scoops top resources award

Acclaimed businesswoman scoops top resources award

JULIE Shuttleworth – general manager at Barrick Australia’s Granny Smith gold mine – has been named the 2013 Women in Resources Champion at the Chamber of Minerals and Energy’s annual Women in Resources Awards ceremony. Held over a breakfast last month at the Perth Exhibition and Convention Centre, the awards ceremony acknowledged the contribution of women within the Australian mining, oil, gas, and engineering fields. Coinciding with International Women’s Day, the event was attended by about 800 people, wherein many of Australia’s highest flying women were recognised for their invaluable contribution to the resources sector. Along with the overall winner, awards were divided into several categories including: Outstanding Company Initiative (winner, Chevron); Outstanding Professional Woman (Vanessa Guthrie of Toro Energy);...

Drilling gets green light at copper-nickel prospect

Drilling gets green light at copper-nickel prospect

INTEGRATED precious metal and uranium explorer Marmota Energy has applauded authorities for their final decision to approve first drill testing at its high-priority Durkin copper-nickel prospect in South Australia’s Gawler Craton. Following the government approval, Marmota announced mobilisation was set for 25 March to the rig site at Durkin, near the company’s Indooroopilly gold project and Challenger gold mine. Marmota conducted geophysical surveys in late 2012 after laboratory assays of the company’s initial surface samples confirmed copper and nickel mineralisation. Within these positive initial results, multiple coincident EM conductor, gravity and surface geochemical targets were identified for first-round drilling. The company reported that it maintained “reserved anticipation” for the mineralisation potential within several parts of the Durkin area, with multiple...

Explorer looks to continue run of exciting high-grade discoveries

Explorer looks to continue run of exciting high-grade discoveries

DIVERSIFIED explorer Core Exploration has initiated a follow-up drill program on an exceptional uranium discovery at its wholly owned Fitton project in northern South Australia. The 2500m reverse circulation (RC) drilling program will target down dip and strike extensions of the high-grade uranium mineralisation – including 5m at 0.25 per cent uranium oxide – which were discovered during the company’s maiden drilling program in late 2012 at the Scott Lee prospect within Fitton. Core stated that program would also follow up on an anomalous uranium intersection at Fitton’s Hamilton prospect and surface mineralisation (1400 parts per million uranium oxide) found recently at the newly discovered Bruce Lee prospect – 300m west of Scott Lee – in February this year. Assay...

Joint venture cues expansion for Indian iron ore

Joint venture cues expansion for Indian iron ore

A $12.2 million joint venture (JV) agreement with prominent Andhra Pradesh company Vijay Group has positioned Perth-based NSL Consolidated to rapidly expand its Indian iron ore operations. “In previous calendar years, the Vijay Group’s extensive iron ore and coal mining contracting business has been operating at a 70 million tonne per annum rate,” NSL managing director Cedric Goode said. “Their extensive equipment and operating/management expertise will be integrated into the JV as quickly as possible, which has significant strategic benefit to NSL,” he said. “NSL and Vijay are targeting the JV to be operating at an estimated 1.5 million tonnes per annum of saleable iron ore within two years, with potential to increase this target further in four to five...

Failed miner suffers another setback

Failed miner suffers another setback

A heads of agreement (HOA) between failed base metals miner Kagara and Mungana Goldmines has collapsed after unfavourable ruling from the Australian Tax Office. An agreement was reached in December whereby Kagara would hand back its 95.6 million Mungana Gold Mines shares, in exchange for the return of the gold rights and cancellation of other debts between the companies. On 21 February, 2013, Mungana Goldmines announced it had received a private ruling from the ATO which “does not confirm the full availability of tax losses to offset any tax liability arising from the HOA transaction”. As a result of this failed key condition, the HOA it was terminated. The administrators of Kagara and Mungana have agreed to continue discussions with...

Higher estimate brings new development opportunities

Higher estimate brings new development opportunities

MAJOR iron ore producer Fortescue Metals Group’s Nyidinghu deposit has a much larger resource after continued definition drilling revealed an increase of 450 million tonnes. Nyidinghu, northwest of Newman in the Central Pilbara, is now estimated to contain 2.46 billion tonnes using a cut-off grade of 52 per cent iron, with measured resources of 23mt at 59.6 per cent iron and indicated resources of 580mt at an average grade of 58.1 per cent. The remaining 1.86bt is inferred. “Fortescue exploration team is confident that ultimately the resource at Nyidinghu will exceed 3bt when all resource definitio drilling has been completed,” the company stated. An estimate was completed at a cut-off grade of 59 per cent iron, which is a total...

Strategy complete with second sale

Strategy complete with second sale

APEX Minerals is set to sell its second gold project in as many months, in line with its new company strategy. The company announced that it had signed a memorandum of understanding with Ever Prosperity Investment in March for the $50 million sale of its Wiluna gold mine in WA. In return, Ever Prosperity would immediately subscribe for 8,333,333 Apex shares at $0.06 per share for a total subscription of $500,000. As part of the MOU, Apex provided Ever Prosperity with an exclusive 60-day due diligence period during which the shares would be held by a third party. The transaction followed the February sale of Apex’s Youanmi gold project to Infinity Fame for $15 million; the first step under the...

Australian mining in need of productivity push

Australian mining in need of productivity push

AUSTRALIAN miners are fending off hits from all sides, with plunging iron ore prices and concerns about declining productivity coming to the fore in recent weeks. In late March, iron ore miners led a downward turn in the Australian sharemarket spurred by fears of declining steel production in China and a bleak outlook for iron ore prices from Goldman Sachs. The global investment bank predicted that iron ore prices would fall from US$139 per tonne in 2013 to US$80 per tonne by 2015; it also downgraded the London listings of global miners BHP Billiton and Rio Tinto, a move that had flow-on effects in Australia. The Goldman Sachs forecast saw the S&P/ASX200 close at its lowest level since early February;...

Online mentor program to benefit women in mining

Online mentor program to benefit women in mining

THE Australian mining industry’s first dedicated virtual mentoring program is expected to benefit women working across the sector nationwide. Launched on 20 February by the Australian Women in Resources Alliance (AWRA), the e-mentoring program would connect experienced mining, oil and gas professionals with women in earlier phases of their careers. The program would be delivered by resource industry employer group AMMA, with support from the Australian Government under the National Resource Sector Workforce Strategy. AMMA director of group services Tara Diamond said the first round of e-mentoring partnerships had started, with both men and women mentors providing guidance to women seeking to further their resource careers. “The AWRA e-mentoring program is a key part of AWRA’s wider strategy to increase...