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![Spartan Resources](https://investingnews.com/media-library/spartan-resources.png?id=50745552&width=1200&height=800)
Never Never Hits 952,900oz @ 5.74g/t Dalgaranga Moves to 1.7Moz @ 2.49g/t
43% increase in Dalgaranga Project Resource ounces, 13% uplift in grade and 27% more tonnes – all within 2km of the plant
Spartan Resources Limited (“Spartan” or “Company”) (ASX: SPR) is pleased to announce the Updated Mineral Resource Estimate (“MRE”) for its 100%-owned Dalgaranga Gold Project “DGP”, located in the Murchison region of Western Australia.
Highlights:
- Updated Mineral Resource Estimate (“MRE”) completed for the Dalgaranga Gold Project, located on granted Mining Leases and within 2km of the 2.5Mtpa processing plant:
- 21.15Mt @ 2.49g/t gold for 1,692,600 ounces, comprising:
- 5.16Mt @ 5.74g/t gold for 952,900 ounces – Never Never Gold Deposit
- 15.99Mt @ 1.45g/t gold for 739,800 ounces – Gilbey’s Complex
- Resource Classification breakdown for the updated Dalgaranga Gold Project MRE:
- 12.96Mt @ 2.67g/t gold for 1,119,000 ounces (66%) classified as Indicated;
- 7.93Mt @ 2.25g/t gold for 573,610 ounces (34%) classified as Inferred.
- Resource Classification breakdown for the updated Never Never Gold Deposit MRE:
- 3.67Mt @ 5.93g/t gold for 700,700 ounces (74%) classified as Indicated;
- 1.49Mt @ 5.28g/t gold for 252,100 ounces (26%) classified as Inferred.
- In-fill drilling from surface has converted circa 74% of the updated Never Never Gold Deposit MRE ounces to the higher confidence Indicated Resource classification, available for future conversion to Ore Reserves.
- The underground component of the updated Never Never MRE averages more than 1,690 ounces per vertical metre (“ozpvm”). Additionally, the apparent strike length of high-grade mineralisation at depth has increased to over 200m north-south and growing.
- Targeted in-fill drilling and updated Resource estimation of the higher grade Four Pillars and West Winds gold prospects has delivered an updated Gilbey’s Complex MRE of:
- 11.32Mt @ 1.34g/t gold for 486,500 ounces with 86% or:
- 9.28Mt @ 1.38g/t gold for 410,800 ounces classified as Indicated and constrained within a A$2,800/oz pit.
- Updated Spartan Group Mineral Resources for the Dalgaranga and Yalgoo (“Murchison”) and Glenburgh and Egerton (“Gascoyne”) Projects now stand at:
- 44.16Mt @ 1.77g/t gold for 2,512,400 ounces (69% or 1.7Moz Indicated)
This latest MRE update comprises an update for the high-grade Never Never Gold Deposit as well as an update for the Gilbey’s Complex, which comprises the higher-grade Four Pillars and West Winds Gold Prospects. The updated Mineral Resource Estimate is summarised below:
Table 1. Never Never MRE Dec 2023, reported by Mining Type and Resource Classification - combined open pit (>0.5g/t Au <270mRL) and underground >2.0g/t Au, >270mRL) *
Table 2. Gilbey’s Complex MRE Dec 2023, including, Plymouth and Sly Fox. Reported by Mining Type and Resource Classification - combined open pit (>0.5g/t Au within a A$2,800 pitshell) and underground >1.0g/t Au, below a A$2,800 pitshell) *
Table 3. Dalgaranga Gold Project Combined Resource as at December 2023
Management Comment
Spartan Managing Director and Chief Executive Officer, Simon Lawson, said: “This is an exceptional result for our shareholders which reflects the hard work of the Spartan team over the past year. To be able to post a high-grade Resource for the Never Never discovery of just under 1 million ounces at an average grade of 5.74g/t less than a year after emerging from a 10c recapitalisation is an incredible outcome and a remarkable story – one of which we are justifiably proud!
“The centrepiece of this MRE update is once again the Never Never discovery, which has grown remarkably within short order from a resource of 303,000oz at the start of 2023, through to 721,000oz in July, and now, less than 12 months later, reaching 952,900oz – 74% of which is now classified as Indicated.
“Importantly, Never Never continues to emerge as an exciting growth story at depth, with recent visible gold intercepts having been logged below the current MRE boundary and awaiting assay. The deposit remains open and appears to be shallowing and flattening slightly to the south due to the flexure zone mentioned in Tuesday’s announcement. This presents as a tantalising target for a fan of directional drilling from a parent hole that we plan to drill early in the New Year to systematically understand the potential of Never Never Deeps.
“I would also like to highlight the importance of the recognition and structural re-interpretation of the high- grade Four Pillars and West Winds gold prospects, part of the larger Gilbey’s Complex MRE presented here. We believe these high-grade structures within and beneath the current Gilbey’s open pit, when combined with the incredible high-grade endowment of the Never Never Gold Deposit, are a key part of any longer-term future mine plan.
