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Peninsula Energy progressing pre-production program at Lance Uranium Projects

Fri, 24 May 2013 23:23:39 +0800

Peninsula Energy (ASX: PEN) continues to progress pre-production operations at its Lance Uranium Projects in Wyoming with the recent execution of an Engineering, Procurement and Construction contract with TREC DB.

With the appointment of an Engineering, Procurement and Construction contractor and the high possibility that a Supplemental Environmental Impact Statement will be issued in November, Peninsula Energy’s Ross Project of the Lance Uranium Projects remains on track for full permitting later this year.

Additionally, delineation drilling carried out to optimise the well field patterns and design within the first production unit at Ross has intersected strong uranium mineralisation, some of which is outside the existing resource boundaries.

Its U.S. subsidiary Strata Energy has also advised that the public comment period for the Draft Supplemental Environmental Impact Statement (DSEIS) has now closed with pleasingly no extension requested by any of the relevant stakeholders.

This augurs well for the timely issue of the final SEIS in November 2013 and the Source Material License in December 2013.

“All indications are that we remain on schedule for full permitting of the Ross Project later this year,” executive chairman Gus Simpson said.

“In the interim we are continuing with the pre-production drilling and monitoring well installation program which is providing the final detailed information required for development. “

EPC Contract

Wyoming based ISL engineering group TREC DB, which won the EPC contract, has been working with Peninsula through the Feasibility and Optimisation study stages.

TREC had previously been engaged to perform the engineering and design work for the CPP and well fields and the new agreement encompasses the remaining design work as well as performance of procurement and construction going forward.

Pre-production drilling

Peninsula has also been carrying out pre-production drilling consisting of monitoring well installation, delineation drilling within and around the planned first production unit at Ross during the period from October 2012 to April 2013.

A total of 59 monitoring wells and 179 delineation holes for a total of 128,550 feet were completed at the Lance Projects during this period.

King River Copper completes buy-back, looks to get busy at Speewah Dome

Fri, 24 May 2013 21:26:57 +0800

King River Copper (ASX:KRC) has completed a buy-back of its own shares as part of a capital maintenance program, removing an "overhang" from the market, acquiring 13,065,999 shares for a consideration of $287,468.

Formally Speewah Metals, the company signalled it is edging closer to receipt of a Research & Development Tax incentive of $1.38 million, expected within the next 4-6 weeks.

King River is focused on copper/gold within the Speewah Dome in Western Australia, where surface rock chip samples have previously found anomalous copper and gold.

Todhunter was selected as one of three high priority exploration targets from the field work. Surface rock chips at two locations 90 metres apart along the Todhunter fault identified a zone of gold and copper mineralisation assaying 4.9 - 7.3 g/t gold with copper from 0.7 - 3.0% grade.

This zone is untested to the north and south. 3D modelling of magnetic data shows this fault is 2.5 kilometres long.

Grey-Hayden location

Not to be outdone, King River had amassed a comprehensive data set of magnetics, surveys, surface sampling and some drilling at Grey-Hayden. Previous samples graded up to 27.5% copper, 25 ounces per tonne silver and 4.95 grams per tonne gold.

Upcoming exploration work and studies will prioritise these two targets.

With an overhang of shares removed, King River is looking to pick up exploration momentum in 2013.

Hughes Drilling sees revenue and profit growth continuing in 2013

Fri, 24 May 2013 21:24:00 +0800

Hughes Drilling ASX:HDX) has re-affirmed that revenue and rig utilisation expectations for FY13 "are broadly in line" with previous guidance with a "moderating but still positive growth trend."

Production Drilling operations are expected to contribute around 85% of group profits for FY13 while Express
Hydraulics (the agency and distribution business) and Reichdrill (rig manufacturer, for the 3months since acquisition) are expected to contribute a combined 15% of FY13 group profits.

Hughes small delineation business is in “run-off” with its assets to be sold as opportunities arise.

Production Drilling – Revenue and profit growth

Average comparable period revenue continues to grow and is broadly consistent with guidance. As advised in the Half Year Report, growth has continued, albeit at a lesser pace than 1HFY13.

Revenue growth is being driven by mine owners increasing coal production and hence increasing blast hole metres drilled.

Increased coal production arises for several reasons not least of which is an objective to reduce average cost per tonne (increased production reduces allocated fixed costs per tonne).

Hughes’ positioning as an essential service provider in the production process of operating mines largely shields it from the problems faced by other service providers with business models focused on the exploration, development or construction phases of new mines.

Key sources of production drilling FY13 earnings growth:

- Full year contributions from rigs that commenced operations part way through FY12.
- New blast hole contracts commencing in FY13 (utilising new rigs).
- Stable rate profiles for new and existing contracts.
- Some cost increases in employee unit costs and we anticipate emerging modest cost increases in some US$ consumables.
- Growth favourably impacts balance sheet and cash position:
- Recent and pending rig acquisitions are funded from cash, not debt.
- Lower cash cost of rigs following the acquisition of Reichdrill.
- More conservative balance sheet following recent capital raising.
- Total borrowings are falling progressively in line with the budgeted debt amortisation program.

Production rig utilisation:

- Utilisation of the expanded fleet continues at 97%.
- Clients have advised of an increase in required metres to be drilled reflecting a step-up in coal production. Consequently utilisation is expected to remain at or near 97%.

Production rig fleet size:

- All new rigs have work programmes to commence immediately following usual prestart activities.
- By 30 June 2013 Hughes expects that the production rig fleet will have reached 38 rigs (the September 2012 Financial
Briefing indicated 38 to 40 rigs). The 38th rig is expected to arrive in the last week of June.
- 2nd half FY13 rig growth is therefore expected to be 4 new rigs compared with the 7 new rigs in the 1st half FY13.
- New rig acquisitions will continue to be made following the securing of a new or expanding contract.

Growth of Hughes’ production drilling activities is attributed to:

- Australian coal production rising (exports are expected to rise 13% this financial year).
- Hughes operating in coal mines that are generally lower on the cost curve.
- Hughes’ blast hole operations being a key part of an operating mine’s production process.
- Expanded demand from Hughes core “blue-chip” client base who’s objective is to reduce their average cost per tonne.
- Availability of quality equipment from highly productive service providers such as Hughes remains limited.

Significantly, Hughes’ blast hole service is a key part of the production process of open cut coal mines.

It is not exploration drilling, nor are exploration rigs suitable for coal sector blast hole drilling. Consequently, Hughes has not experienced the dramatic changes in activity that affected companies operating in the exploration sector.

Critically, Hughes’ share of the Queensland and New South Wales production drilling markets, which produce 96% of Australia’s coal exports, is estimated at 47%.

Reichdrill: Growth in demand from non-Hughes rig buyers (mostly for US and African mines) in FY14.

- FY14 budget/order book indicates 25+% growth over 2012 – majority of orders coming from USA & Africa.
- FY14 budget/orders excluding those from Hughes Production Drilling up ~40% over third party orders in 2012.
- Reichdrill expected to represent ~30% of FY14 HDX group revenue.
- Growth reflects the Hughes assisted restructuring of Reichdrill’s distribution network. Growth of the distribution
network to key international markets is an ongoing project – key targets are Indonesia (the world’s largest coal
exporter), Africa, and Russia.
- Growth Capex minimal and self-funded from Reichdrill cash flow.
- Reduction of manufacturing cost base with Hughes assisted renegotiation of key supply arrangements.
- A summary of the Reichdrill business is provided at the end of this announcement.

The Lind Partners: Media sponsor of "Stars in 2013" Industrial Forum

Fri, 24 May 2013 00:06:30 +0800

The New York-based asset management firm 'The Lind Partners' is Media Sponsor of Proactive Investors' "Stars in 2013" Investor Forum to be held in Sydney on Tuesday 4th June 2013. Attendance is free but registrations are essential as seats are limited.

The Lind is a New York-based asset management firm that manages a family of institutional investment funds focused on small- and mid-cap publicly traded companies with an emphasis on Australia, Canada and the United Kingdom.

