Mining Breaks

Australian explorer Coda Minerals has approved the immediate start of prefeasibility study work after a scoping study presented a financially robust case for its 100%-owned Elizabeth Creek copper-cobalt project in SA’s OIympic Copper province.
The study outlines the development of two openpits and an underground mine to produce about 25,000tpa Cu and 1,000tpa Co at 1.86% CuEq over 14 years.
Estimated pre-production capex for the 2-stage development is $277M for initial Cu-Co concentrate production to drive early cashflow and $320M to construct an Albion Process hydrometallurgical plant to produce copper cathode, battery-grade cobalt sulphate, zinc carbonate and silver doré.

The Chatree mine in central Thailand has achieved its first gold pour in six years for its Australian-based owner Kingsgate Consolidated, delivering 155.732kg within a week of gaining the approval of the Department of Primary Industries and Mines.

Australian coal miner New Hope has acknowledged it faces $A38.5M economic outflow after completion of court proceedings triggered by the collapse of its subsidiaries Northern Energy Corp and Colton Coal nearly five years ago.
Liquidators appointed by creditors in July 2019 investigated some transactions and subsequently claimed an estimated $174.1M plus interest and costs over allegations of insolvent trading, asset transfers and breaches of duty.
New Hope says the parties have agreed a settlement and release of claims, and the Supreme Court NSW proceedings have now been dismissed.

Queensland Pacific Metals has further strengthened supply security for its planned Townsville Energy Chemicals Hub refinery, signing a binding ore supply agreement with New Caledonian nickel miner Société Minière Georges Montagnat.
The 10-year agreement for up to 200,000wmtpa at typical limonite ore specification of 1.5% Ni and 0.18% Co sits alongside the Australian battery metals refinery’s existing deals with Société Le Nickel and Société des Mines de la Tontouta.
QPM says the further diversification provides additional comfort to financiers eyeing the proposed $US297M, 1.2Mtpa facility.

Developer Firebird Metals has moved significantly towards a major manganese operation at its Oakover project in Western Australia’s East Pilbara region, lifting indicated mineral resource by 80%.
Following its positive scoping study last year, 2,828m infill drilling has resulted in indicated resources of 33.9Mt @ 9.7% Mn at the Karen deposit and 13.1Mt @ 9.7% Mn at Jan Eye. The two deposits were not part of the study.
The overall Oakover mineral resource is now 176.7Mt @ 9.9% Mn, comprising 105.8Mt @ 10.1% indicated and 70.9Mt @ 9.6% inferred.
MD Peter Allen says adding 47Mt indicated resources de-risks the development pathway at the project 85km E of Newman.

West African-focused Robex Resources is set to proceed with long-lead items, starting earthworks and program to complete its feasibility study for development of its Kiniero gold project in Guinea after signing a $US35M bridge loan with independent Australian-based fund manager Taurus Mining Finance Fund No 2.
CEO Benjamin Cohen says the new partnership to build its new flagship project enables Robex to secure its capex requirements and start mobilising its construction team, with WACOM already on site.
The bridge loan is part of a $115M financing program subject of a mandate letter in Jan.

Significant increases in key input costs, particularly electricity, have seen Atalaya Mining slash its FY2022 profit to EUR30.9M from EUR132.2M in the previous year.
Copper production from its Proyecto Riotinto operation in Spain slipped to 52,269t following its logistics issues in Q1 (FY2021: 56,097t). AISC rose to $US3.37/lb ($21.48/lb) against average realised prices of $3.96/lb ($4.22/lb).
Revenue was $361.8M ($405.7M), resulting in EBITDA of EUR55.3M (EUR199.1M).
Atalaya predicts lower electricity prices will assist improved performance in FY2023, when forecast copper production is 53,000-55,000t at $3-3.20/lb.