“We now have 739,800 ounces at an average grade of 1.45g/t in resource at Gilbey’s as a starting point for the future. That grade is more than 50 per cent above the average resource grade at which the Company was mining last year. The identification and focus on the higher-grade aspects of the Gilbey’s sequence bodes extremely well for the potential to add bulk tonnage open pit ore feed at very attractive grades into the high-grade ore feed that we expect will come from the Never Never underground mining complex. The Company’s mining strategy for these deposits located within the floor of the current Gilbey’s open pit is likely to be somewhat different from what was contemplated and mined before, albeit we are very excited about the possibilities here.
“Another key takeaway for investors is that while this is just an interim update in what is a rapidly unfolding growth story at Dalgaranga, the Company has more drill assays to come and many more high-grade targets sitting along-strike from Never Never, Four Pillars and West Winds. We have a full target set and we have shown what our team is capable of with our drilling strategies. We are well positioned and set to continue to deliver more high-grade ounces at very attractive gold grades.
“We are all looking forward to another massive year in 2024. If we can repeat anything like the success we have enjoyed in 2023 in terms of continued growth in high-grade resource ounces within a 2km radius of the Dalgaranga plant, then Spartan is set for a very exciting future!
“Upon reflecting on 2023, this has been a huge team effort, and I would especially like to thank our Exploration and Drill Management team on site, our Resource team and our incredible Finance team for their diligent stewardship of our exploration programs and prudent management of our finances.
“I would also like to thank and wish all of our loyal shareholders a very safe and festive summer season and we look forward to presenting more high-grade drill results, more rapid resource growth, and as a consequence an exciting mine plan and Ore Reserves in 2024.”
Click here for the full ASX Release
This article includes content from Spartan Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Spartan Resources
Overview
Australia is the second largest producer of gold worldwide, according to the US Geological Survey, and Western Australia (WA) is the dominant player in the nation’s gold market accounting for nearly 70 percent of the total production. Gold mining is the third-largest commodity sector by value in WA, producing nearly 6.9 Moz (or 214 tonnes) in 2022 valued at A$17.8 billion. Eleven of the world’s biggest gold mines are in WA, where Spartan Resources is advancing its flagship Dalgaranga Gold Property.
Formerly known as Gascoyne Resources, Spartan Resources (ASX:SPR) is engaged in the exploration, evaluation and development of gold projects. The company is currently undergoing a pivotal transformation, underpinned by the exceptional high-grade Never Never gold discovery in 2022, less than 1 kilometre from its less-than-5-year-old, existing 2.5-Mtpa carbon-in-leach processing facility in care and maintenance, and the lower grade open pits at Dalgaranga.
Drilling at Never Never has led to the discovery of 721 koz at an average grade of 5.85 g/t gold. Driven by the potential for further resource upgrade, Spartan secured $50 million in funding in February 2023 to support its aggressive exploration program at Never Never. This program, which is intended to last 18 months, is targeting: more than 300 koz reserve at a grade exceeding 4.0 g/t gold; more than 600 koz resource at a grade exceeding 5.0 g/t gold; and the development of a 5-year mine plan capable of generating 130 to 150 koz of gold per annum.
The Dalgaranga property is in proximity to multiple gold-producing projects including Ramelius Resources’ Mt Magnet Project, Musgrave Cue Project, and Westgold Resources’ Tuckabianna gold mill. Historically, Mt Magnet has produced over 6 million ounces since discovery in 1891, which increases confidence in the resource potential of Dalgaranga.
In parallel with the company’s planned exploration program at Never Never, Spartan is progressing with permitting and evaluation of its 244-koz Yalgoo Gold Project, which is expected to provide an important source of ore feed to supplement the high-grade ore from Never Never. In addition, the company owns the 537-koz Glenburgh and Mt Egerton Gold Project in the Gascoyne region, which has the potential to become a second production hub for Spartan Resources.
Company Highlights
- Spartan Resources Limited is an Australia-based company engaged in the exploration, evaluation and development of gold projects. The company was formerly known as Gascoyne Resources but changed its name to Spartan Resources Limited (Spartan) in August 2023 after a series of incredible discovery drill holes and exploration success that justified the transformation of the business.
- Spartan is currently focused on the newly discovered high-grade Never Never gold deposit, part of its 100-percent-owned Dalgaranga Gold Project (Dalgaranga) in Western Australia. The Never Never discovery was made in mid-2022 and is less than 1 kilometre from the existing 2.5-Mtpa carbon-in-leach processing facility and the main open pit at Dalgaranga. The Dalgaranga Process Plant is less than five years old and is well suited to the new discovery and existing lower grade ore deposits.
- Spartan’s Dalgaranga gold project is located 475 kilometres northeast of Perth and approximately 65 kilometres west of the 6-Moz high-grade Mt Magnet gold camp in the Murchison Region of Western Australia.
- In November 2022, the company, then Gascoyne, suspended mining and milling operations of the former focus of its operations, the lower grade circa 0.8-1.0g/t Gilbey’s open pit to focus on the recently discovered high-grade Never Never gold deposit.
- The strategy has thus far paid off extremely well with drilling, defining a growing high-grade mineral resource of 3.8 Mt @ 5.85 g/t gold for 721,200 oz. The Never Never gold resource, when added to the existing lower-grade Dalgaranga Gold project mineral resources brings the total resource to 16.7 Mt at 2.2 g/t gold for 1.18 Moz. Keep in mind the discovery and establishment of the high-grade Never Never deposit has more than doubled the grade of the previous Mineral Resource Estimate on which the infrastructure was built.