Jeff Easton is the founder and managing director of The Lind Partners, and has spent over 15 years in the funds management business, and in 2009 co-founded SpringTree Global Investors, a New York-based institutional investment firm.

PRESENTING COMPANIES

TZ Limited (ASX:TZL)

Chairman Mark Bouris' TZ Limited (ASX: TZL) leverages its Intellectual Property and technology and over 180 patent applications in process, the distributed intelligence of TZ SMArt Devices™ and SMArt Systems™ provide solutions including the Automated Delivery Asset Manager (ADAM) locker system for online shoppers.

Novogen (ASX:NRT)

Novogen (ASX: NRT) has set itself the lofty goal of conquering cancer by developing the CS-6 comprehensive cancer therapy. A bold endeavor that Novogen is passionate about, committed to, and focused on. See why Novogen believes it can succeed where so many others have not fared well.

Cellmid (ASX:CDY)

Cellmid (ASX: CDY) is focused on developing innovative new therapies and diagnostic tests for heart attack, inflammatory diseases and cancer. Cellmid set up a dedicated subsidiary, Advangen International Pty Ltd, for the development of midkine for hair growth. In May, Cellmid made a transformative acquisition of Advangen Inc., Japan, the company that owns the FGF-5 inhibitor hair growth technology.

E&A Limited (ASX:EAL)

E&A Limited (ASX: EAL) is a dividend-paying company based in South Australia and operates nine wholly owned operating businesses providing services across the financial services, mining, defence, water, wind power and heavy industry sectors.

Bluechiip Limited (ASX: BCT)

Bluechiip Limited (ASX: BCT) is global technology company that provides a unique chain‐of‐custody tracking and monitoring tool which is initially focused on the life science market. Biobanking is the company's first market, where there is a broad and rapidly growing demand.

Red Mountain Mining uncovers new 1km gold corridor at Lobo Prospect in Philippines

Thu, 23 May 2013 22:23:00 +0800

Red Mountain Mining (ASX: RMX) has uncovered further high grade gold with peak results of 6.63 grams per tonne gold and 67.4g/t silver from surface sampling at Lobo prospect within its flagship Batangas Gold Project in the Philippines.

This along with new soil sampling geochemistry have allowed the company to define a greater than 1 kilometre long corridor of mineralisation at the southwestern end of the 2 kilometre long Ulupong structure.

“The Ulupong discovery is starting to look very significant. High-grade gold, in outcropping veins, is supported by strong soil anomalies over a one kilometre strike length,” managing director Jon Dugdale said.

“We are excited at the prospect of drilling this new discovery, along with the other high grade, near surface targets at Pica and Japanese Tunnels.”

The sampling was carried out over sub-cropping quartz-sulphide boulders in the Bigaan-Ulupong area about 800 metres along strike to the northeast of the ULOC 4 trench where a recent result of 1.4 metres at 1.26 g/t gold including 0.3 metres at 5.3 g/t gold was produced across northern extensions of the ULOC 4 vein.

Previous sampling across the vein at ULOC 4 intersected 0.45 metres at 23.39 g/t gold while sampling along the vein produced results of 19 metres at 9.77 g/t gold including 7 metres at 23.58 g/t gold.

Drilling is now planned to test the high-grade veins and soil anomalies at Ulupong as part of the next phase of drilling, which is expected to be funded by the Rights Issue of three new shares priced at $0.01 each for every two shares held by shareholders to raise up to $2.8 million.

This is partially and conditionally underwritten by Patersons Securities to $550,000.

Batangas

Batangas, located 120 kilometres south of Manila, comprises two key gold prospects, Archangel and Lobo, which have combined JORC Mineral Resources estimates of 5.78 million tonnes at 2.2 grams per tonne gold and 3.3g/t silver for 408,000 ounces of gold and 606,000 ounces of silver.

The bulk of resources are currently located at Archangel where surface stockwork gold mineralisation hosted by shallow dipping andesitic volcanics remains open to the east and west

Red Mountain has recently discovered four new, high-grade, near surface, epithermal gold vein zones at Lobo, Batangas, that will be the focus of further drilling with the objective of upgrading gold Mineral Resources and significantly enhancing the economics of a potential gold operation at the project.

Recent diamond drilling at Lobo had returned assays of 5 metres at 4.28g/t gold and 15.75g/t silver from 22.4 metres, including 1.3 metres at 9.49g/t gold and 21.5g/t silver, and 1.7 metres at 4.4g/t gold from 58.1 metres.

Modun Resources sees significant upgrade in Nuurst coal quality in Mongolia

Thu, 23 May 2013 22:19:00 +0800

Modun Resources (ASX: MOU) has found that coal briquettes created from coal from its Nuurst coal in Mongolia could be upgraded to the benchmark Newcastle thermal coal energy level.

The testwork saw an increase in calorific value achieved to 5,648 kcal/kg from a 4,178 kcal/kg for the raw coal sample.

The improvements in coal quality were achieved via a cost effective beneficiation process, the improvements ensure a far more efficient burning coal.

Mongolian government

Modun is also in discussions with the Mongolian Government to develop a low cost, high energy and low emission coal to help improve the air quality in Ulaanbaatar.

Modun has also had several discussions with the Mineral Resources Authority of Mongolia over the last few weeks as part of the approval process for the mining licence which Modun expects to receive afer the completion of the administrative process.

The Nuurst thermal coal Project is located in central Mongolia on a 34.5 square kilometre licence area. In November 2012, Modun announced a 478 million tonne JORC reported Coal Resource at Nuurst. It is located 120 kilometres south of Mongolia's capital Ulaanbaatar and just six kilometres from existing rail infrastructure which links directly into China.

Peak Resources produces refined rare earth products from Ngualla mineralisation

Wed, 22 May 2013 21:45:44 +0800

Peak Resources (ASX: PEK, OTCQX: PKRLY) has achieved a significant milestone on the road to commercialising the wholly-owned Ngualla Rare Earth Project in Tanzania, following the production of two refined rare earth products.

Peak Resources is on track to become the next major rare earth supplier from the Ngualla project in Tanzania. The company has produced two refined rare earth products at ANSTO Minerals - which importantly are in saleable form and available for evaluation by target customers.

Ngualla is on track to become the next major rare earth supplier with high grade mineralisation and a simple, proven metallurgical process supporting a low cost operation.

These products were produced at ANSTO Minerals (Australian Nuclear Science and Technology Organisation), and importantly are in a saleable form and available for evaluation by target customers.

The rare earth products completed to date are:

- An ultra-high purity (99.9%)* mid and heavy rare earth oxide (M+HREO).
- A high purity (>99%) rare earth carbonate with a grade of 56% REO.

The work includes the first of four separated high purity rare earth oxide products from the Solvent Extraction (SX) Pilot Plant now in operation at ANSTO.

Peak said that the SX Pilot Plant work is progressing well with three additional separated rare earth oxide samples to be produced over the coming months, including a high purity didymium oxide (a neodymium – praseodymium mix) sample which is expected in June, followed by cerium oxide and finally a lanthanum oxide.

Alastair Hunter, chairman for Peak, commented: “The successful production of these products of such high quality is an achievement very few other companies have made and we are hopeful they will exceed the expectations of any future off take customers.

"This work is well within the required specifications and demonstrates Peak’s commitment to drive the development of the Ngualla Project forward.”

Ngualla is a leading rare earth project with an estimated NPV of US$1.57 billion and pre-tax IRR of 53% for an initial 25 years production and an average grade of 4.35% REO.

Peak continues to fast track the development of Ngualla with the aim of becoming a low cost, long term producer of high purity rare earth oxide products in 2016.

MZI Resources making "significant progress" on debt funding for Keysbrook mineral sands project

Wed, 22 May 2013 16:54:33 +0800

MZI Resources (ASX: MZI) has revealed it is making "significant progress" towards completion of the debt funding arrangements for its Keysbrook mineral sands project in Western Australia.

This ensures MZI remains on track to secure credit approved offers from its two mandated Joint Lead Arranging banks.

The banks have requested additional information on offtake contracts struck for Keysbrook as well as construction arrangements.

