Category: Headline

WHILE not immune to the fluctuations of the market, Sandfire Resources seems assured of a bright future due in large part to its high-grade, high-margin DeGrussa copper-gold-zinc project. The world-class DeGrussa project, in the northeast part of Sandfire’s Doolgunna project tenements and about 900km east of Perth, began production from both open pit and underground mining in February 2012, less than three years after its first exploration holes were drilled. The DeGrussa copper-gold resource was one of Australia’s most exciting recent greenfield discoveries: initial drilling returned some of the best intersections seen in the WA mining industry’s recent history, with the discovery hole DGDD-001 intersecting a total of 78.3m of high-grade copper-gold mineralisation including 53.2m at 17.3 per cent copper…

WATER scarcity affects more than one in six people around the world. According to the Australian Bureau of Statistics, the mining industry accounted for 4 per cent, or 489 gigalitres, of water consumption by industry in 2009; with metal ore mining the largest consumer at 298GL. The 2013 AusIMM Water in Mining Conference will address the management of this precious resource, during two days in Brisbane from 26 November. The conference will feature a three-day technical program, presenting more than 50 papers, as well as a trade exhibition, several workshops and multiple networking opportunities. Conference chair Professor Chris Moran said the event’s goal was to provide a platform for open and engaging discussion and collaboration between industry experts. “The idea…

EXPORTING the coal produced by six Bowen Basin mines, the Hay Point Coal Terminal (HPCT) handled 34,336,380t of coal during the 2013 financial year – significantly shy of its 44 million tonnes per annum nameplate capacity. However, with the highest throughput in the last three years achieved in June, at 4.1 million tonnes, the necessity of increasing the terminal’s capacity is evident. Owned by the BHP Billiton Mitsubishi Alliance (BMA) and operated by the North Queensland Bulk Ports Corporation (NQBPC), the Hay Point Coal Terminal – together with the DBCT Management-operated Dalrymple Bay Coal Terminal – is within the Port of Hay Point, one of the world’s largest coal export ports. “The majority of coal exported through the port is…

A predicted tungsten shortage has prompted Plymouth Minerals to acquire an 80 per cent stake in Aurum Mining’s Morille project for $420,000. Morille is a 5796-hectare brownfield exploration and development site in Spain’s northwest, comprising five investigation permits with multiple historic underground and open pit tungsten and tin mines. Plymouth was confident it would recover high grade minerals in the area, as it historically produced high grade tungsten concentrate until a fall in the commodities price forced the mine to close in 1985. Plymouth managing director Adrian Byass said he looked forward to developing the project with partner Aurum Mining. “The Morille project brings together the specialty metal and development skills of the Plymouth board and management and combines them…

THE Northern Territory Government has awarded Major Project Status to TNG’s Mount Peake vanadium-titaniumiron project. The classification formalises the government’s support for the project and allows TNG to move forward with securing funding from investors. Construction of the project is scheduled to begin in the first quarter of 2014, with production starting the year after. Mount Peake has an estimated mine life of 20 years and would deliver 15,300t of vanadium oxide, 375,000t of titanium dioxide concentrate and 1.13 million tonnes of iron oxide each year. TNG managing director Paul Burton said he was delighted to receive support from the NT Government. “Mount Peake is a large long-life project that will bring a range of important benefits to indigenous communities…

FOLLOWING a weakening of the uranium spot price, Paladin Energy has announced measures to cut costs by US$23 million for the 2014 financial year. Paladin operates two uranium mines in Africa – Langer Heinrich in Namibia and Kayelekera in Malawi – and recorded a loss of $US420.9 million for the 2013 financial year due to massive write downs on the value of its assets, caused by the weak uranium price. The company stated that while the lower commodity price didn’t detract from the strong fundamentals of uranium in the mid to long term, it did make the revision of far-reaching rationalisation and optimisation strategies pertinent. Paladin intended to reduce corporate overhead and exploration costs by 24 per cent (US$10.8 million)…

AUSTRALIAN and Canadian listed Chalice Gold Mines will soon be in a position to develop its Cameron gold deposit in north-western Ontario, following a merger with Coventry Resources. The two companies entered a binding term sheet for the proposed merger, which would combine Chalice’s cash position of $55 million with Coventry’s 100 per cent interest in the Cameron Gold Camp project. The deal comprises one Chalice share for every 1.78 Coventry shares, and values the latter at 23 per cent higher than its closing share price on Friday 27 September. The merger is the first step in Chalice’s strategy of acquiring quality resource assets capable of generating cash flow, and the nature of the agreement was designed to preserve its…

WA gold company Gascoyne Resources has published high grade indicated and inferred JORC resource results for its Golden Wings prospect in the Murchison region of WA, just days after obtaining formal mining approval for the wider Dalgaranga gold project. Golden Wings – one of the most northerly prospects within Gascoyne’s Dalgaranga gold project – has an initial combined indicated and inferred estimate of 450,000t of ore grading 3.7 grams per tonne of gold, to produce 54,000oz of gold when mined to a 2.0g/t cut-off, as estimated by independent consultants Elemental Geology. While modest in size, the shallow, high-grade nature of the deposit and its proximity to existing infrastructure is thought to provide an excellent opportunity for a highly profitable open…

THE Commonwealth Bank of Australia was recently mandated to provide a funding package to Unity Mining for the development of its Dargues gold project in NSW. The $45 million finance facility would be structured as a Gold Prepay for a three-year period, with an associated gold hedging facility to protect a portion of the revenue during the first 24 months of the loan. The funding package was subject to credit approval, completion of documentation and satisfaction of conditions precedent normal for a facility of this nature. According to Unity, the funding package “appropriately reflects the reduced risk profile of the enlarged group”. Unity acquired the Dargues project at ‘development ready’ stage through a merger with Cortona Resources in January. Cortona’s…

A US$41.5 million funding package outlined in early October will allow MZI Resources to develop its Keysbrook mineral sands project in WA. International private equity fund Resource Capital Fund (RCF) is expected to provide the equity/mezzanine finance portion of the Keysbrook funding and pave the way for MZI to complete the debt funding agreement with two Joint Lead Arranger banks. With the funding secured, MZI would be in the position to begin construction of the project late this year, with the intention of reaching first production by the December quarter of 2014. The Keysbrook project, 70km from Perth, is expected to produce 91,000 tonnes per annum of product from 110,000t of dry heavy mineral concentrate (HMC). Keysbrook has an unusual…

THREATS of a hike in WA mining royalties have caused several mining companies to band together, joining the Gold Royalties Response Group (GRRG) as the government reviews the state’s royalty rates. The GRRG was originally formed in 2010 and recently re-united with six new allies, aiming to “communicate the detrimental impact a royalty rate rise would have on WA’s gold industry and related stakeholders for consideration in the state government’s review of mineral royalty rates”. The group now includes Doray Minerals, Evolution Mining, Gold Fields, Newmont Asia Pacific, Northern Star Resources, Norton Gold Fields, Ramelius Resources, Regis Resources, Silver Lake Resources and St Barbara. Gold miners currently pay 2.5 per cent of the value of their resource in the ground,…