Mining Breaks

The continuing run of high-grade assays from field exploration at its 100%-owned Adina lithium project is underlining the potential for co-development alongside Winsome Resources' flagship Cancet project in the James Bay region of Quebec, Canada.
Winsome says results from 26 rock chip assays confirmed strong mineralisation at the recently discovered pegmatite outcrop at Adina, with the highest grade 4.89% lithium oxide and 10 other samples over 2% Li2O.

An independent definitive feasibility study for Vanadium Resources has confirmed its 73.95%-owned Steelportdrift project in South Africa's Limpopo province as one of the world’s lowest cost potential producers.
Exec chairman Jurie Wessels says the DFS illustrates its potential to outperform the competition in favourable markets and resilient under distressed conditions.
The Steelpoortdrift project involves openpit mining of 1.6Mtpa ore at 0.83% to produce about 12,000tpa V2O5 flake at over 98% in year 1-4, rising to 3.5Mtpa at 0.71% for the remaining mine life.
It calculates $US211M start-up capex, delivering post-tax NPV at 7.5% of $A1.9B, IRR of 42% and payback of 27 months.

Australian explorer Southern Cross Gold has identified the potential for a truly significant discovery at its 100%-owned Sunday Creek gold-antimony project after its drilling programs achieved 17 gold equivalent intersections of more than 100g/t cumulative grade by metres.
The company's latest drilling at Sunday Creek, about 60km N of Melbourne in Victoria, produced high to bonanza-grade the highest grades of gold seen on the project to date.

Australian technology developer Alpha HPA has begun commissioning of the precursor production facility at Gladstone in Queensland while it progresses towards a final investment decision on a full scale facility to produce high-purity alumina products for de-carbonising world products.
Alpha is fully funded to commercial production of its high-purity aluminium precursors at the Stage 1 facility and is satisfying the remaining conditions precedent for the full-scale go-ahead focused on product sales, offtakes and project financing.

Australian-based explorer IRIS Metals is preparing to add to the US portfolio that makes it probably the only company in the country with hard-rock lithium mining licences.
The issue of mining licences in the Black Hills by the state of South Dakota over part of the company's Custer project permit IRIS to mine spodumene pegmatites on properties with a history of prolific lithium spodumene ore production.
Exec technical director Chris Connell says it's a significant achievement for IRIS, which plans to begin drilling in Dec.
The company is negotiating over more patented mining claims to enhance the scale and economics of lithium mining.

Canadian-based explorer Gatos Silver has outlined a mine life to 2008 based on an updated mineral reserve estimate at its 70%-owned Cerro Los Gatos project in Chihuahua, Mexico.
The company calculates average production of 7.4Mozpa silver at AISC of $US7.06/oz net of by-product credits, forecasting after-tax cashflow of $79M at an assumed silver price of $22/oz.
CEO Dale Andres says the update, resulting from a ground-up rebuild of its mineral reserve and resource, establishes a solid foundation for the discovery of significant mineralisation.

Explorer CleanTech plans to commence a scoping study in the current qtr after posting a maiden JORC inferred resource of 0.53Mt @ 305mg/litre lithium carbonate equivalent at its Francisco Basin project in Chile.
The estimate is based on the identification of a 212m brine aquifer from 99m depth in the first well of a drill program.
Francisco Basin is within 100km of CleanTech's more advanced Laguna Verde project, which holds resources of 1.51Mt @ 206mg/litre LCE.

Australian miner Danakali has promised a payout to shareholders expected to be over $US100M while embarking on a search for new projects after reaching agreement to sell its 50% stake in the Colluli potash project in Eritrea.
Shanghai-listed Sichuan Road and Bridge Group has signed a non-binding term sheet to pay $166M to acquire the 50% shareholding, to join the JV with Eritrea's National Mining Corporation owning the forecast long-life 1.8Mtpa rock salt producer.
Danakali says the terms on the sale offered its shareholders an attractive post-tax value outcome in the absence of a full equity-funded solution for the project. Completion is targeted for April-May 2023.
It plans to distribute 90% of the net proceeds, expected to be about $121M, to shareholders while the company continues to seek new projects and growth opportunities.