With this, MZI said it is confident that it will complete these matters to the satisfaction of the JLAs and receive binding offers of debt finance.

More favourable terms and low OPEX

The slow down in construction activity in WA’s resources sector has been a blessing as MZI is likely to achieve more favourable terms for Keysbrook, including the possibility of striking a fixed-price, lump-sum turn-key contract for the development of Keysbrook.

This would provide greater certainty in respect to development costs and schedules and more desirable security arrangements.

Importantly, the current market conditions could also reduce forecast operating costs for Keysbrook, it will conduct a formal tender process for an alternative Keysbrook contract mining strategy.

A Port Services Agreement with the Bunbury Port Authority and other project related commercial contracts are also being finalised.

ASF Group forms strategic partnership with China Real Estate Association

Wed, 22 May 2013 16:52:00 +0800

ASF Group (ASX: AFA) has entered into a strategic partnership agreement with China Real Estate Association, strengthening its goal of promoting investment and trade between Australia and China.

CREA is a peak association authorized by the Ministry of Construction of China based in Beijing.

Under the partnership, ASF will become the sole strategic partner of CREA in Australia and will assist the non-profit in arranging for Chinese entities to invest in Australian real estate developments.

In return, CREA will promote ASF’s projects on its website and in events organised or sponsored by CREA.

It will also arrange for potential investors to visit ASF and to explore the possibility of investing in its Australian projects.

“The company is very pleased to become the sole strategic partner of CREA in Australia and believes that the strategic partnership will enhance the position of the company in promoting investment and trade between Australia and China in particular in the property sector,” ASF chairman Min Yang said.

China Real Estate Association

CREA is a China-wide non-profit professional organisation with 2,100 members that was established in Beijing in 1985 with authorisation by China’s Ministry of construction.

Members include businesses and institutions engaged in real estate development and operations, market transactions, brokerage, construction and property management; as well as local real estate associations and relevant individuals.

The association has a large network and significant influence in the Chinese real estate sector, submitting research reports and suggestions concerning real estate development, technical requirement policy, law and regulations to China’s Government.

ASF Group

ASF Group focuses on investments where there are synergies between Australia and China.

While this has primarily being in the resources sector, the company was in March shortlisted by the Queensland Government and Gold Coast City Council for the development of a new cruise ship terminal and casino at Broadwater on the Gold Coast of Queensland.

The world-class project could include a cruise ship terminal on State Government-owned land on The Spit or on Wave Break Island in the Broadwater, marina and super yacht facilities, retail entertainment, hospitality, community open space, recreation facilities and a mix of residential development.

ASF China Property Consortium, which includes China Communications Construction Company, Guangzhou Dredging co Ltd and China State Construction Engineering Corporation Limited (CSCEC), is one of four consortia that were shortlisted.

It is expected that a detailed proposal will be lodged by mid 2013.

TZ Limited signs Fastway Couriers to A.D.A.M. Parcel Locker System

Wed, 22 May 2013 00:59:13 +0800

TZ Limited (ASX:TZL) has signed Fastway Couriers to its team developing a parcel distribution and on-line logistics network for purchases by on-line shoppers.

Australian Couriers Pty Limited trading as Fastway Couriers is a 20 year old Australian business with a national network of over 700 courier franchisees across 25 regional franchises across Australia. Last year, Fastway delivered over 20 million parcels in Australia.

The agreement with TZ sets out a 12 month trial for the parties to work together to exploit TZ's A.D.A.M. Parcel Locker System.

The Fastway deal, coupled with those previously announced with Toll Group and Temando, means that TZL now has teaming agreements in place with service providers which based on TZ’s estimates, could represent in excess of 60% of the parcel deliveries in Australia.

As part of the trial, Fastway will utilise the Parcel Locker Network for on-line parcel deliveries and other service offerings under agreed commercial terms.

Subject to the success of the program and mutual satisfaction, Fastway and TZ will look to cement an agreement.

In recent months, TZ chairman Mark Bouris and executive director Ken Tang have rung in major breakthroughs including:

- Commercial relationships that establish access for TZ Parcel Locker infrastructure across multiple locations around Australia (collectively these property partners have access to several hundred sites);

Analysis

Although unofficial metrics, today's agreement and partnerships struck to date for TZ could account for as much as 60% of the parcel deliveries in Australia.

TZ's current market valuation of $21 million for the group is against the intrinsic value inherent in the A.D.A.M. business as well as March quarter revenues of $6.3 million for TZ (annualised rate of $25.2 million).

For the March quarter, revenues were 34.6% higher year-on-year on last year’s numbers due to a much improved performance from Product Development Inc. (PDT) division.

Demonstrating the intrinsic value in TZ, it recently received an unsolicited offer to acquire the PDT division. The board said it is considering the offer.

Based on the foregoing, Proactive Investors estimates the intrinsic market valuation of the group as between $40 million to $50 million.

Mutiny Gold uses SAM Survey to double strike length of Deflector gold project

Tue, 21 May 2013 17:09:00 +0800

Mutiny Gold (ASX: MYG) has availed the Sub-Audio Magnetics, or SAM technology survey to effectively double the "footprint" of the Deflector Corridor, within the 100% owned Gullewa Project in the Mid-West Region of Western Australia.

Southern Geoscience used SAM to find favourable structural settings for Deflector where ‘clones’ of Deflector have been identified near the Gearless Well Intrusive - supported by historical drilling results.

The SAM Survey results more than double the strike length of the mineralised host structure, where data indicates a strike length of some 2,350 metres, which remains open to the north and south.

Previously, the strike of the Deflector resource had been identified as being 950 metres in length.

However, interpretation of new SAM data has confirmed the existing resource signature, and indicates the mineralised host-structures continue at least 450m north and 950m south to a combined strike length of over 2,350m.

Mutiny Gold managing director, John Greeve, said: “The success of the use of SAM technology at Deflector supports our belief in the prospectivity of the Deflector Corridor, which suggests it may become one of the most significant gold discoveries in Western Australia in recent years.

“The Company’s exploration strategy has successfully delivered targets, aligning with Mutiny Gold’s ‘smart targeting’ approach and unlocking the exploration potential of the Gullewa Project.

Greeve said, "Mutiny has always suggested that its previous success in proving up a highly valuable, high grade, low cost gold-copper project at Deflector was just the start of something big and this new work is validating that confidence.”

Upside

There could be significant upside to the current resource inventory and exploration target estimate as well as the discovery is limited by the SAM survey extents, with over 3,000 metres of prospective stratigraphy remaining open to the north and south.

SGC mapped the weathering profile under cover, along with developing a detailed structural framework based on existing high-resolution magnetics data.

The current exploration target range of Deflector 9 to 14 million tonnes at 4 to 8 g/t gold for 1.65 to 3 million ounces of gold and 40,000 to 80,000 tonnes of copper from future drilling programs.

These significant discoveries were confirmed by technology to successfully map the weathering profile under cover, along with developing a detailed structural framework based on existing high-resolution magnetics data.

Deflector Corridor structure

Using Mutiny’s existing high-resolution airborne magnetics data, SGC has completed a regional structural framework study over the northern Gullewa area, together with a detailed litho-structural interpretation over the Deflector project, which covers the Deflector Corridor and the Gearless Well Intrusive.

A major east-west trending thrust fault has been interpreted, which runs from the west, immediately north of the Deflector deposit and along the northern margin of the Gearless Well intrusion terminating at the Salt River fault.

The presence of a major structure here has significant implications for the prospectivity of extensions to the Deflector mineralisation.

Given the value-add of the structural interpretation to Mutiny Gold’s exploration strategy, Southern Geoscience has been commissioned to extend coverage over the entire Gullewa project.

SAM Survey results

The Sub-Audio Magnetics survey was conducted over Deflector, extending coverage over the Davy Jones, Spanish Galleon and Mary Celeste prospects.

The survey aimed to map the weathering profile under thick cover, highlighting deeper zones of weathering associated with structural-related zones of mineralisation which contrast strongly with the basalt host-rock.

The SAM data cannot give precise information to the depth of mineralisation, but rather indicates a potential target which is otherwise blind.

