News

Chalice Mining expanded its Gonneville critical minerals project in Western Australia through successful drilling. The Tim Goyder-backed miner discovered wide zones of high-grade copper and platinum group elements, extending the deposit to the north-west. Key results outside the current resource boundaries include:

1. 8.0m intercept at 5.83 g/t 3E (platinum, palladium, gold), 0.15% Ni, 1.12% Cu, 0.01% Co from 543m depth.
2. 14.0m intercept at 5.72g/t 3E, 0.19% Ni, 0.36% Cu, 0.02% Co from 1096m depth.
3. 16.0m intercept at 6.17g/t 3E, 0.21% Ni, 0.15% Cu, 0.02% Co from 478m depth.

The resource model is being updated, expected in Q1 2024. Chalice aims to improve feed grades for higher metallurgical recoveries. Gonneville, Australia's second-largest nickel sulphide deposit, is set for commercial production by 2029, producing green energy metals. Chalice plans to concentrate platinum group metals and copper into a copper concentrate with 25% copper content and 100-150 g/t platinum group elements.

Liontown Resources has successfully concluded the share purchase plan (SPP) introduced on October 19, aiming to fully finance the Kathleen Valley lithium project in Western Australia.

The SPP offered shares at a price of $1.47 each, representing a two percent discount compared to the five-day volume-weighted average price of Liontown shares leading up to and including the SPP closing date of November 20, rounded to the nearest cent.

Designed to raise up to an additional $45 million at a price matching the lower end of the placement offer price, the SPP saw the issuance of over nine million new Liontown shares on November 27. These newly issued shares are anticipated to be listed on the Australian Securities Exchange (ASX) on November 28.

Subscriptions from eligible shareholders in the SPP totaled $13.8 million. Liontown's Managing Director and Chief Executive Officer, Tony Ottaviano, expressed gratitude, stating, "On behalf of the board, we are pleased to have provided eligible shareholders the opportunity to participate in the SPP following the institutional placement, and I would like to thank shareholders for the ongoing support they have shown the company."

Ottaviano further emphasized that the funds raised through the SPP complement the proceeds from the $365 million institutional placement completed in October. This funding package ensures the financial requirements for the Kathleen Valley project from its current stage through to initial production and beyond.

The successful conclusion of the SPP follows recent developments at Kathleen Valley, including Sandvik's announcement to supply automated loaders, underground drills, and rock tools. Additionally, crucial components for the project's key wind turbines have arrived at Kathleen Valley, and underground mining has commenced with the initiation of the first blast to create underground portals at the Mount Mann pit.

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Recent drilling at De Grey's Hemi gold project in Western Australia is unveiling promising prospects for the project's expansion, both in open-pit development and potential underground mining. Focus has centered on the Diucon-Eagle open pits, revealing significant mineralization during recent exploration at Eagle and Diucon sites.

The findings suggest considerable potential for expanding the Diucon-Eagle open pit shell. Extensions below the Eagle pit and shallower Diucon areas display impressive mineralization, with drilling uncovering extensions at least 250 meters down plunge to the west and over 300 meters down dip beneath the current Eagle pit plan.

Phil Tornatora, De Grey's general manager, expresses optimism about the project's potential, noting that the discovered extensions could substantially enlarge the current open pit shell outline. Furthermore, the results hint at the feasibility of future underground mining, prompting additional conceptual studies.

Ongoing reverse circulation drilling at Hemi, particularly along the Diucon Thrust north of Crow and extending towards Scooby, aims to identify additional shallow resources contributing to the project's overall resource base. While further drill holes are pending, 10 completed diamond holes await assay results, with many intersecting significant zones of visible mineralization, indicating the project's mineral wealth.

The extensive Eagle mineralized intrusion, spanning over 1000 meters in strike and approximately 200 meters in true thickness, reaching depths of at least 600 meters, underscores the project's potential. Encouraging intercepts from lodes in the hanging wall of the Diucon Thrust highlight its strong influence on mineralization in the Hemi area. These ongoing exploration activities signal a positive outlook for the continued development and potential expansion of the Diucon-Eagle open pits, solidifying the project's significance in the region's gold mining landscape.

St. Barbara has unveiled its FY24 outlook report, focusing on its Atlantic and Simberi operations. The company has committed $8 million to the Atlantic growth strategy, with an additional $13-15 million to be invested by FY24's end. The major allocation is for the 15-Mile project in Nova Scotia. St. Barbara plans to provide updates on Beaver Dam mineral resources and conduct drill testing at Cochrane Hill in Q3 and Q4. For the Simberi growth strategy, a capital investment of $10-13 million is expected, funding resource definition drilling and optimization studies. The company holds a $236 million cash balance as of Q1 September FY24, including $47 million for the Touquoy mine reclamation bond. Interest income for FY24 is estimated at $3-5 million.

