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AIRCRAFT charter specialists Australian Air Solutions (AAS) tailors its time-efficient, cost-effective and comfortable charter services for mining companies and contractors of all sizes. “We understand FIFO, because I and all our staff have been there,” AAS managing director Brendon Hempel said. “Backing out the driveway to start another four or five hour journey to work can grow tired pretty quickly, so travel take any longer than it needs to.” The company can fly between 9 and 19 passengers from Brisbane direct to Moranbah, Emerald or Roma at unbeatable prices. “By supplying a regular contracted service to the mines, we can often provide prices 30 per cent per seat cheaper than the airlines,” Mr Hempel said. Cost...

MINING giant Rio Tinto has retained a positive economic outlook in the face of plummeting first half profits, due in part to sluggish demand from China. Despite posting results which exceeded the market expectations of about US$4.94 billion, Rio’s first half underlying profit of US$5.2 billion showed a 34 per cent decrease. The company attributed the US$2.6 billion profit drop to lower commodity prices, as well as increased operating costs and weaker production. “Lower prices were the main driver of a reduction in underlying earnings in the first half of 2012, but overall we continue to generate strong earnings and cash flows,” Rio chairman Jan du Plessis said. “Whilst we are mindful of short-term uncertainties we remain convinced of the...

EMERGING copper explorer and developer Hot Chili has achieved what it reported to be its “most significant milestone to date” as it looked to make a final mining decision for the Chile-based copper-goldmolybdenum Productora project within the next 12 months. The company acquired the Uranio lease – representing a critical 1.2km portion within the centre of the project – in a public auction held by the Chilean Commission for Nuclear Energy in July this year. The successful bid brought to a close consolidation efforts comprising nine separate deals with individual landholders spanning four and a half years, and opened the door for the potential development of a large-scale central pit at Productora, 5km south of the town of Vallenar in...

EMERGING miner Kentor Gold has poured the first gold doré bar from its wholly-owned Murchison gold project in WA. The bar weighed 1.13kg and was estimated to be approximately 90 per cent gold. Kentor managing director Simon Milroy said this was a big milestone for the company as it joined the ranks of gold producers. “The plant is settling down nicely, with the mill continuing to achieve higher throughput than designed on a consistent basis,” he said. “Initial gold production is sourced from the Burnakura plant’s gravity circuit. “Gold loadings on the CIL circuit’s carbon are building steadily.” Murchison, about 50km south of Meekatharra, comprises two deposits – Burnakura and Gabanintha – and is the first of...

URANIUM miner Paladin Energy has signed a US$200 million, long-term offtake contract (LTC) with a major US utility that will see it deliver 13.73 million pounds of uranium between 2019 and 2024. The company reported that it would fulfil its delivery commitment from either its current African mining operations (which include projects in Namibia, Malawi and Niger); a project yet to be developed; or from a combination of both options. A US$200 million prepayment will be made in tranches before January 31, 2013. To secure Paladin’s obligation to deliver product representing a specified prepayment amount, the utility will hold security on 60.1 per cent of Paladin’s Michelin project in Canada. Paladin reported that the percentage of Michelin secured would be...

MARKING the start of the annual Diggers and Dealers mining conference in Kalgoorlie last month, two major WA gold producers signed a deal that will see them merge into one of the largest gold mining companies in the state. The $426 million takeover of Integra Mining by Silver Lake Resources will create a major Australian gold producer with a 6.6 million ounce resource base and a forecast production rate of 400,000 ounces per annum by 2014. Under the agreement, Integra shareholders will be offered 1 new Silver Lake share for every 6.28 Integra shares. The Silver Lake offer values Integra at $0.452 per share. The transaction offers shareholders of both companies the opportunity to create material value, given the proximity...

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...