The SAM method has proven successful for discovering blind gold deposits in conductive environments in the Goldfields, such as the Songvang Gold Mine near Agnew which like Deflector, was hosted in basalt and had no surface geochemical signature because of thick transported overburden.

The northern extension continues approximately 450 metres into the Davy Jones prospect, and is also supported by RC intersections from the 2012 campaign; including: 1 metre at 13g/t from 51 metres and 1 metres at 8.9g/t from 43 metres.

Interpretation work by SGC continues on other potential targets identified within the SAM survey area. Completion is scheduled for late May, however, Mutiny has immediately proceeded with detailed drill designs.

Analysis

In a tough macro period for gold companies, the more than doubling in size of the Deflector corridor and strike length is a welcome development and provides a signal as to just how large the Gullewa project could become.

Identifying ‘clones’ of Deflector near the Gearless Well Intrusive using SAM - supported by historical drilling results may render the current resource and exploration targets completely obsolete. This would also positively impact project economics and projected returns for Deflector.

Mutiny should gain a "kick" from these results and a tantalising "beacon" as to what could be at Deflector.

Kaboko Mining completes key scoping study at Zambian manganese project

Tue, 21 May 2013 17:07:59 +0800

Kaboko Mining (ASX: KAB) has completed a Scoping Study confirming that the budgeted costs for production and logistics at its Mansa manganese project in Zambia, are in line with its expectations.

Independent consultant Mincon had estimated the cost of delivering a CIF product at between $190 and $210 per tonne.

Manganese prices were averaging about US$2,300 per tonne on 14 May.

Given the recent lift in manganese prices and high grade nature of the project, this is a timely positive for the company as it prepares to begin production over the coming weeks.

The Scoping Study also included an indicative manganese resource estimate and mine plan for operations based on a seven year mine life.

This is critical to the operating program and pit design, enabling Kaboko to maximise efficiency and productivity at the Mansa Project. It also allows the company to start operations.

Follow-up activity

The Scoping Study provides Kaboko with the foundation for a JORC Resource at the Mansa Project.

This will be completed following a further 24 hole drilling program totalling 1,200 metres this quarter that targets extension of the existing mineralisation zone.

Kaboko noted this is designed to confirm the Indicative Resource as well as increasing the potential resource.

It noted that the Scoping Study focused on the known mineralisation area, which represents just 2% of the 90 square kilometre area that the Mansa Project covers.

This offers the project significant upside that the company intends to continue defining through exploration while continuing operational activities currently underway to achieve first production in the current quarter.

Production plans

Kaboko had continued mine development and associated plant and equipment purchases, including the semi-mobile modular processing plant which will be used to crush and process the ore at the Mansa Project, during the March and current quarters.

The processing plant is scheduled to arrive and be installed by the end of the current quarter while development works have included clearing of overburden, completing construction of infrastructure and installation.

Following initial crushing onsite, ore from the Mansa Project will be trucked to the rail siding for further crushing and processing before being sent to port via rail.

Initial production is targeted at 5,000 tonnes per month before it is ramped up to 10,000 tonnes per month.

Analysis

The completion of the Scoping Study is timely as Kaboko Mining progresses towards the start of trial mining in the current quarter.

Besides estimating the cost of delivering a CIF product at between $190 and $210 per tonne, the Study has also set an Indicative Resource that will form the basis for the company’s upcoming JORC Resource following further exploration.

Having recently secured a US$4 million advance by the Noble Group under the US$10m Secured Prepayment Debt Facility and a Manganese Ore Off-take Agreement it is all systems go for Kaboko. Its current market cap. of just $5 million not only looks undemanding but set to rise with the onset of production.

Mindax targets increase in iron base at Mt Forrest project

Mon, 20 May 2013 23:38:40 +0800

Mindax (ASX:MDX) has started the second phase drilling at its flagship Mt Forrest Iron project in Western Australia, in a move to increase both the mining output and project life by increasing the iron inventory.

Mindax's Mt Forrest project is going through feasibility with a view to mining at the end of 2014.

The second phase of the field program envisions 4,000 metres of drilling and drilling contractors Westdrill has mobilised to site.

The current work will involve definition of the three detrital areas identified in phase one drilling earlier this January; testing for the presence of more detrital iron mineralisation from surface gravity survey done this March; and a small drill program targeting the regolith iron mineralisation.

The work is part of the company's effort to optimise the previously completed direct shipping ore regolith scoping study.

With the new program underway, Mindax is looking to increase both the project life and output by increasing the resource base.

Mindax's managing director and chief executive officer, Steve Ward said,“Mt Forrest is our flagship project and has considerable potential. We are pleased to be able to begin our second phase of drilling for 2013. This is a key component of our work program as we drive the project forward”.

The drilling is expected to be completed in four weeks.

Previous drilling

Mindax had completed the first phase of scout reverse circulation drilling in January 2013, which identified three new detrital iron areas that host a continuous bed of iron mineralisation.

Analysis

With the second phase of drilling already underway, Mindax is on the path to potentially expand its resource base as well as extend the mine life at the Mt Forrest project, which currently has a resource of 1.7 billion tonnes at 31.8% iron.

The drilling also bolsters its proposed partnership with Hong Kong-based Perpetual Mining that could see the latter acquiring up to a 51% interest in the project's direct shipping ore rights and up to 49% in the project's magnetite rights in return for spending up to $52 million to speed up the development of the Mindax's flagship project.

China provides hope to Australian coal miners, threatened embargo on low-CV thermal coal

Mon, 20 May 2013 15:43:12 +0800

China's National Energy Administration is framing a policy to curb import of low grade thermal and coking coal by imposition of import ban to address the problem of poor air quality in Chinese cities due to high emission levels from power plants.

Unconfirmed reports say that thermal coal with low calorific value less than 4,500kcal/kg, ash content of more than 25% and a sulphur content of more than 1% will be banned.

China's proposal has the potential to displace all its lignite [imports] and more than 50% of its Indonesian thermal coal imports, around 100 million million tonnes.

Winners, if implemented, would be Australian coal suppliers of high ash Australian 5,500 kcal/kg NAR thermal coal, as Chinese importers would likely buy more of this product and wash down its maximum 23% ash content to blend with domestic thermal coal.

Of rourse, the ban could also affect Australian coal companies with projects in Indonesia as well that fall under the net.

The reports also point out possible ban on coking coal import with more than 12% ash content, 1.75% sulphur and more than 12% total moisture

However, the timeline for implementation is not clear as NEA is reported to be seeking inputs from stake holders in industry. The timing of the potential embargo's introduction has not been disclosed to Chinese market participants.

NEA is also proposing to tighten coal import procedures by setting criteria for Chinese coal importers:

1. Registered capital of more than CNY 50 million
2. Imported more than 1 million tonne coal in past years
3. Must have adequate stockyards

However, market participants are skeptical about implementation of this policy.

If implemented, while Chinese power plants running on low calorific thermal coal would be hit hard, Indonesia would be the biggest looser with almost 100 million tonnes of at stake. The limit on sulphur would also effect US coal miners.

Domestic thermal coal producers in China have reportedly voiced their support for the proposed block on imported lower calorific value thermal coal, as this grade competes aggressively with a large proportion of their output which is between 4,500-5,500 kcal/kg NAR

IPB Petroleum extends Browse Basin acreage

Mon, 20 May 2013 15:41:30 +0800

IPB Petroleum (ASX: IPB) has been awarded a third Browse Basin petroleum exploration permit that is believed to host an extension of an oil play identified in one of its existing permits.

WA-485-P (IPB 100%) lies immediately north of WA-424-P (IPB 75%) and immediately east of WA-417-P (IPB 100%), bringing its total position up to 14,000 square kilometres.

Analysis and interpretation of existing available 2D seismic data has led the company to conclude the WA-485-P contains a substantial continuation of the M.australis horizon oil play identified in WA-424-P.

This is estimated to host 322 million barrels of mean prospective recoverable oil resource in WA-424-P alone and will be tested by the upcoming Pryderi-1 exploration well that is expected to spud in mid-July.