In the concluding quarter of September 2023, Northern Star Resources found itself in a robust position to achieve its ambitious 2024 financial year (FY24) objectives, which encompass selling a substantial 1.6 to 1.75 million ounces (oz) of gold at a competitive all-in-sustaining cost (AISC) ranging from $1730 to $1790 per ounce. Notable operational accomplishments were recorded during this period, with a remarkable lost time injury frequency rate of just 0.8 injuries per million hours worked.

Stuart Tonkin, the Managing Director of Northern Star, expressed his confidence, stating that the successful execution of major planned shutdowns across their three production centers paved the way for the company to realize its full-year goals, which are heavily weighted toward the second half of the year (2H).

The quarter also witnessed strong gold sales, totaling 369,000 ounces at an AISC of $1939/oz and an all-in cost of $2748/oz. Critical projects, such as the Kalgoorlie Consolidated Gold Mines (KCGM) mill expansion and the impressive performance of Thunderbox operations in Western Australia, further underscored the company's commitment to excellence.

Northern Star's focus on operational excellence paid off, as they generated substantial underlying free cash flow from their operations. As the quarter concluded, the company boasted net cash reserves of $285 million, alongside a substantial $1.1 billion in cash and bullion, ensuring a formidable liquidity position of $2.2 billion.

In September 2023, Capricorn Metals provided a promising exploration update. Their focus was primarily on the Mount Gibson gold project in Western Australia's Murchison region. They completed 12,386 meters of resource definition and extensional drilling via reverse circulation (RC). Notably, this continued the work initiated in January 2022.

The results for this quarter were exceptional, with 107 drillholes (18,242 meters) assayed since the last update. A significant discovery was the Comanche prospect east of the main Mount Gibson trend, featuring encouraging results such as 12 meters at 3.73 grams per tonne (g/t) from 94 meters and 2 meters at 5.00 g/t from 136 meters. The Lexington, Saratoga, and Orion North areas also saw drilling, revealing zones of high-grade mineralization both within and outside the resource shell.

Capricorn Metals is gearing up to announce updated mineral resource and ore reserve estimates for Mount Gibson in December 2023.

Over at the Karlawinda gold project in the Pilbara region, they conducted drilling at the Vedas and Belhaven prospects. These programs targeted gold and geophysical trends in the eastern part of the Berwick and Muirfield deposits within the Karlawinda east project area, and results are currently pending.

However, results were received from a 25-hole (5,454 meters) infill and extensional RC drilling program conducted in the June 2023 quarter over the Berwick and Vedas prospects. One noteworthy result was 7 meters at 1.89 g/t from 130 meters.

Capricorn Metals sees potential in the Karlawinda east project area due to recent exploration success and its proximity to existing operations. They believe this area holds promise for near-surface satellite resources and significant gold discoveries.

September 2023, Red 5 celebrated a significant milestone, producing 55,009 ounces of gold from the King of the Hills (KOTH) project. This achievement positions them well to reach the upper end of their 2023–24 FY production target of 195,000–215,000 ounces, with all-in sustaining costs (AISC) ranging from $1850 to $2100 per ounce and growth capital between $40 million and $46 million.

During the same period, they achieved an AISC of $1696/oz, slightly lower than the previous quarter's 61,705 ounces. Gold sales totaled 54,383 ounces, generating $43.8 million in operating cash flows. This allowed Red 5 to make significant debt repayments, reducing their net debt to $68.2 million as of September 30.

Additionally, the company updated its mineral resource and ore reserve statement, revealing a group mineral resource estimate of 6.2 million ounces (Moz) and an ore reserve estimate of 2.6Moz of contained gold. The confidence in the KOTH project's resources is growing, evidenced by a substantial increase in measured and indicated resources.

Operational success continued, with the KOTH mill exceeding its nameplate capacity, processing up to 5.5Mtpa during extended periods in the quarter. Safety remained a priority, with a low recordable injury rate.

Furthermore, Red 5 underwent a board renewal process, making strategic appointments to enhance their executive team, preparing the company for continued growth and success.

Glencore has revealed its intention to shut down its copper operations at Mount Isa in Queensland by the conclusion of 2025. However, the company emphasized its commitment to keeping its various other metal assets operational.