West Australian explorer Solstice Minerals will extend its search for lookalike structural targets after posting a maiden independent inferred mineral resource estimate of 177,000oz gold (4.6Mt @ 1.2g/t) at its 80%-owned Hobbes project 150km NE of Kalgoorlie.
Solstice says the shallow resource reported by Cube Consulting extends to 160m below the surface, with potential for a modest strip ratio after removing relatively soft cover material.
The Hobbes project is 5km SW of Northern Star’s Porphyry mining centre and close to established mining infrastructure and haul roads.
MD-CEO Nick Castleden says Solstice aims to kick off aircore drilling over priority targets while working up reverse circulation targets.

Australian explorer Sky Metals continues to demonstrate the scale of its 100%-owned Tallebung project in central NSW with the posting of a maiden inferred resource of 10.2Mt @ 0.18% for 18,400t tin.
The resource is open along strike and down-dip, and Sky has also established an exploration target of 16-21Mt @ 0.16-0.2% Sn.
CEO Oliver Davies says the opportunity is also underlined by the ability of up-front TOMRA XRT ore sorting to more than triple the grade. Sky has also shown the tin mineralisation is very amenable to simple and cost-effective gravity concentration to a saleable 60%-plus tin concentrate.

Australian miner Manuka Resources is targeting a three-year build-up targeting production of about 25,000ozpa as it restarts gold production at its 100%-owned Mt Boppy mine in the NSW Cobar Basin.
The return to a project where it ceased openpit mining in the Dec 2021 qtr comes after drilling beneath the pit floor and nearby prospects helped establish a resource of 281,850t @ 4.95g/t.
Manuka has also established stockpiles and tailings deposits from historic mining that are being evaluated.
It plans to re-enter the opencut later in 2023 while drilling of Mt Boppy Deeps to evaluate underground mine development.

Australian-based AVZ Minerals is facing an increasingly tangled web of legal action over the equity rights to the Manono project, the planned $US545.5M development of a 20-year operation delivering 700,000tpa SC6 lithium and 45,375tpa primary lithium sulphate in DR Congo.
AVZ claims 75% of the project plus pre-emptive rights over 15% of the 25% held by DRC state miner Cominière.
However, it’s fighting International Chamber of Commerce arbitration cases in Paris over claims by Zijin Mining Group and Dathomir Mining SARL for 15% stakes in the project.
AVZ argues both cases are vexatious and without merit.

Australian engineer Monadelphous has secured dual 2-plus-5 year contracts to provide maintenance services and sustaining capital projects for global company Albemarle Lithium’s Kemerton operations in WA.
The new contracts, among $A125M in new work and extensions announced by Monadelphous, follow its large-scale structural, mechanical, electrical and instrumentation services for the 50,000tpa lithium hydroxide processing plant.
Monadelphous’ new contracts also include replacing an overland conveyor belt at the Western Turner Syncline mine and 2-year marine infrastructure maintenance extension at Cape Lambert and Dampier ports for Rio Tinto and bridge bearing replacements at Port Hedland for BHP’s WA Iron Ore.
MD Zoran Bebic says Monadelphous has secured about $1.1B in new contracts and extensions in FY23.

Azerbaijan-focused Anglo Asian Mining has further justification for its decision to start construction of an underground tunnel for exploration and production at its Gilar project, with drilling results resulting in significant improvements in the deposit size and confidence.
The non-JORC resource is now 5.64Mt @ 1.37g/t for 249,083oz gold, 0.82% for 46,466t copper and 0.87% for 48,786t zinc.
VP Stephen Westhead says Gilar’s lower zone could supply about 700,000tpa high-grade ore over three years to the Gedabek processing facilities, about 7km away. Anglo Asian was excited by the potential for Gilar to extend production at Gedabek until the Xarxar and Garadag deposits were accessed.

Australian miner Kingston Resources has positioned itself to take advantage of a growing resource base, operating processing plant, substantial surface and underground infrastructure after lifting contained copper and gold by 26% at its Mineral Hill project in NSW.
Following the consolidation of several previously identified deposits within the Mineral Hill mineral system, Jack’s Hut resource now stands at 1.6Mt @ 0.9% Cu, 1.25g/t Au, 0.8% Pb, 0.6% Zn and 20g/t Ag.
As a result, the project’s total mineral resources are now 8.9Mt @ 1.13g/t Au, 28g/t Ag, 1.0% Cu, 1.6% Pb and 1.1% Zn.
Jack’s Hut, which produced 11,913t Cu and 80,256oz Au in 1993-99, retains its underground infrastructure.