Australian miner Core Lithium has completed the first sale of spodumene DSO product, shipping post-crushing material from its Finniss project near Darwin in the NT.
The 15,000dmt DSO sale averaging 1.4% Li2O was tendered on a CIF basis to several pre-screened participants active in the lithium-ion battery supply chain. Core says strong demand was reflected in the price achieved.
The sale will enable Core to commission all logistics processes and procedures between the mine and Darwin port for spodumene concentrate production to start in H1 2023.

Indonesian producer Nickel Industries has begun its transition from nickel pig iron to nickel matte production at its Hengjaya project in the Morowali Industrial Park, Sulawesi.
NI says the move prompted by operating partner and major shareholder Tsingshan enables sales of nickel matte from its laterite ore into the Class 1 nickel electric vehicle battery supply chain.
The switch to nickel matte was timed to follow Hengjaya's Angel project at the Weda Bay industrial park reaching nameplate production. Its rotary kiln electric furnace now operates at over 130% of nameplate capacity, supporting expectations of $US52-55M EBITDA in the Sept qtr.

Liontown Resources is set to move into execution phase on its planned 4Mtpa lithium and tantalum mining operation at its 100%-owned Kathleen Valley project in Western Australia's Goldfields region.
Construction of the project 60km N of Leinster is expected to ramp up quickly, with commissioning of the initial 2.5Mtpa project targeted in the June 2024 qtr.
Kathleen Valley is forecast to deliver 500,000tpa SC6.0 spodumene concentrate before expanding within six years to 700,000tpa.

Burkina Faso miner West African Resources has maintained production guidance for its 90%-owned Sanbrado gold mine following a so-far peaceful change in the country's military leadership.
The Australian-based company says Sanbrado operations continued as normal and all staff and contractors are safe after self-declared military leader Ibrahim Traore displaced president Paul-Henri Damiba.
Damiba, who had seized power in a coup earlier this year, resigned after Traore promised to restore constitutional rule by July 2024 and guarantee his security.
With Sept qtr results to be reported in coming weeks, WAF says Sanbrado remains on track for FY2022 production of 220,000-240,000oz at AISC of $US1,040-1,100/oz.

West Australian miner Red 5 is positioned for the ramp-up and further expansion of its new King of the Hills gold mine after gaining strong support from domestic and international institutional investors for a $A60M, 2-tranche placement.
The funds will enable Red 5 to expand the KOTH process plant throughput capacity from its current 4.7Mtpa to about 5.5Mtpa in FY24 and conduct a feasibility study into its optimum long-term plant capacity.
After pouring its first gold in June, the openput and underground mine is expected to achieve commercial production and steady-state operations in the current qtr.
The placement of 375M shares at 16c, 15.8% below its Sept 28 close, will be followed by a $6M share purchase plan.

The rift between Energy Resources Australia and its 86% shareholder Rio Tinto has escalated into the announcement of the planned resignations of the uranium miner's chairman and two independent directors.
Chairman Peter Mansell and non-executive directors Paul Dowd and Shane Charles announced they could not continue to work with Rio.
Their departure leaves the company in the hands of Rio appointed directors Justin Carey, Jacques van Tonder and Rosemary Fagen.
ERA is continuing to dissent from Rio's criticisms over the rehabilitation 

The Beyondie sulphate of potash mine in Western Australia's Little Sandy Desert is back on the road towards nameplate 120,000tpa production by the Sept 2024 qtr as owner Kalium Lakes prepares to commence design-grade Kainite-type mixed salt feed within a week.
Since its mid-Sept start-up following plant rectification and optimisation works, the plant has been fed lower-grade KTMS material to test the system and build density in the internal process circuits.
KLL is targeting 80,000tpa SOP production run-rate by the March 2023 qtr on the way to its nameplate.