- Spartan also has three other gold projects, the Yalgoo Gold Project, which is 110 kilometres west of, and two others roughly 500 kilometres further north of Dalgaranga, the Glenburgh and Egerton Gold Projects. With all resources combined, the global mineral resource estimate for Spartan currently stands at 38.51 Mt at 1.6 g/t gold for 1.96 Moz of contained gold.
- Looking to the immediate future, the potential for further growth within the Spartan portfolio is extensive. The current 32,000-metre drilling program at Dalgaranga is already underway with the aim to extend the existing Never Never resource at depth, as well as identify new look-alike targets along strike to the north and south, such as the newly identified higher-grade Four Pillars and West Winds shoots, and follow up of the Patient Wolf high-grade target 1.6 kilometres north of the Never Never discovery.
- The next resource update will summarise the efforts of the current drill campaign across multiple targets and is scheduled very shortly in Q4 2023.
- Spartan raised $50 million in February 2023 to underpin an 18-month exploration and strategic plan (the “365” strategy) aiming to develop a five-year mine plan with the goal of generating 130 to 150 koz of gold per annum. This strategy appears well on track with the resource target, the “600” already achieved with work underway on the “300” reserves and establishing the minimum “5-yr” mine life currently.
- An additional $25 million was raised in November 2023 to accelerate Spartan’s high-grade growth strategy and support an expanded exploration campaign at Dalgaranga in 2024.
- Also in February 2023, the company established an exploration target of 4 to 5 Mt @ 4.6-6.2 g/t for 600 koz to 1 Moz gold at the Never Never Gold Deposit.
- With a current resource of 3.8 Mt @ 5.85 g/t for 721 koz gold and an imminent resource update due, Spartan has delivered on what it said, and looks solid to continue to do so.
Key Projects
Dalgaranga Project
Spartan Resources’ flagship Dalgaranga Gold Project is located 475 kilometres northeast of Perth and approximately 65 kilometres northwest of Mt Magnet in Western Australia. The Dalgaranga Project includes a fully developed operation comprising a fully established gold mine, a 2.5 Mtpa carbon-in-leach processing facility, modern camp accommodation, and an airstrip.
The Dalgaranga mine produced 71,153 oz in FY 2022 before being placed on care and maintenance in November 2022 to facilitate the implementation of a new strategic and restructuring plan. The new plan is focused on the high-grade Never Never gold deposit discovered in 2022, less than 1 kilometre from the existing 2.5 Mtpa processing facility.
Never Never Gold Deposit is located within the Dalgaranga property immediately to the north of Gilbey’s open pit and within 1 kilometre of the process plant. Never Never is much higher grade than any of the previously defined ore bodies at Dalgaranga and appears to be far more structural, fold and/or shear-hosted as opposed to the more stratigraphic/shale-associated historically defined Gilbey’s series of gold deposits.
The strategy to focus on high-grade Never Never has thus far paid off with drilling defining a mineral resource of 721 koz gold contained within 3.83 Mt at 5.85 g/t. The Never Never gold resource when added to the Dalgaranga Gold project mineral resources brings the total resource to 16.7 Mt at 2.2 g/t gold for 1.18 Moz.
In light of the success of the drilling program, Spartan has expanded its current drill program to 32,000 metres with up to six rigs operating on-site (previously, 25,000 metres with four rigs). The expanded program looks to target extensions of known mineralization, further upgrading the high-grade 721,200 oz mineral resource estimate (MRE) for the Never Never Gold Deposit. The company ultimately aims to deliver a new mine plan to feed the 2.5 Mtpa processing plant for at least five years. The target for the five-year mine plan is to deliver gold production of 130 to 150 koz per annum.
Some of the more significant assay results under the current drill program include:
- Drill-hole DGRC1305-DT registered the deepest ever gold intercept 576 metres down-hole at Never Never. While the assay results for the hole are yet to be published, this discovery is significant as it demonstrates that the deposit remains open at depth.
- Drill-hole DGRC1283-DT returned 18.56 metres at 6.71 g/t gold from 495 metres, including a high-grade mineralized zone of 2.56 metres at 32.19 g/t gold.
- Drill-hole DGRC1276-DT returned 7 metres at 34.34 g/t gold from 372 metres, including high-grade mineralized zones of 1 metre at 95.90 g/t gold and 2.5 metres at 49.50 g/t gold.
- Drill-hole DGRC1271-DT returned 3.2 metres at 7.95 g/t gold from 310.3 metres, including a high-grade mineralized zone of 1 metre at 12.29 g/t gold.
- Drill-hole DGDH039, targeting the West Winds area, intersected 20.52 metres at 2.38 g/t gold from 420.48 metres, including a high-grade zone of 5 metres at 6.22 g/t gold.
- Drill-hole DGRC1245, targeting the Arc gold prospect, intersected 4 metres at 8.33 g/t gold from 106 metres including high-grade zone of 1 metre at 30.66 g/t gold.