Having operated for over six decades, the company managed to extend the life of its copper mine by an additional six years beyond its initial projected lifespan.

The closure will encompass all three copper mines within the Mount Isa facility – Enterprise, X41, and Black Rock – in addition to the copper concentrator.

On the contrary, other mining activities and operations at Mount Isa will continue, such as the copper smelter, the George Fisher mine, the zinc-lead concentrator, the lead smelter in Mount Isa, as well as the copper refinery in Townsville.

Glencore clarified that despite conducting multiple studies and reviews to potentially extend the underground copper mines' life, the confirmation of the end of their operational lifespan has been affirmed.

Furthermore, Glencore's Lady Loretta zinc mine, located approximately 140 kilometers northwest of Mount Isa, initially projected with a seven-year mine life for its finite orebody, will also halt operations in 2025.

Glencore Australia's zinc asset chief operating officer, Sam Strohmayr, acknowledged that this decision would be disheartening for their workforce, suppliers, and the Mount Isa community. Strohmayr emphasized the inevitability in the mining industry that mines have a definite lifecycle and that, regrettably, after 60 years of operation, Mount Isa's underground copper operations have reached that point.

To provide ample time for employees to plan their future, Glencore is notifying its workers and the community almost two years in advance of the closure of these mining assets. The company is dedicated to working closely with its employees, contractors, suppliers, and the Mount Isa community in the upcoming months to extend support during the transition towards the closure of these facilities.

Currently, Glencore's Mount Isa underground copper mines, copper concentrator, and supporting services employ approximately 1200 individuals.

Canadian mining company First Quantum Minerals has initiated a diamond drilling program at Boss Energy's Honeymoon uranium project in South Australia. The collaboration stems from an exploration earn-in agreement between Boss Energy and First Quantum Minerals in February 2022, covering base metals rights for five tenements at the Honeymoon project, which recently commenced mining operations. Boss Energy values First Quantum Minerals for their proven track record in discovering and developing deposits, deeming them an ideal partner for exploring and potentially developing base or precious metal findings at Honeymoon.

The drilling program will focus on basement-hosted base metal mineralization beneath the Yarramba Palaeovalley, targeting three high-priority locations identified through extensive data analysis. It involves a minimum of five diamond core holes totaling at least 1800 meters of drilling, executed by global drilling company DDH1. Geochemical assay results are expected within 1 to 2 months after program completion.

Boss Energy's Managing Director, Duncan Craib, sees this agreement as a prime opportunity for the company and its stakeholders. First Quantum Minerals has the option to earn a 51% interest in their collaboration by investing $6 million in exploration over five years and maintaining a minimum annual project expenditure of $500,000, potentially leading to a joint venture agreement between the two entities.

Widgie Nickel has issued an update regarding the ongoing infill drilling program for the 132N deposit resource. Assays from hole 23MERCD112 have described the findings as containing "remarkably high-grade nickel mineralization."

The 132N deposit is situated within mining lease M15/101, approximately six kilometers northwest of the Widgiemooltha township. This deposit is a vital component of the broader Mt Edwards project, which is positioned 75 kilometers south of Kalgoorlie and 40 kilometers southwest of Kambalda in Western Australia.

Previously, Widgie Nickel had revealed results from portable x-ray fluorescence (pXRF) readings conducted at the deposit.

Specifically, hole 23MERCD112 has yielded impressive results, with a notable intersection of 9.14 meters at 10.44 percent nickel (Ni), 0.75 percent copper (Cu), 0.13 percent cobalt (Co), and 1.93 grams per tonne (g/t) of platinum group elements (PGE) encountered from a depth of 330 meters. This intersection includes a subinterval of 2.61 meters at 18.88 percent Ni, 0.48 percent Cu, 0.23 percent Co, and 0.65g/t of PGE from a depth of 335.44 meters.

The company stated, "23MERCD112 was expedited for assay, while the rest of the 132N resource definition drilling program is presently undergoing processing, with assay results anticipated in October 2023."

Steve Norregaard, the Managing Director of Widgie Nickel, expressed his reaction to the findings, saying, "Widgie attracted significant attention this year with the core sample showcased at our Diggers (and Dealers) booth, and now we have compelling reasons for it. We are thrilled to present the assay results for 23MERCD112, which validate the portable XRF readings announced on August 11. This borehole, penetrating the lower zone of the existing 132N resource shape, unequivocally affirms the existence of exceptionally high-grade mineralization."

Earlier in the same week, Widgie Nickel had disclosed assay results from its recent diamond drilling infill program, which was specifically aimed at the Widgie 3 nickel mineralization system.