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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…

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…

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…

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…

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…

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…

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…

THE Department of Mines and Petroleum (DMP) has issued a prohibition notice to Fortescue Metals Group, ordering the cessation of blasting at its Christmas Creek mine in the Pilbara. The order was issued following a safety incident with a contractor in late January and Mining News reported that an investigation was underway. DMP executive director of mines safety Simon Ridge said the incident occurred during charging operations in a mining area. However, “no explosives were detonated and no one was injured as a result of the incident”. Fortescue assumed full ownership and operational responsibility for two ore processing facilities at Christmas Creek early this year, following two fatal incidents at the project in four months. The DMP investigation follows a…

JUNIOR explorer Ram Resources has picked up another five tenements in WA’s Fraser Range nickel-copper belt, adding an extra 163 square kilometres to its holdings in the area. The newly acquired Fraser Range North tenements lie 150km north of Ram’s Fraser Range project and Sirius Resources’ Nova nickel-copper deposit. Under the deal signed with an unnamed private prospector, Ram will pay $40,000 now and a further $40,000 within six months, with a final payment of $50,000 per tenement due in two years if the company wants to claim a 100 per cent stake in the licenses. The vendor will retain a 1.5 per cent net smelter royalty. In a statement, the company said it would undertake an aggressive exploration program…

THE world’s first seabed mining operation could be back on track after Nautilus Minerals ended months of uncertainty by terminating its agreement with the State of PNG. A statement released by the company made it clear that the PNG Government had failed to purchase a 30 per cent interest in the Solwara 1 project, contrary to an arbitrator’s award issued in October last year. In accordance with the State Equity Option Agreement (SEOA) signed by the parties in March 2011, Nautilus terminated the agreement and would now claim damages. “A commercial resolution with the state has not been achieved in a reasonable timeframe,” Nautilus reported in an 18 February investor update. “There was too much uncertainty created by the state’s…

BILLIONAIRE Andrew Forrest has lost a bid to stop a mineral sands joint venture from mining on his family’s Pilbara-based cattle station, after nearly three years of dispute. Perth-based explorer Onslow Resources and project partners Yarri Mining and Quarry Park were granted conditional approval to mine the Ashburton River bed, 100km south of Newman, in late January. Mr Forrest, founder of iron ore giant Fortescue Metals Group, had argued against the approval, stating the development would damage the Ashburton River environment and surrounds, and would prevent him from effectively using the land at his privately owned pastoral property, Minderoo. According to The Guardian, Mr Forrest’s submission to the WA Warden’s Court stated the mining operation would “sterilise and degrade the…