A success at Pryderi will add to the prospectivity and value of WA-485-P as well as WA-471-P.

“The granting of WA-485-P is an important next milestone in the continuing development of IPB Petroleum,” managing director Brendan Brown said.

“Our company is excited about the oil potential of the near shore margin of the Browse Basin and we're on track to begin drilling the planned Pryderi-1 well in the 3rd quarter in our neighbouring WA-424-P permit.”

The company has commenced a more detailed resource estimation for WA-485-P and expects that it will be able to provide this information to the market on or before mid-June 2013.

WA-485-P

IPB noted that water depths in WA-485-P are relatively shallow at about 100 metres.

This together with the shallow interpreted reservoir depths of about 700 metres has allowed the company to bid two exploration wells as part of the permit work program for the equivalent cost of less than one exploration well in deeper parts of the Browse Basin.

Besides the two wells in third year of the first primary three year term, the company has also committed to carrying out:

-    Year One: $250,000 worth of geophysical and geological studies;
-    Year Two: 610 square kilometres of 3D seismic worth $7.5 million and another $250,000 of studies; and
-    A further $250,000 worth of geophysical and geological studies after drilling the wells, which are estimated to cost about $24 million.

IPB has also penned in a $19.75 million work program for the second three year term though this can be entered into at the company’s option at the end of the first term.

Pryderi

The well in WA-424-P is expected to spud by mid-July, targeting a high-amplitude seismic response similar to that seen at the non-commercial Gwydion-1 oil discovery that was made by BHP Billiton (ASX: BHP) in 1995.

ISIS Petroleum Consultants estimates that there is a 75% chance of a hydrocarbon discovery at the Pryderi prospect.

Quantitative seismic interpretation work on the 3D seismic concluded that in the event of a discovery, there is a 60% probability that the hydrocarbon phase would be oil, giving an overall 45% chance of an oil discovery with a mean recoverable prospective resource of 40 million barrels.

Notably for IPB, the well is fully funded by farm-in partner CalEnergy, a fully-owned subsidiary of Berkshire Hathaway’s MidAmerican Energy Holdings Company.

IPB’s permits are located in one of the most prospective oil and gas basins in Australia. The last two years have seen in excess of A$40 billion of gas condensate development projects reaching final investment decision approval in the Browse Basin.

Notable fields located nearby are the Prelude gas field (2 trillion to 3 trillion cubic feet), where Shell (LON:RDSA) is developing the world’s first floating liquefied natural gas project, and Inpex Corporation’s giant Ichthys gas field (12.8Tcf) that will feed its 8.4 million tonne per annum LNG facility in Darwin.

The permits are also close to the undeveloped Cornea oil field.

Analysis

With the expected spud date for the Pryderi WA-424-P well in July, interest will return to IPB given the farm-in partner CalEnergy's pedigree as well as the risked probability of finding oil.

Highfield Resources banks $5.1M from EMR Capital for potash projects

Fri, 17 May 2013 22:40:43 +0800

Highfield Resources (ASX:HFR) has followed its impressive share price rise and progress toward developing its potash projects located in Northern Spain, receiving a first tranche of $5,126,688 from a recent placement.

The $5.1 million received is part of a planned $10 million investment by Owen Hegarty's EMR Capital in Highfield Resources to develop its advanced potash projects in Spain.
EMR Capital will be allotted 23,755,626 ordinary shares at $0.30 per share.

Owen Hegarty's EMR Capital private equity group agreed to invest $10 million to become a cornerstone investor via a placement in April.

An additional allotment of 16,244,374 ordinary shares at 30c raising $4,873,312 is subject to shareholder approval.

These funds will enable the company to progress Feasibility Studies on two of Highfield Resources Spanish potash projects.

The present targets are the advanced Sierra del Perdon and Javier potash projects.

Appointment of director

Richard Crookes has been appointed to the Board as EMR Capital’s nominated director. Crookes has over 25 years’ experience in the resources and investments industry.

Background on projects

Execution of the company’s development programme will see the delivery of significant milestones this calendar year which will continue to reinforce Highfield’s near term potash mine development and production prospects.

Highfield’s Javier, Pintano and Sierra del Perdon potash projects are located in the Ebro potash producing basin in Northern Spain.

The Sierra del Perdon project includes two former operating mines. Highfield’s objective is to quickly recommence production from these mines.

The Javier and Pintano potash projects are located in two separate sub basins within 60 kilometres of the former operating mine. Highfield owns a 100% interest in the five granted tenements with three applications pending that comprise the three projects and cover over 400 km2.

Analysis

On April 17, with the Highfield share price at $0.17, Proactive Investors wrote "the placement to EMR Capital represents an inflexion point in the company’s evolution, providing catalysts and milestones for value accretion and should see growth in the company's valuation in the medium term.

"We estimate the market valuation and share price of Highfield Resources in the $0.40-$0.50 range in the next 12 months."

Clean TeQ Holdings bags $1.8M investment from Robert Friedland

Fri, 17 May 2013 21:12:00 +0800

Clean TeQ Holdings (ASX: CLQ) has snagged a convertible note investment of $1.84 million from mining identity Robert Friedland which would give him a 11.35% interest in the company.

Friedland will acquire 18,406,116 by way of unsecured convertible notes.

There is also a provision for Friedland to subscribe for a further 17,317,866 unsecured convertible notes which, if also fully converted to ordinary shares, would take his interest in Clean TeQ to 19.9%.

The total subscription price for those further notes will be approximately $1.73 million.

Clean TeQ was founded in 1990, with expertise in separation and purification technologies for water treatment and metals recovery.

Clean TeQ will also appoint up to two nominees of Mr Friedland to the Clean TeQ Board.

The initial investment by Friedland in the company does not require any shareholder or other approvals and will be completed immediately.

The investment is subject to completion of due diligence on Clean TeQ and approval by Clean TeQ shareholders at a General Meeting,

Terms

The convertible notes will have a term of three years pay a 10.0% p.a. coupon and may be converted on a one-for-one basis at any time before their maturity date.

Clean TeQ said it recently "has been challenged financially as a result of timing issues relating to license fees and its bank overdraft facilities."

Clean TeQ said the investment by Friedland is a timely boost to the Company's working capital and provides a solid base from which to secure the financial future of the business.

It said it is aiming for the release of the $3.5 million in license fees (net of research and development cost reimbursements paid to Clean TeQ) to the company by Clean World Japan Limited (the corporate entity undertaking the Company's joint venture business in Japan with Nippon Gas).

ASF Group increases stake in ActivEX to 23.08%

Fri, 17 May 2013 21:10:41 +0800

ASF Group (ASX:AFA) has taken its shareholding in copper-gold explorer ActivEX (ASX:AVI) to 23.08% on Thursday from 20.95% on Tuesday.

A total of 5,202,712 shares have been tendered to broker Taylor Collison, which is acting for ASF, bringing its total holding to 56,504201.

ASF had on 13 May 2013 made an unconditional on-market takeover offer of $0.015 per ActivEX share.

This offer extends to the shares to be issued under ActivEX's Rights Issue.

Australian gold companies likely to attract more investment from China

Thu, 16 May 2013 22:49:40 +0800

Yesterday's announcement by Aphrodite Gold (ASX:AQQ) that it had received approaches from major mining and investment companies, from mainland China, Hong Kong and Singapore demonstrates a growing trend that should benefit investors.

The recent fall in the gold price looks to have ignited interest from Asian gold producers and companies looking to pick up assets at a lower entry prices in ASX listed gold companies than were generally prevailing over the past 18 months.

While early stage gold explorers may find interest, the focus is likely to centre on listed gold companies past feasibility study stage, into pre-production or gold production.

Recent examples support the premise including Norton Gold Fields (ASX:NGF), 89 per cent owned by Zijin Mining Group Co evaluating acquiring gold assets in Australia.

This follows Norton's earlier offer to acquire Kalgoorlie Mining Co. (ASX:KMC) for $14.9 million in April.