Notably, in October 2023 Spartan announced a new gold discovery, Patient Wolf, located immediately to the north of Never Never which returned a massive 10 metres at 19.84 g/t gold, including a high-grade zone of 4 metres at 40.15 g/t gold. This new site is located 1,600 metres north of Never Never and 1.9 kilometres from the processing plant.
The company will now accelerate planned resource diamond drilling across multiple high-grade targets, including Never Never, Four Pillars, and West Winds along with a dedicated RC rig at the new Patient Wolf prospect. The ultimate aim is to deliver the scheduled resource update for the project in Q4 2023, which will grow Spartan’s high-grade resource inventory within a 2-kilometre radius of the 2.5-Mtpa Dalgaranga process plant.
Spartan is well-funded to support its drilling programme and develop its five-year mine plan, having secured a $50 million funding package in February 2023, which included a $26.3-million equity raising, a $21.3-million investment from highly respected global resources private equity fund Tembo Capital, and a $2.5-million unsecured loan from existing major shareholder, Delphi.
Yalgoo Gold Project
The Yalgoo Gold Project is located 110 kilometres by road from the Dalgaranga Gold Project and comprises two deposits, namely the Melville deposit and the Applecross deposit, which is adjacent to the northern end of the Melville deposit. The Yalgoo Gold Project hosts a mineral resource of 243,600 oz contained within 5.2 Mt at 1.4 g/t gold. Exploration activity at this project has slowed down with the Never Never deposit at Dalgaranga taking priority as the next source of higher-grade ore.
Glenburgh Gold Project
The Glenburgh Gold Project (Glenburgh, spread over an area of 2,000 square kilometres, is located in the southern Gascoyne region of Western Australia. Glenburgh has a JORC 2012 mineral resource estimate of 16.3 Mt at 1.0 g/t for 510,100 ounces of gold.
Mt Egerton Gold Project
Mt Egerton Gold Project is spread over an area of 200 square kilometres and is located in the Gascoyne region of Western Australia. Two known deposits exist at Mt Egerton – Hibernian and Gaffney’s Find – both located within granted mining leases. Mt Egerton hosts a current resource of 27,000 oz of contained gold, with strong growth potential.
Management Team
Simon Lawson – Managing Director
Simon Lawson is a professional geoscientist with more than 16 years of operational experience spanning multiple commodities and jurisdictions. He was one of the founders of Northern Star Resources (ASX:NST) and under his leadership transformed the company from a small Western Australian gold miner into a multi-billion dollar global gold mining heavyweight. He has also worked with Firefly Resources Ltd., Superior Gold (TSXV:VSGD) in various senior leadership roles. Lawson brings considerable operational management and technical experience to the board of Spartan and has set in place a firm strategy to take Spartan forward through consistent production, improved cash flows, commercial dealings, and near-term production-focused resource/reserve growth.
Rowan Johnston – Non-Executive Chairman
Rowan Johnston is a mining engineer (graduating from the West Australian School of Mines) with significant experience as an executive and non-executive director. He is currently interim non-executive chairman of Wiluna Mining Corporation, non-executive director of Kin Mining NL, and has previously been managing director of Excelsior Gold. Johnston has worked and studied in the mining (primarily gold) industry for 40 years throughout Australia and overseas and has experience working for owners, consultants, and contractors. He has worked through several feasibility studies, start-ups, construction, and production.
Hansjoerg Plaggemars – Non-Executive Director
Hansjoerg Plaggemars is a seasoned professional with experience in structured debt finance, and equity capital markets including capital increases and decreases, restructurings and insolvencies. He has worked as CFO in various industries including software, retail, prefabricated housing and e-commerce. Since 2017, he has set-up his own consultancy firm, Value Consult. Plaggermars currently sits on a number of boards as a non-executive director or supervisory member. He holds a degree in business administration from the University of Bamberg.
David Coyne – Non-Executive Director
David Coyne has over 30 years of experience in the mining, engineering and construction industries, both within Australia and internationally. Prior to joining Spartan, Coyne held senior executive positions with Australia-listed companies Macmahon Holdings, VDM Group, Peninsula Energy, and with unlisted global manganese miner Consolidated Minerals. He has previously served on the boards of listed companies such as Peninsula Energy and BC Iron.
John Hodder – Non-Executive Director
John Hodder is a geologist by background with a B.Sc. in geological sciences and a B.Com. in finance and commerce from the University of Queensland. He also has a master’s in finance from London Business School. He has served as a director of a number of junior mining companies and has significant experience of operating and investing in Africa. He also worked at Suncorp and Solaris as a fund manager focusing on the resource sector managing an index-linked natural resource portfolio of A$1.25 billion.
Tejal Magan – Chief Financial Officer
Tejal Magan is a chartered accountant with over 10 years of experience in the mining, oil and gas, and construction industries, within Australian and internationally listed companies. She has been at Spartan Resources since December 2018. Previously, she worked with Austal, a shipbuilding company, where she held the role of financial controller for the Australian business unit. Before joining Austal, she worked at Cliffs Natural Resources, a global mining company, where she held various roles including accounting and reporting controller, corporate controller, and senior corporate accountant.