The dispute over the environmental impact assessment has delayed the construction start of Aguia Resources’ organic phosphate project in southern Brazil following a positive update of its bankable feasibility study.
MD Dr Fernando Tallarico says the new study reaffirmed the superior project economics of mining the high-grade oxidised ore to produce a unique organic fertiliser.
The phosphate fertiliser contains magnesium, calcium and a range of micronutrients.
Aguia is negotiating to settle public civil action over the environmental impact assessment for its Tres Estradas project. Tallarico says construction of the mine can begin as soon as the action is settled.

Australian-based Besra Gold has lined up funding of up to $US300M from major shareholder Quantum Metal Recovery to fully fund development of its 3Moz-plus Bau goldfield and appraisal of other deposits in Sarawak, East Malaysia.
Besra says the pre-purchase and offtake non-binding drawdown facility with the leading gold distributor, to be delivered at up to $10M monthly, should remove the need for equity financing and project or corporate debt.
The company aims to update its existing feasibility studies, with initial results due by end-2023 and targets commercial production in 12-18 months.

The fluctuating fortunes of the Morning Star mine at Woods Point in Australia’s historic central Victorian goldfields have plunged again with owner White Rock Minerals announcing it has placed the project into care and maintenance.
Exec director Simon Finnis says, while White Rock had found promising grades on McNally’s Reef, funding pressures meant it would be imprudent to continue mining operations.
In more bad news for White Rock, it has lost earn-in partner Thomson Resources from its Mt Carrington silver and gold exploration project in northern NSW. It’s now talking with another potential JV partner.
Finnis says the company will now adjust the carrying values for its two principal Australian assets.

Australian entrepreneur Andrew Forrest aims to strengthen his nickel interests with the launch by his private vehicle Wyloo Metals of an unconditional on-market takeover offer for 100% of Kambalda producer Mincor Resources.
Forrest entities are already the target company’s largest shareholder with 19.9%. The Wyloo offer of $A1.40 per share represents an equity value of $760M and a 35% premium to Mincor’s last closing price.
Wyloo says the acquisition fits its strategy targeting raw materials needed for rapid decarbonisation of the global economy.
It argues the offer represents attractive value to Mincor shareholders given the current risks and uncertainties of prevailing economic and equity market risks.

Australian explorer Metal Bank has identified near-term delivery potential for critical minerals with the posting of a 42% increase in mineral resources at its Millennium copper-cobalt project in Mount Isa, Qld.
The project 35km NW of Cloncurry now holds JORC-compliant inferred resources of 8.4Mt @ 1.23% copper equivalent, comprising 0.09% Co, 0.29% Cu, 0.12g/t Au and 0.72g/t Ag.
Having reached its exploration target range at low cost and improved grade, MBK has established a higher target of 12-14Mt @ 1-1.3% CuEq.
Chair Inés Scotland says the deposit sits at surface on granted mining leases and close to processing infrastructure.

Australian-based Mineral Commodities has made an important step towards restoring profitability at the Tormin mineral sands project on South Africa’s west coast after achieving first production of zircon, rutile, ilmenite and garnet concentrate from the Inland Strands.
Interim CEO Adam Bick says the quick transition two weeks after it commenced processing Inland Strands ore will increase Tormin production and sales revenues.

African technology metals miner Andrada Mining predicts significantly higher tin concentrate production while continuing to assess options for achieving early lithium revenues at its Uis project in Namibia.
A record final quarter lifted tin concentrate production of 960t for the year to end-Feb (FY23), up from 804t in the previous period. Contained tin production also rose to 586t (FY22: 496t) while AISC improved to $US24,939/t ($27,515/t).
The company forecasts a significant increased in concentrate production to 1,400-1,500t at $25,000-30,000/t in FY24, due to the plant expansion ramp-up.
Andrada plans to post guidance on lithium and tantalum revenues following the commissioning of the project’s lithium pilot plant and tantalum circuit.