Qixing Group Company Ltd.'s Shenzhen-listed subsidiary Shandong Qixing Iron Co.(002359.SZ) offered US$140 million to acquire the assets of ASX listed Stonewall Resources (ASX:SWJ).

Hong Kong-listed iron ore miner China Hanking Holdings Ltd. (3788.HK) agreed to acquire St. Barbara's (ASX:SBM) Southern Cross mining operations for $22.5 million in January.

A rush for gold bullion and jewellery surged in mainland China and Hong Kong as consumers sought to take advantage of lower gold prices.

The interest in Australian gold assets and projects owned by ASX listed companies should have investors running a ruler through gold companies.

Brockman Mining submits proposal to Fortescue Metals for access to rail in Pilbara

Thu, 16 May 2013 16:50:00 +0800

Brockman Mining (ASX:BCK) is attempting to gain access to the "below rail" infrastructure in the Pilbara owned by Fortescue Metals Group (ASX: FMG).

The stakes are high as Brockman is seeking rail access to allow it to haul up to 20 million tonnes of hematite iron ore product per annum from Marillana, for a term of 20 years.

Other options are also being evaluated by Brockman focused on securing an infrastructure solution that enables it to commercialise its Marillana Project.

The access proposal, made under section 8 of the Western Australia Railways (Access) Code, would see Brockman seek acccess to Fortescue's TPI’s railway infrastructure from approximately the 219 km point on the TPI mainline.

At this point Brockman would then construct a rail spur to its Marillana Iron Ore Project, to approximately the 23 km point on the TPI mainline near Port Hedland, where Brockman would construct a rail spur to connect with the proposed North West Infrastructure facilities in Port Hedland.

An analysis of the TPI railway infrastructure and Fortescue’s operations conducted by Indec Consulting concludes that there will be sufficient capacity available for the Access Rights to be provided by TPI, which would complement its existing railway operations.

Brockman does not seek access to TPI’s above-rail services, as haulage services would be provided by an experienced haulage operator.

Recent statements by Fortescue provide some encouragement for Brockman which advocated its support and provision of third party access on its TPI rail system on a commercial basis.

Lamboo Resources ups the ante with further high graphite find in South Korea

Thu, 16 May 2013 16:43:00 +0800

Lamboo Resources (ASX:LMB) has encountered high grade surface rock chip sample assays of up to 27.10% graphitic carbon (Cg) from the Taehwa Flake Graphite Project in South Korea.

Rock chip sampling was undertaken to check and confirm the tenor of previously identified graphite mineralization.

A total of 16 rock samples were submitted to Activation Laboratories Ltd in Canada, for assay. Eight samples were also submitted for petrographic and SEM (scanning electron microscope) analysis.

Other significant rock chip assays recorded from the graphitic gneiss unit at the Taehwa graphite project included 20.10% Cg, 7.32% Cg, 5.47% Cg and 3.60% Cg.

The high grade nature of the assays has upped the prospectivity and stakes of the Taehwa flake graphite project. In South Korea, Lamboo's main deposits are Geumam, Taehwa & Samcheok.

The Taehwa flake graphite deposit is situated just 80 kilometres east-northeast of Seoul in the northern part of South Korea, about 10 kilometres southeast of Chuncheon City.

South Korea - graphite growth potential
South Korea was the largest global producer of graphite during the 1950-1992 producing about 77,000tpa of flake and amorphous graphite annually.

A well-developed downstream graphite processing industry exists in South Korea. Demand for graphite is expected to grow in North Asia at a higher rate than any other region over the next 5 years.

There is an opportunity to substitute flake graphite into some synthetic graphite markets because of its cost competitiveness. South Korea is the world’s second largest importer of synthetic graphite, estimated to be 52,000t in 2011 and growing at a rate of 27% pa.

A proposed drilling program will attempt to extend the existing resources.

Lamboo Resources managing director, Richard Trevillion and technical director Craig Rugless would be highly encouraged by the results to date at Taehwa, where there is an Exploration Target at Taehwa of 1-3Mt at 5-10% Cg for a potential 105,000-210,000 contained tonnes of medium-jumbo flake graphite.

Graphite flakes observed at Taehwa ranged in size from 200-1500μm, averaging 800μm in length, classifying Taehwa as a jumbo flake deposit.

The location of the Taehwa deposit is in a sparsely populated mountainous region and is in an ideal location for a mining development. The near surface, flat-lying nature of graphite mineralization is conducive to open pit mining methods.

Analysis

Lamboo Resources has returned results that are once again significant in the context of developing a flake graphite project into production on the doorstep of the world’s fastest growing end market - South Korea.

Lamboo has only been re-listed on the ASX with a graphite exploration and development model for less than 12 months. Yet, the results from South Korea and its Australian Mcintosh project could realistically see the company into production because of the proximity to a processing facility in 2014/15.

Graphite is ranked a highly critical strategic mineral and is on the Royal Geological Society ‘Risk List.

Lamboo's current market valuation of circa $6.7m considerably undervalues the company on a 12 month view.

Shree Minerals clinches offtake and funding for Nelson Bay River iron ore

Wed, 15 May 2013 23:01:00 +0800

Shree Minerals (ASX: SHH) has entered into an offtake agreement for its Nelson Bay River Iron Ore DSO Project in Tasmania with Singapore based trader Frost Global.

Besides securing offtake for iron ore produced at Nelson Bay River Iron Ore DSO Project, the agreement with Singapore’s Frost Global also provides Shree Minerals with a US$4 million advance to progress development of the project, which has low forecast OPEX of $58 per tonne for DSO product FOB Port Burnie.

Importantly, Frost will provide US$4 million in funding to progress development of the project by way of an advance towards the supply of iron ore.

This will be paid back over the first eight shipments of iron ore, or US$500,000 per shipment.

Gven that Nelson Bay River has low capital expenditure requirements and operating expenditure of about $58 per tonne for DSO product, which is not bettered by many iron ore producers, the funding advance will help progress the project towards production while allowing Shree to maintain a sizeable margin during payback.

The production schedule for the first stage of the project is to develop two relatively shallow open-cut mines to produce direct shipping grade hematite ore, which will require just crushing and sizing.

The second stage involves the continuation of mining of the second open-cut situated above the main magnetite orebody.

The hematite oxide cap consists of the central DSO ore section mined in stage one which is surrounded by lower grade ore considered to have potential to produce a commercial beneficiated oxide product.

Analysis

The offtake and funding agreement with Frost Global provides both certainty of buyer for the DSO iron ore to be produced at the Nelson Bay River project, it also deftly provides funding through a US$4 million advance against production to progress development.

Shree is steadily but surely ensuring each box is ticked on the road to iron production. That the current market cap. of $17 million does not factor in revenues and profits from near term DSO production is to understate the facts.

Elk Petroleum starts water injection at Grieve oil field

Wed, 15 May 2013 22:26:05 +0800

Elk Petroleum (ASX: ELK) and operator Denbury Resources (NYSE: DNR) have reached a milestone at their Grieve Enhanced Oil Recovery Project in Wyoming with the start of water injection to accelerate re-pressurising of the Grieve Muddy oil reservoir.

Water is being sourced from the recently completed Grieve-62 well that was drilled to the deeper Madison formation and pumped into two Grieve wells at an initial total rate of about 7,000 barrels per day.

The pump currently in Grieve-62 is a temporary testing arrangement with a rented generator and will be replaced by a permanent larger capacity pump and permanent power supply next month.

Water injection is supplementing the carbon dioxide, which continues to be injected into four Grieve wells at a total rate of about 40 million standard cubic feet per day.

The injection of water is designed to accelerate re- pressurising of the reservoir to achieve minimum miscible pressure and hence expedite the onset of first oil from the Grieve EOR project.

Denbury has commenced work planning for the installation of the facilities required to separate and process first oil as well as compress and recycle produced CO2.

These facilities are expected to be in place to receive first oil in mid to late 2014.

The Grieve project is fully funded and is expected to produce up to 1,000 barrels of oil per day net within three years, and possibly up to 5,000 barrels of oil per day by five years.

It has estimated proved and probable reserves of 18.6 million barrels of oil in the target Muddy reservoir.