Craig Jones - Chief Operating Officer
Craig Jones is a qualified mining engineer with more than 28 years’ experience in West Australian underground hard-rock mining operations, primarily in operational leadership roles. Prior to joining Spartan, he was the chief executive officer of Poseidon Nickel and previously the chief operating officer for Bellevue Gold, where he played an instrumental role in establishing the restart of the historical operation, leading the feasibility study and forming part of the team that delivered financing of the project. An inclusive and hands on leader, Jones is renowned for building engaged and driven work cultures and for his dedication to working collaboratively across diverse stakeholder groups.
This article was written in collaboration with Couloir Capital Ltd.
Viani - Low Sulphidation Epithermal Gold Project License Renewed
Advanced gold and copper explorer, Alice Queen Limited (ASX:AQX) (Alice Queen or the Company), is pleased to advise that it has received notification from the Mineral Resources Department (MRD) of Fiji that its highly prospective low sulphidation epithermal (LSE) gold project, Viani (SPL1513) located on the Pacific Rim of Fire, on Fiji’s second biggest island Vanua Levu, has been renewed for a further three years, commencing on 3 July 2024.
Highlights
- MRD notified Alice Queen on Friday 19 July 2024 via email that its Viani license (SPL1513) has been renewed for a further three years with effect from Wednesday 3 July 2024.
- Viani, located on the Pacific Rim of Fire on Vanua Levu in Fiji, covers an area greater than 200km2 and is largely under explored (see Figures 1 and 2).
- The Dakuniba prospect within Viani has been previously sampled where epithermal gold mineralisation has been recorded in outcrop samples over a >3km strike length.
- Multiple epithermal veins within the Dakuniba prospect area, 5km by 1.5km surface gold-in- soil geochemical anomaly - the footprint of the epithermal mineralisation is comparable to other economically productive gold epithermal deposits globally.
- Previous drilling by Japanese International Cooperation Agency (JICA) in 1997 focused on a small, shallow part of the overall system and intersected high grade epithermal gold mineralisation.
- (Hole MJFV-5 (see Figure 3) over 6 vein zones at 50 to 100m below surface with best results, 0.6m @ 27.6 g/t Au & 900 g/t Ag and 0.4m @ 11.7 g/t Au1 and remains open in all directions.
- The JICA drilling was limited to only 600m of strike-length of the 5km long gold-in-soil anomaly (>10ppb Au) supported by epithermal geochemistry i.e., Ag and As.
- Based on discovery knowledge from epithermal systems worldwide, it is apparent the historical drilling was an inadequate test of the Viani gold system.
Alice Queen’s Managing Director, Andrew Buxton said,
We are delighted the SPL1513 license has been renewed for a further three years and look forward to continuing to work alongside the Fiji Mineral Resources Department as we commence our next phase of exploration activities. The Viani Gold Project is a tremendous prospect which has demonstrated it has the potential to become a significant epithermal system. With the license now renewed and the Company fully funded for its Fiji exploration plans, Alice Queen will continue the systematic exploration of the Viani Gold Project with the Company having commenced planning for its upcoming exploration programs.
Viani
Figure 1. Fiji Project locations.
Figure 2. Location of the Dakuniba Prospect in relation with SPL1513.
The Viani project (SPL1513) covers an area greater than 200km2 on the Caukadrove Peninsula on the Pacific Rim of Fire, Vanua Levu, Fiji. It is well serviced from Savu Savu on Vanua Levu and is highly prospective for a high-grade LSE gold system (see ASX releases 2 December 2022, “VIANI UPDATE” and 6 March 2023, “ALICE QUEEN UPGRADES VIANI EPITHERMAL PROJECT”.
Following a renewal process for Viani (SPL1513) which the Company commenced earlier this year (including as announced in the Quarterly Activities Report released to ASX on 23 April 2024), MRD notified Alice Queen on Friday 19 July 2024 that the license had been renewed with effect from Wednesday 3 July 2024 for a further three years. The renewed license includes typical terms for a license of this nature, including minimum work program and expenditure requirements.
Whilst the greater project area remains under explored, extensive sampling, trenching and (historic) limited drilling of the Dakuniba prospect area has been previously completed.
Previous drilling by JICA in 1997 returned multiple epithermal gold intersections in shallow drilling. Hole MJFV-5 (see Figure 2) intersected 6 vein zones at 50 to 100m below surface (best results include 0.6m @ 27.6ppm Au & 900ppm Ag, 0.4m @ 11.7ppm Au & 4.3ppm Ag)1. The JICA drilling was limited to only 600m of strike-length of the 5km long gold-in-soil anomaly (>10ppb Au) supported by epithermal geochemistry i.e., Ag and As.
Further details in relation to upcoming exploration plans at Viani will be announced in due course.
Click here for the full ASX Release
This article includes content from Alice Queen Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
$215 Million Debt Finance for the Waroona Renewable Energy Project
Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to announce that it has signed a senior debt mandate with Infradebt Pty Limited (Infradebt), an Australian specialist infrastructure fund, for Infradebt to provide senior project finance debt for the construction and operation of Stage One of Frontier’s Waroona Renewable Energy Project (Waroona Project). Stage One of the Waroona Project comprises a 120MWdc solar facility and an 80MW/360MWh DC coupled battery energy storage system.
