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ASX-listed Gascoyne Resources has acquired an 80 per cent interest in the Dalgaranga gold project and surrounding exploration tenements in WA. As part of the agreement, Gascoyne will issue 7 million shares and pay $150,000 to a private vendor. The company has the option to purchase the remaining 20 per cent of the project if the vendor chooses to exchange it for a 2 per cent net smelter royalty. Focussed on the delineation of gold and base metal projects in Australia, Gascoyne is currently at an advanced development stage with its Glenburgh project, which is estimated to contain 703,000oz in gold deposits. The project currently has a JORC-compliant gold resource of 7.5 million tonnes grading of gold 1.58 grams per…

SUNDANCE Resources will continue to suspend share trading until a takeover agreement has been reached with China’s Sichuan Hanlong Group. Last month, Hanlong was given the green light by China’s National Development and Reform Commission (NDRC) to purchase the international iron ore company, conditional to a “reasonable acquisition price”. Sundance said in a statement share trading would remain suspended until negotiations for the acquisition price had been completed, “at which point in time it will have sufficient certainty to update the market”. In May, Hanlong announced it had proposed to acquire 100 per cent of Sundance for $0.54 per share, valuing the company at $1.7 billion. Sundance board members said the price was attractive and recommended that shareholders vote in…

THE Green Range coal project near Albany in WA is now under the control of Australia Minerals and Mining Group (AMMG). The 1123 square kilometre project is the newest addition to AMMG’s tenement holdings in the Great Southern region, with the company targeting the potential coal seams of the Green Range sub-basin. AMMG secured one granted and two new tenement applications for Green Range, and is estimating an exploration target of between 400 million tonnes and 500mt of thermal grade coal. The strategically located project is about 55km from the Albany port and town. AMMG managing director Ric Dawson said the acquisition boded well for the company. “The Green Range coal project is a significant addition to the company’s tenement…

PERTH-based explorer Trafford Resources has doubled its South Australian Gawler Craton landholding following its acquisition of a 51 per cent interest in a joint venture surrounding Kingsgate Consolidated’s Challenger gold mine. Trafford purchased fellow gold explorer Southern Gold’s share in the Challenger JV with Dominion Gold, a wholly-owned subsidiary of Kingsgate. Trafford will control a further 5652 square kilometres of highly-prospective exploration licences on the Gawler Craton once final documentation for the sale and purchase of the 51 per cent JV interest has been completed using $500,000 cash and 3 million Trafford shares. Once Trafford enters into a feasibility study on the project, it will issue a further $1 million worth of Trafford shares to Southern Gold. “Together with its…

Mining is set to produce more than 300,000 ounces of gold annually after agreeing to acquire Canadian-based gold mining company Avion Gold. The C$389 million deal involves Endeavour acquiring all of the issued and outstanding common shares of Toronto-listed Avion via a court-approved plan of arrangement. The acquisition will create one of West Africa’s largest mining companies, comprising three producing mines, a fourth mine currently under construction and many exploration opportunities. Under the agreement, Avion shareholders will receive 0.365 of an Endeavour common share in exchange for each Avion common share: valuing Avion at C$0.88 per share. The takeover will increase Endeavour’s gold production forecast by about 50 per cent to between 282,000oz and 304,000oz for 2012, and increase its…

IRON ore giant Fortescue Metals Group has borrowed US$1.5 billion to cover its expansion costs in the Pilbara region of WA. The loan comes one month after Fortescue announced it would need to return to debt markets following an increase in project costs. The dual tranche credit facility will mature on December 31, 2013 and comprises a US$750 million term loan and a revolving credit facility of US$750 million. Fortescue chief financial officer Stephen Pearce said in a statement that the loan would enable the company to meet its financial obligations and continue development at projects such as the Chichester hub expansion. “The facility provides a short-term funding solution to support the company’s expansion to 155 million tonnes per annum,”…

GOLD exploration company Atlantic Gold has bolstered its asset portfolio with the purchase of the Cochrane Hill gold project in Nova Scotia, Canada. Cochrane Hill covers 8.3 square kilometres, 80km east of Atlantic Gold’s Touquoy gold project, and has more than 10 million tonnes of total indicated and inferred resources grading 1.7 grams per tonne. The project comprises 53 mineral claims. Atlantic reported that in the first stage of a 5000m resource development diamond drilling program, Cochrane Hill produced “excellent results”, with shallow mineralisation suitable for open pit mining discovered across intersects of up to 31m, including 2.43g/t from 19m depth. “The acquisition of 100 per cent interest in the Cochrane Hill gold project is a major step forward in…

MULTIPLE high-grade polymetallic intercepts from Kidman Resource’s newly acquired Home of Bullion project in Barrow Creek, Northern Territory, have increased the project’s potential to host an open pit resource. Assay results for the first three holes of the maiden 24 reverse circulation (RC) drill hole program, testing the main lode, have been received with the results from the remaining 21 holes pending. Highlights included 4m grading 4.7 per cent copper, 5.1 per cent zinc, 84.6 grams per tonne of silver, 1.3 per cent lead and 0.52g/t of gold from 49m. The results confirmed previous high grade drill intercepts at the Home of Bullion main lode, with follow up diamond drilling scheduled for mid-September. Kidman has also initiated a detailed airborne…

EXPLORATION drilling at the Burtville mining centre in Laverton has delivered a 140 per cent increase in the mineral resource, Focus Minerals has announced. The Australian gold producer and explorer was able to increase the mineral resource estimate of the area to 5.7 million tonnes grading 1.3 grams per tonne for 235,000oz of contained gold. Chief executive Campbell Baird said in a statement that the drilling highlighted the enormous potential of the site. “This is a significant increase in the mineral resource from a drilling program that has only focussed on one small portion of the Burtville system,” Mr Baird said. “Very little drilling has been previously undertaken within a 2km by 1km area around the old pit, where old…

QUEENSLAND explorer Sovereign Metals has announced its intention to acquire McCourt Mining, which owns the Central Malawi graphite project in Africa. Under the sale agreement, Sovereign will pay $100,000 to McCourt immediately, followed by a payment of $900,000 and 12.5 million fully paid ordinary shares to complete the transaction. The transaction is subject to shareholder approval and due diligence. The 8070 square kilometre Central Malawi project comprises two tenements near the Malawi capital of Lilongwe and will be the company’s first international acquisition. To date, geological mapping and surface sampling has been conducted at the project and three prospects containing substantial amounts of high-grade graphite have been identified: Tuinchi, Kaolatsitsi and Mpatozombe. Metallurgical test work within the project has found…