Elk has a 35% interest in Grieve.

Ash Creek

At Elk’s wholly-owned Ash Creek EOR project, the company will install the brine-making tank and its controls as part of the first phase of the chemical flood operation there.

This involves the pre-flush of the pilot study area of the reservoir with a 4% brine solution to ensure the injected surfactant and polymer achieve the most effective sweep and hence, maximum level of oil recovery.

The injection of brine will commence into three injection wells after the facility has been commissioned and the first salt has been delivered to the site.

Brine injection is expected to start before the end of May and continue for approximately 3-4 months before surfactant and polymer injection commence.

Grieve Crude Export Pipeline

Elk is also proceeding with monetisation of the oil export pipeline from the Grieve field.

This includes the:

- Execution of the purchase and sale agreement;
- Execution of one or more transportation agreements;
- Issue of a private placement memorandum;
- Offering Unocal Pipeline Company the opportunity to exercise a prevailing right of first refusal to re-purchase all or part of the pipeline it sold to Elk in 2011; and
- Receipt of funding commitments.

Elk expects the sale process to start this week with execution of a purchase and sale agreement between Elk’s Grieve Pipeline LLC and a newly created entity, Natrona Pipeline LLC.

The rest of transaction process should then proceed over May and June.

Elk intends to retain a 35% interest in the pipeline to match its 35% entitlement to crude oil from the Grieve EOR project.

Analysis

The start of water injection continues Elk’s progress towards achieving first oil from the Grieve EOR project.

Along with the injection of 40MMscfd of CO2, up from the original planned 30MMscfd, this could pave the way for earlier than expected production.

Achieving earlier oil production will increase the projects value to Elk with Ryder Scott previously estimating that its base case NPV could increase to US$103.3 million if first oil occurs six months earlier than expected in mid-late 2014.

Elk had $2.25 million in cash as of 31 March 2013 but is fully funded to first oil for the Grieve EOR Project.

We believe the recent drawback in Elk’s shares to A$0.185, mirroring the dip in ASX energy stocks, presents a buying opportunity into a near-term oil producer.

Aphrodite Gold in negotiations for major funding

Wed, 15 May 2013 22:23:00 +0800

Aphrodite Gold (ASX:AQQ) is in discussions and negotiations to secure funding for the Aphrodite Gold project with interest from major mining and investment companies, from mainland China, Hong Kong and Singapore.

The preferred funding option is to bring in a Joint Venture partner or major equity investor to raise all the funds necessary to get the Aphrodite Gold Project into production by 2015.

The recent fall in the gold price has escalated interest from Asian markets, possibly as a result of a perceived better entry price for funding.

The approaches are over and above some interest received from Australian companies entering into a Joint Venture over the Project.

Appointment of China consultants

Target Engineering Solutions (TES) has been appointed to assist in negotiating agreements.

TES has history in the China/Australia mining industry, trade and services. Managing director Joel Chong will represent Aphrodite as a link negotiator.

Hedging and borrowings via Noah’s Rule

Noah’s Rule is developing fund raising avenues by way of gold income stream sale and bridging finance.

They have recently introduced Aphrodite to several of the world’s major buyers of gold forward, who have all expressed interest in an involvement in the Project.

Noah’s Rule is working to compile the necessary very detailed financial and technical support data.

The strategy is to raise bridging finance to carry the Project development program through to completion of the Definitive Feasibility Study by next year.

Assuming the Study results are positive, the objective is to raise capital expenditure funds required at the production stage from hedging of gold and loans from major financial institutions.

Initial funding is being aimed for after completion of the Pre-Feasibility Study, expected later this year.

Short term funding – Share Purchase Plan closes 21 May 2013

A Share Purchase Plan has been announced to shareholders at at $0.04 per share, with individual shareholders registered at 23 April 2013 entitled to take up to a maximum value of $15,000 (375,000 shares) by the close date of 21 May 2013.

Aphrodite noted these funds go directly to the Company without deduction for brokerage or any commission or fees paid to brokers or agents, and will be used to continue the exploration and development of the Aphrodite Gold Project.

South Boulder Mines为其Colluli钾肥项目签订重要合资协议

Wed, 15 May 2013 17:55:00 +0800

South Boulder Mines（ASX：STB）就其位于厄立特里亚的Colluli钾肥项目与厄立特里亚国家矿业公司（ENAMCO）签署有约束力的协议，这是其发展过程中的一座重要里程碑。

更重要的是，与厄立特里亚国家矿业公司签署的协议明确了South Boulder Mines 的Colluli钾肥项目的开发，其中包括该项目的经济和财务基础，这将有助于推动公司与潜在投资者的谈判。

“与ENAMCO签署的这份协议是一座重要的里程碑，”South Boulder首席执行官保罗•唐纳森表示。

“该协议通过ENAMCO与厄立特里亚政府建立明确的合作伙伴关系，在项目的推进和开发中明确均衡STB和ENAMCO的利益，这将有利于公司与潜在融资和战略投资者的互动。”

此外，该公司已确认可以凭借自身力量开采和装运Colluli的钾盐镁矾资源，这有可能进一步提高项目的财务收入。

协议主要条款

根据协议，South Boulder和ENAMCO将与厄立特里亚的一个新公司CMSC合并，各自持股50％。South Boulder将在董事会获得三个席位，而ENAMCO获得两个。

CMSC将全权拥有Colluli钾肥项目, 接管与厄立特里亚签订的勘探协议，并负责该项目的勘探、开发和运作。

协议提议项目初期开发成本的70％由CMSC通过商业条款向第三方寻求债务融资，另外30％由South Boulder提供。

如果无法完全依靠外债融资解决70％的开发成本， South Boulder将根据公平交易商业条款为CMSC提供资金。

它也有权收回50％的股权，作为从项目现金流的50%获得的优先偿付，否则这些现金流将被由所有股东分享。

这条约定的影响是，当且仅当代表ENAMCO的STB实际偿付50％股本并且完成还本付息，STB才有权获得免费分派75％现金流的权利。

投产前的开发成本包括资金成本，勘探（包括过去的勘探），融资成本/利息，营运资金和其它所有首次投产所需要的资金。

此外，ENAMCO将提供一份稳定协议，根据该协议它将承担厄立特里亚财政制度变动引发的不利风险，时间从首次投产开始延续10年。

财务影响

如果CMSC能够以伦敦银行同业拆息率+5％的利率，7年的期限获得70%的第三方债务融资，那么按照其所估计的阶段发展模式，South Boulder的内部回报率将从目前的15.1％提高到18.5％（基数为100%）。

这一点验证了其钾盐资源以每年100万吨的生产速率投产并在5年后扩产至每年开采2万吨并加工光卤石资源的潜在经济效益。

该计划预计钾肥离岸价为每吨450美元，且未包含开采及加工钾盐资源的可能性，它在整个Colluli资源里的比重大约为60％。

钾盐可能直接作为化肥出售或进一步加工成传统的钾肥产品，附近的市场，如印度已经有这种情况。

South Boulder目前也在研究如何将混合钾盐镁矾、钾盐和光卤石加工成单一产品。

同时，与产品加工专家合作的过程中得出的范围研究将更好地定义这种潜力，并可能影响开始于2012年4月的最终可行性研究的方向。

Colluli钾肥项目总共拥有10.8亿吨JORC标准资源，其中氯化钾品位为17.97％，或者1.94亿吨氯化钾，其中含有11.35％的氧化钾。

分析

与ENAMCO签署这份有约束力的协议为South Boulder Mines推进Colluli钾肥项目确定了基石。

公司项目回报也有可能提升，从而增加其对投资者的吸引力。

截至2013年3月31日，South Boulder已获得1630万美元现金支持（45%），或每股现金0.127美元。与此相比，其市值为3583万美元，目前股价0.28元。

South Boulder Mines signs milestone JV for Colluli Potash Project

Tue, 14 May 2013 23:17:00 +0800

South Boulder Mines (ASX: STB) has reached a major milestone in the development of its Colluli Potash Project in Eritrea with the signing of a binding term sheet agreement with the Eritrean National Mining Corporation (ENAMCO).