HIGHLIGHTS
- Infradebt to provide up to $215 million senior project finance debt for the Stage One development of its Waroona Project
- Key terms include a debt tenor of 17 years and an innovative repayment structure that allows the Project to maximise exposure to its attractive economics
- The deal includes a long-term partnership for Infradebt to finance further battery projects developed by Frontier, including Stage Two of the Waroona Project
- Infradebt is an Australian based infrastructure financing specialist and is a significant lender to multiple renewable energy projects in Australia
- Infradebt’s Energy Transition Fund (ETF) is dedicated to financing grid scale batteries. Existing investments include Genex Power’s 50MW/100MWh Bouldercombe Battery in Queensland and Neoen’s 100MW/200MWh Capital Battery in the ACT
- The Infradebt Ethical Fund (IEF), Australia’s first ethically screened infrastructure debt fund, has a number of existing Western Australian exposures including the 180MW Warradarge Wind Farm, 40MW Greenough Solar Farm and 35MW Albany Grasmere Wind Farm
- Infradebt investors include Australian superannuation funds and family offices
- Long-form facility agreement and security documentation are expected to be executed in September 2024
- The Company continues to pursue potential investment by a strategic partner
CEO Adam Kiley commented: “The Company is delighted to mandate Infradebt, an Australian based infrastructure specialist, to provide debt financing of up to $215 million for the development of Stage One of our Waroona Project.
The Company received multiple credit endorsed proposals as part of the debt financing process from several major financial institutions, however, the Infradebt offer was superior, with a highly attractive tenor and interest rate, whilst also providing greater flexibility compared to alternatives. Infradebt’s proposal is also for 100% of the debt financing, meaning the Company will only deal with a single party compared to a syndicate solution.”
Frontier mandates specialised infrastructure financier
Following the release of the Stage One Definitive Feasibility Study (DFS) in February 2024, a debt financing process commenced, led by debt advisory firm Leeuwin Capital Partners. Following receipt of multiple proposals, the Company has mandated Infradebt (Mandate) to provide debt financing for up to $215 million (Project Finance). The DFS estimated the total capital cost for Stage One at $304 million1.
The Project Finance will be funded by discretionary funds managed by Infradebt and co- investors advised by Infradebt. Infradebt has confirmed that it has committed funds for the purpose of providing the Project Finance. The majority of the Project Finance will be funded by the Infradebt Energy Transition Fund, a senior debt fund mandated specifically to provide debt finance to utility-scale battery projects in Australia.
The Mandate sets out the Project Finance terms, an indicative timetable for completion of the arrangements under which the Project Finance would be provided and other provisions that are expected to be included in long-form Project Finance documentation.
The facility has a base rate (a combination of three-month BBSY and the 12-year Swap Rate) plus a margin. The facility tenor is 17 years, including the two-year construction period.
A long-form facility agreement and security documentation are expected to be executed in September 2024.
The final debt quantum will be determined after confirmation of the Reserve Capacity Price from the Australian Energy Market Operator (AEMO) in late September 2024. The Benchmark Reserve Capacity Price of $230,000 for the 2026/27 capacity year has already been published2.
Click here for the full ASX Release
This article includes content from Frontier Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
June 2024 Quarter - Activities Report
Rimfire Pacific Mining (ASX: RIM, “Rimfire” or “the Company”) is an ASX-listed Critical Minerals exploration company which is advancing a portfolio of projects within the highly prospective Lachlan Orogen (“LO") and Broken Hill (“BH”) districts of New South Wales (Figures 1, 2 and 4).
Highlights
- Multiple work programs focused on high-value critical minerals – scandium, cobalt, and copper across Rimfire’s NSW projects
- Thick zones of strong scandium anomalism from surface across multiple locations across the 20km² Murga Intrusive Complex;
- 22m @ 273ppm Sc from surface incl 12m @ 353ppm Sc
- 22m @ 172ppm Sc from 2m incl 5m @ 226ppm Sc
- 28m @ 158ppm Sc from 4m incl 6m @ 320ppm Sc
- 25m @ 163ppm Sc from 2m incl 5m @ 242ppm Sc
- 27m @ 162ppm Sc from 3m incl 4m @ 270ppm Sc
- Further Melrose leaching test work generates up to 90% scandium recoveries at atmospheric pressures
- Estimation of a combined JORC Mineral Resource for both Murga North and Melrose Scandium Prospects (Fifield and Avondale Earn-In Projects) underway ahead of completion within the coming weeks subject to receiving outstanding drill assays from the laboratory
- Drilling programs are planned for September 2024 Quarter designed to test copper cobalt targets at Broken Hill and scandium targets at Fifield
- Rimfire completes a placement to raise $1.15M post end of Quarter
Commenting on the Quarterly Activities report, Rimfire’s Managing Director Mr David Hutton said: “Rimfire continues to explore for and discover the critical minerals that are associated with global decarbonisation strategies. We are leveraged to and provide unique ASX investment exposure to scandium – an extremely valuable metal.
Buoyed by the success of our scandium drilling and metallurgical studies carried out during the Quarter we have made the decision to estimate a maiden JORC Mineral Resource for both the Melrose and Murga North Prospects with the work underway.
We expect to announce both resources in the coming weeks with just some Melrose drilling assays awaited on to complete the estimation process.