The split between Rio Tinto and its 86%-owned subsidiary Energy Resources of Australia over the costs and progress of their rehabilitation of the Ranger uranium project in the NT has widened, with a call on ERA chairman Peter Mansell to resign.
Rio says a board renewal, starting with Mansell's departure, is needed to bring new perspectives to the giant task of restoring the environmentally sensitive site from the impacts of nearly 40 years of mining.
The parent company is also taking a stand on suggestions of more mining in the area, against the wishes of its native titleholders.

International mineral sands specialist contractor Piacentini & Sons has been awarded the mining services contract by JV partners Sheffield Resources and Yansteel at their Thunderbird project in Western Australia's Kimberley region.
The 9-year Kimberley Mineral Sands contract, with 5-year extension option, will see the WA-based private company supply and operate a mining unit plant plus mining fleet for dozer-push ore production at the Dampier Peninsula deposit 70km W of Derby.
Sheffield chief executive Bruce Gifford says the award is one of the final commercial steps to completing project financing for Thunderbird, which is forecast to produce 1.4Mtpa zircon and ilmenite concentrates over a 36-year mine life.

START THE WEEK: WHAT YOU NEED TO KNOW
The direct and indirect impact of the Russian invasion of Ukraine on mining costs has continued the steady decline in the global gold sector's costs margins into the June 2022 quarter.
With all-in sustaining costs rising against the background of high but comparatively stable gold prices, average AISC margins recorded by UK-based consultancy Metals Focus fell to $US585/oz - representing a 37% decline from its peak of $937/oz in the September quarter of 2020.
Metals Focus reports the average AISC reached $1,289/oz in Q2, maintaining its record of increasing almost every quarter over two years. The rise was driven by higher input costs combined with high gold prices incentivising higher-cost and often lower-grade production.

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LAST WEEK’S BIGGEST STORIES
(Some articles may be accessible only by subscribers)

• ANGLO AMERICAN CUTS LOS BRONCES GUIDANCE
• RIO TINTO APPROVES $55M KENNECOTT UNDERGROUND START
• GLOBAL LITHIUM RESOURCE BATTERY DEAL WITH SKO
• COPPER MOUNTAIN MINING ADDS BC MINE LIFE
• NICKEL INDUSTRIES PUSH TO GLOBAL TOP 10
• SAYONA MINING PICKS FOUNIER FOR NAL RESTART

West Australian explorer Meeka Metals has deferred completion of the PFS for its 100%-owned Murchison gold project until mid-2023 to allow it to include an initial mineral resource for its promising St Anne's prospect.
MD Tim Davidson says positive results from continuing drilling gives Meeka confidence the large gold system will continue to grow.
RC drilling results are highlighted by visible gold and include 32m @ 16.07g/t from 48m and 20m @ 20.74g/t from 48m.

A strong start to Sept qtr (Q1) production at its DeGrussa mine in Western Australia and MATSA in Spain has encouraged Sandfire Resources to lift its FY23 group production guidance to 83,000-91,000t copper, 78,000-83,000t zinc, 6,000-10,000t lead, 12,000- 14,000oz gold and 2.2-3.2Moz silver.
The change from its previous guidance of 81,000-89,000t Cu, 78,000-83,000t Zn, 6,000-10,000t Pb, 10,000-12,000oz Au and 2.2-3.2Moz Ag comes as Sandfire formally approves the DeGrussa extension project that will see processing operations continue until early 2023.
DeGrussa is expected to complete sulphide processing next month but will continue processing low-grade stockpiles until Jan 2023.

A five-week shutdown while the Australian defence forces conduct military exercises and weapons testing will punctuate a new drilling campaign by South Australian explorer Marmota at its Aurora Tank discovery.
Marmota will begin a quick follow-up drilling program next week after reporting bonanza gold grades up to 217g/t over 1m reported this week from drilling in the Goshawk Zone at Aurora Tank. The detailed assay results also demonstrated multiple high-grade extensions of mineralisation in two directions and at depth.
The company's Gawler Craton project lies within the Woomera Prohibited Area, a military zone covering 122,000sqkm NW of the Woomera base and townsite.
Marmota says drilling will stop from  Oct 16 until the weapons testing exercise ends on Nov 5 (which old-timers will remember used to be celebrated in Australia as Guy Fawkes Day).