The signing of a binding term sheet agreement with the Eritrean National Mining Corporation provides South Boulder Mines with certainty as to the economic and fiscal basis under which the Colluli Potash Project can be developed, which will assist its talks with potential investors.

Importantly, the agreement provides significant certainty as to the economic and fiscal basis under which the project can be developed, assisting the company in its ongoing discussions with potential strategic investors.

“The signing of a binding term sheet with ENAMCO is a significant milestone for STB,” South Boulder chief executive officer Paul Donaldson said.

“The agreement establishes clear terms for a partnership with the Eritrean Government through ENAMCO, clearly aligns STB and ENAMCO’s interests in moving project forward with project development and provides certainty which will facilitate interaction with potential financiers and strategic investors.”

Separately, the company has confirmed the Kainite resource at Colluli may be mined and shipped in its own right, which has the potential to improve the financial returns from the project.

Term Sheet

Under the agreement, South Boulder and ENAMCO will incorporate a new Eritrean company, CMSC, that they will each hold a 50% stake in. South Boulder will contribute three members to its board while ENAMCO will have two members.

CMSC will own 100% of the Colluli Potash Project, takeover the Exploration Agreement with Eritrea and assume responsibility for the exploration, development and operation of the project.

Analysis

The binding agreement with ENAMCO provides South Boulder Mines with the certainty required to progress development of the Colluli Potash Project.

It also has the potential to improve the company’s returns from the project, making it more attractive to investors.

South Boulder is trading at 45% cash backing with $16.3 million, or $0.127 per share, in cash as of 31 March 2013. This compares with its market capitalisation of $35.83 million and current share price of $0.28.

Genesis Resources finds new gold zone at Plavica in Macedonia

Tue, 14 May 2013 17:41:25 +0800

Genesis Resources (ASX:GES) would take alot of encouragement from a new round of drilling that encountered a new gold zone at the rapidly growing Plavica Prospect in the Republic of Macedonia.

In 2012, saw the JORC resource at Plavica increased as it included copper and silver as credits that lifted the total resource base to 3.66 million ounces of gold at 0.75 grams per tonne gold at a cut off grade of 0.5g/t gold.

The new round of RC drilling focused on a east-west trending zone on the nothern part of Plavica and returned some large gold widths and good grades including:

Best results

- 44m at 2.7 g/t Au from surface
- 54m at 3.9 g/t Au from 25m including 17m at 7.4 g/t Au from 38m and
- 65m at 3.1 g/t Au from 62m Including: 7m at 9.1 g/t Au from 87m

Interestingly, this zone is still open to the east and at depth.

High grade zone

Last quarter, a high grade gold (silver) mineralisation was intersected by Genesis from drilling that included 3m at 26.4 g/t Au, 25.0 g/t Ag, 0.14% Cu, for a Gold Equivalent of 27.12 g/t AuEq.

Dromana Estate has exploration underway at Longonjo Project in Angola

Tue, 14 May 2013 17:40:02 +0800

Dromana Estate (ASX:DMY) is now on the ground in south west Angola where due diligence is being undertaken on the Longonjo Project, which was optioned in March by Dromana to assess some highly prospective copper, gold and rare earths targets.

The Longonjo Project is blessed with strong infrastructure and just 70 kilometres from Huambo international airport, sealed roads and a rail line running through the north of the permit linking the major port of Benguela.

Infrastructure, services, facilities and labour are all well established and available within the district;

Technical due diligence has commenced and independent consulting geologist, Andrew Richards is overseeing with Aurum Exploration Pty Ltd who have been consulting at the Longonjo Project since 2006.

To date, 500 metres of surface trenching and sampling has been completed with a focus on confirmation and possible extension to the high grade mineralisation reported at Adit 2.

The technical due diligence programme also includes around 200 metres of adit sampling, rock chip and channel sampling at the Cassenha Hill Copper/Gold Target and other prospects within the project area.

Non executive chairman Gabriel Chiappini said “we are very pleased we were able to commence exploration immediately on the Longonjo Project as this will enable us to complete our technical due diligence within the option period.

"Although our technical review focuses on the immediate targets at Cassenha Hill, this prospect represents only a small portion of the largely underexplored 3,670km2 licence.

"We are looking forward to providing the market with a further update on our due diligence investigations prior to the option expiration date."

Promising previous exploraton

Historical exploration outlined some very promising high grade copper, gold and rare earth targets including:

Catabola copper/gold prospect: a mineralised structure of 1.6km in length and up to 30m wide with high grade copper intersections from sampling of underground adits, and trenches including adits:

- 84m at 0.81% Cu (including 6.4m at 3.46% Cu and 5m at 1.83% Cu)
- Adit 3: 16m at 0.75% Cu (including 4m at 1.79% Cu)
- Adit 2 cross cuts: 7.5m at 3.46% Cu and 5m at 1.0 % Cu.

Longonjo rare earth prospect: 1.75km by 3.5km outcropping high grade rare earth element prospect in a carbonatite intrusive (average grade 2.43% TREO, median grade 1.71% TREO in a range of 0.10% – 18.9% TREO).

Bongo gold prospect: 10km long shear structure with gold in stream sampling.

Of interest, the Bongo gold prospect would appear to possess similar geological settings to the 5 million ounce Macraes Flat Gold Project in New Zealand.

Forward Work Programme

The exploration due diligence at the Longonjo Project during the three month option period will verify the historical work and results that have been presented.

The extensive database will also be verified for accuracy and checked for completeness. Dromana will initiate due diligence by collating all existing data on the project, and then proceed to a site visit with a confirmatory surface and adit sampling programme at the Catabola copper/gold prospect and Longonjo REE prospect.

The option period commenced upon execution of the binding term sheet, 20 March 2013, and unless exercised prior it shall end either three months from date of execution or 14 days following the receipt of assay results undertaken at the Longonjo Project.

Legend Mining finds gold nuggets at Ngovayang Project in Cameroon

Mon, 13 May 2013 22:21:21 +0800

Legend Mining (ASX:LEG) has found small gold nuggets panned from the creeks from gold exploration at its Ngovayang Project in Cameroon, West Africa.

Legend might be getting closer to the source of the gold from its exploration program at Ngovayang in Cameroon. The area has never been systematically explored for gold using modern methods and the 4km2 target area could be large enough to hold a significant gold deposit.

Offering promise is that Legend might be getting closer to the source of the gold from its exploration program.

Stream sediment sampling and gold panning has suggested a 4km2 target area with extensive alluvial artisanal workings identified within the target area.

Promisingly, the target area has never been systematically explored for gold using modern methods.

Legend’s managing director Mark Wilson said:

“These are exciting developments as the area has never been systematically explored for gold using modern methods and the 4km2 target area is large enough to hold a significant gold deposit.

The shape and nature of some of the small gold nuggets panned from the creeks suggests that we are getting close to the source of the gold.

In addition, a hydrothermal origin for some gold grains, based on silver content, is suggested from scanning electron microscope work by the CSIRO.

Elevated silver compositions suggest a primary hydrothermal origin for those grains and greatly increases the prospectivity of the area.

Future Work

The Nkoutou target will be the focus of the next phase of work. This region ranks highly based on; rock samples containing quartz-sulphide veining, a maximum fine fraction stream sediment sample result of 1.33g/t Au, and the presence of extensive alluvial artisanal workings.

Analysis

Legend finished the March quarter with $8,851,000 cash plus $3,605,000 of listed investments. Today's results are very promising indeed, with the cash + investments far outweighing the value placed by the market for Legend's iron ore project and promising gold results.

Aphrodite Gold's chairman buys over 1.9m shares on market

Mon, 13 May 2013 21:22:55 +0800

Aphrodite Gold's (ASX:AQQ) chairman Peter Buttigieg has bought 1,991,024 shares in an on market transaction valued at $67,964.82 for a consideration of $0.034 per share.

With the latest purchase, Buttigieg now holds 23,416,024 shares and 750,000 options.

Aphrodite is currently progressing a pre-feasibility study namesake project near Kalgoorlie in Western Australia.

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