Looking ahead, the September 2024 Quarter will be pivotal for Rimfire and its shareholders with maiden scandium resources, further scandium drilling and the resumption of copper-cobalt drilling at Broken Hill”.
Introduction and Operational Summary
During the June 2024 Quarter (the “Quarter”), Rimfire’s exploration activities were focused on advancing the Murga and Melrose Scandium Prospects (Fifield and Avondale Earn In Project) with 100 aircore holes (2,664 metres) drilled.
The drilling successfully intersected strongly anomalous scandium at multiple locations across the Murga Intrusive Complex with subsequent re-assaying of anomalous drill samples demonstrating a significant increase in grade.
Buoyed by the success of the drilling, Rimfire has commenced the estimation of a combined JORC Mineral Resource for both the Murga North and Melrose Scandium Prospects.
Also, two further sighter leach tests focused on maximising scandium recovery at atmospheric pressures from Melrose laterite-hosted mineralisation returned recoveries of 62.6% and 90.1% scandium respectively. The latest results represent a significant improvement on previous best scandium recovery of 40% and can be attributed to increased acidity (sulphuric acid) and addition of reagents (NaCl).
To guide the Company’s future metallurgical studies, Rimfire also engaged highly experienced hydrometallugist Mr Boyd Willis as Process Consultant.
The exploration activities at the Fifield and Avondale are funded by Rimfire’s exploration partner
- Golden Plains Resources (GPR) and looking ahead to the September 2024 Quarter, Rimfire will complete the estimate of the combined JORC Mineral Resource for the Murga North and Melrose Scandium Prospects, as well as undertaking further aircore and diamond drilling at Murga to build on the initial resource.
Separately on its 100% - owned projects, Rimfire is preparing to carry out a further round of diamond drilling at its Bald Hill Copper Cobalt prospect commencing in August 2024.
Click here for the full ASX Release
This article includes content from Rimfire Pacific Mining Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Firebird Executes Farm-Out Agreement with Macro Metals on Non-Core Manganese Tenements
HIGHLIGHTS
- Firebird executes farm-out agreement for Macro Metals Ltd (ASX:M4M) to acquire an 80% interest in the Wandanya, Disraeli and Midgengadge Manganese tenements
- Macro will invest an initial $150,000 within the first 12 months and undertake a 10-hole RC drill program with a minimum of 100m to be drilled on each of the four tenements
- Firebird will retain a free-carried 20% interest in the Projects until decision to mine
- Firebird to earn 1% sales commission (based on FOB revenue)
- Agreement enables Firebird to focus on the development of the Oakover Project and the Company’s Chinese manganese sulphate plant
- Agreement gives Firebird exposure to upside from future development of the tenements
- Macro has proven and strong management in the exploration and development of greenfield projects
Firebird Managing Director Mr Peter Allen commented: “This agreement allows Firebird to continue its strategic focus on the Oakover Project and our Chinese LMFP strategy. By partnering with Macro, we leverage their expertise and resources to drive the development of these tenements, which not only ensures that they receive the necessary investment and development attention but also allows Firebird to benefit from potential production and value growth without immediate capital outlay.
“We are confident that this collaboration will unlock value for our shareholders and look forward to a prosperous collaboration with Macro.”
Key Agreement Terms
Firebird has signed a binding Heads of Agreement with Macro Metals Ltd (“Macro”), an unrelated party, whereby Macro has the exclusive right to earn 80% in four tenements (E46/1456, E46/1457, E46/1389 and E45/5906) (Tenements) by committing to spend $150,000 in exploration and development expenditure on the Tenements within 12 months (Agreement).
This expenditure must include at least 10 RC holes, for a minimum total of 100 metres drilled on each of the four tenements. Macro will assume full responsibility for the Tenements over this earn-in period.
Firebird’s 20% interest will be free carried until such time Macro makes a decision to mine, at which point Macro and Firebird will enter into an incorporated joint venture (“SPV”). The SPV will enter into a life of mine, mining services contract with Macro’s wholly owned, mining services subsidiary, Macro Mining Services Pty Ltd, for the provision of all services across the entire pit to customer supply chain on a commercial, arms’ length schedule of rates. Firebird retains the ability to transfer its 20% interest into a 1% royalty. The Agreement also allows for Firebird to earn 1% sales commission (based on Free on Board (FOB) revenue).
Completion of the transaction is conditional upon due diligence to the absolute satisfaction of Macro and any necessary regulatory or third-party consents or approvals required before close of business on 30 September 2024 (or such time as otherwise agreed).
The Agreement otherwise contains terms and conditions considered standard for agreements of this nature.
The Company notes that Mr Evan Cranston is a Director of both Firebird and Macro, however, this Transaction has been approved by the independent Directors of Firebird.
Firebird’s original agreement for the acquisition of the Wandanya tenements was established with Mining Equities Pty Ltd in 2022. Under this agreement, a total shipment milestone consideration of up to $500,000 was to be paid to Mining Equities Pty Ltd in instalments based on export shipments or mine gate sales. Upon reaching the maximum milestone consideration, a 1% royalty would be payable on an FOB basis for export shipments or a mine gate basis for domestic sales. Mining Equities Pty Ltd has agreed to amend the original terms by removing the $500,000 payable with the 1% royalty now payable on all export shipments and domestic sales.
Click here for the full ASX Release
This article includes content from Firebird Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Auric Buys Specific Mineral Rights and Related Assets from WIN Metals for $1.2M
Auric Mining Limited (ASX: AWJ) (Auric) together with WIN Metals Ltd (ASX: WIN) (WIN Metals or WIN) are pleased to announce that the two parties have successfully executed a Binding Term Sheet on 22 July 2024 for the partial purchase of WIN’s nickel and lithium rights within the Munda Gold Project area, water access rights and other related assets, to Auric.
- Binding Term Sheet executed on 22 July 2024.
- Milestone agreement improves pathway to mining a trial pit at Munda Gold Project, potentially in Q1 2025.
- Auric now owns all mineral rights, down to 235m RL, (approximately 150m below surface) over planned mining area.
- Purchase price totals $1.2 Million, including $1.00 Million, for the nickel rights.
- Binding Term Sheet includes sole access to stored water in the 132 North pit by Auric for 3 years from settlement date and shared access for a further 5 years.
- Acquisition includes 7 tenements or applications.
- $100,000 deposit paid to WIN. Additional $600,000 payable at settlement. Further payments totalling $500,000 to be paid over next 12 months.
MANAGEMENT COMMENTS
Auric Mining. Managing Director, Mark English, said: “We now have greater control over our destiny for open pit gold mining at the Munda Gold Project.
“Buying the nickel and lithium rights from WIN Metals down to the 235m RL (which is approximately 150m below surface) and having sole rights to an agreed area means we have now taken another major step forward to commencing a trial pit at Munda.
“There’s not much water around Widgiemooltha, so as part of this transaction we are acquiring access to stored water in the 132 North pit from WIN, removing a significant obstacle for us.
“WIN Metals has been pragmatic about the negotiation. We have reached a highly satisfactory agreement for Auric shareholders.
“We’ve moved Munda along rapidly this year and this hurdle has been removed. We are planning to mine a trial pit in Q1 2025,” said Mr English.
WIN Metals. Managing Director & Chief Executive Officer, Steve Norregaard, said:
“We wish Auric well in its ambition to mine at Munda Gold Project.
“We have no intention of standing in their way and have reached an equitable agreement to sell our nickel and lithium rights, within a specified area, at the Munda Gold Project and minor non-core assets.
“It’s a great result for both companies,” said Mr Norregaard.
Click here for the full ASX Release
This article includes content from Auric Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
S&P Global: US Outpaced by Most Other Countries in Mine Development Times
A report published by S&P Global Market Intelligence reveals that the US lags significantly behind other countries in mine development times, impacting its ability to build strategic mineral resources.
The document reveals that it takes nearly 29 years on average for a US mine to progress from discovery to production, compared to 27 years in Canada and 20 years in Australia. Only Zambia takes longer at an average of 34 years.
This extended timeline puts the US at a disadvantage, especially as demand for the critical minerals needed for energy transition continues to rise. The report points out several key factors behind the delays.
Regulatory hurdles and litigation hinder mine development
S&P Global states that prolonged mine development timelines in the US can be partially attributed to complex regulatory frameworks. The firm notes that while Canada and Australia also face lengthy mine development processes, their mines reliably enter production, which is not always the case in the US.
For instance, the Lithium Nevada project, discovered in 1978, has not yet entered production. Projects like Michigan-based Copperwood and Maturi in Minnesota are also nearing two decades without reaching the production phase.
Litigation is also a significant hindrance for companies looking to bring US mines into production. The country has logged more legal disputes against mining projects than Canada and Australia combined.
US lags behind Canada, Australia on exploration budgets
The uncertainty in the US and risk of litigation have led to investors to lean more toward Canada and Australia, with exploration budgets being higher by 81 and 57 percent, respectively, over the last 15 years.
This underinvestment in the US is particularly concerning given its substantial endowments of critical minerals like copper, lithium, nickel and palladium, which are essential for the growing energy transition movement.
Notably, S&P Global points out that even though Australia is the world's top lithium producer, the US has more than twice the amount of lithium reserves and resources.
Domestic supply chains key for security
As global demand for critical resources surges, the US' reliance on foreign sources poses a strategic risk.
Currently, the US depends heavily on countries like Chile and Australia for its mineral needs. For instance, Chile alone accounts for nearly 70 percent of US imports of refined copper.
Without domestic supply, the US remains vulnerable to supply chain disruptions and geopolitical tensions.
With that in mind, the Biden administration has recognized the need to secure domestic sources of important commodities and has taken steps to address lengthy mine approval timelines.
For example, the Infrastructure Investment and Jobs Act includes provisions that prioritize energy and critical minerals research, and also allocates funds for mineral extraction.
In addition, the US has started trying to decrease its reliance on foreign imports, notably uranium, by allocating over US$2.7 billion to start up its domestic nuclear fuel supply chain.
S&P Global's report includes several recommendations to further strengthen the US' position.
One key suggestion is to streamline the regulatory framework, which could involve establishing a single, coordinating federal agency to oversee the entire mine approval process, reducing overlapping jurisdictions and minimizing delays.
The firm believes that increasing transparency and predictability in the permitting process would also help attract more investment and decrease uncertainty among investors.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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