Australia's junior explorers - The ASIA Miner

July/August 2012 | Volume 9 | Issue 4 | Industry Technical Information | 矿业技术信息
STRENGTH IN MINING 开采强度
Focus on the Philippines Australian junior explorers Grinding mills 聚焦菲律宾 澳大利亚小型勘探企业 磨矿机

FEATURES
Australian junior explorers Australia’s junior mining companies are at the forefront of the global mining industry
owing to the fact that they ar e not only seeking to locate and pr ove new deposits in Australia but
their reach extends to Asia, Africa, South America and other parts of the world. Australia’ s juniors face
many challenges, not the least of which is securing capital in unpr edictable economic times. This special
feature looks at the work of a number of these juniors. ...................................................... From page 46
Paste thickening Operators, suppliers and researchers continue to pursue higher efficiency and reliability
in paste thickening applications. ..........................................................................................................59
Grinding mills Leading manufacturers offer perspectives on the market, evolving technology and the
future. ..................................................................................................................................................61
LEADING DEVELOPMENTS
Asian Intelligence On the surface it is difficult to see what benefits Indonesia’s new tax on unprocessed
ore exports can bring to the global mining industry. However, nickel may be one of the minerals that benefits
on a worldwide scale as it may boost depressed prices and increase pressure on supply. ..............5
Philippines Intex Resources has signed a Project Management Contract with China’s MCC8 Group
covering its Mindoro Nickel Project. MCC8 is now responsible for managing the formation of a consortium
to develop the project. ...........................................................................................................................7
Exploration Six new targets identified by a survey at Paramount Mining’s Gunung Rosa project are being
prepared for detailed exploration. ........................................................................................................72
AROUND THE REGION
Philippines Toledo Mining is assessing ways to extend its DSO shipping period. ...................................8
China Drilling at the Beiya project has extended the gold-silver and base metal zone. .........................16
Mongolia A pre-feasibility study has confirmed the Ovoot coal project is financially robust. ..................26
Indonesia The start of production at G-Resources’ Martabe Gold-Silver project is imminent. ..............28
Australia Nickel technology will be piloted at the Lucky Break project in Queensland. .........................32
Cambodia OZ Minerals has sold its Cambodian gold assets to Renaissance Minerals. ........................35
Papua New Guinea The maiden nickel estimate at Mambare has exceeded expectations. ..................36
Central Asia Premier Gold has started a new exploration program at the Cholokkaindy project. ..........38
Malaysia Exploration at the Sokor Gold Project has led to a 35% increase in resources. .....................40
India NSL Consolidated has sold its first iron ore ex-gate into the domestic market. ............................43
South Pacific Lion One Metals confirms exploration upside at Tuvatu Gold Project. ............................72
Despite global economic uncertainty, the mining industry
throughout Asia is strong, with the Philippines
a leading light. CGA Mining’s Masbate Gold Project
is one of the island nation’s success stories with production
through the pictured mill reaching record
levels and exploration continuing to boost resources,
thus replenishing mined ounces. The plant with 4
million tonne annual capacity was constructed by
Leighton Contractors Asia and CGA aims to increase
throughput to 6.5 million tonnes.
DEPARTMENTS
Photo courtesy CGA Mining.
Advertisers’ Index ......................................70
Calendar of Events ....................................44
From the Editor ............................................2
Product News ............................................64
Subscription Form ......................................70
Supplier News ............................................66
ENK focuses on Acoje .........................................6 Spotted Quoll performs well ................................32 Increase in Yandera resource ................................37
July/August 2012 | ASIA Miner | 1

From The Editor
Philippines mining finally ‘coming of age’
With foreign investment increasing, exploration providing impressive results,
several mining projects forging ahead, the economy expanding and
a number of its neighbours ‘shooting themselves in the feet’ with new
mining laws, the Philippines is starting to demonstrate the mining potential
it has been threatening to reveal for years. However, there is still work
to be done if the industry is to reach its full potential.
Good signs are there as the country recorded strong growth of 6.4% in
the first quarter, up from 4.9% in the corr esponding period of 2011. This
strong performance prompted an upward revision to the growth forecast by
By John Miller /Editor
Moody’s, which lifted 2012 forecasts for the Philippines to 4.7% fr om 4%.
Foreign direct investment is also reported to have increased by almost 154% to US$850 million in
the first two months of 2012. The W orld Economic Forum has also recognized the impact of key
reforms in its Global Enabling T rade Report, which indicated that the Philippines has made substantial
improvements in trade access, jumping 50 places to 14th out of 132 nations.
To reach the potential that has been talked about for years, some changes need to be implemented,
important decisions made at a government level and work done by the mining industry
to better sell itself to all Filipinos. The impasse with the Tampakan project needs to be resolved
as it does not promote investor confidence in the nation as a whole. Another hindrance is the
moratorium on new mines in place since January 2011 while the gover nment has also been
talking about following Australia’s ‘example’ and imposing further mining taxes.
There is some light at the end of the tunnel in the form of a systematic government review of
mining policy. According to Gavan Collery, the chairman of Indophil Resources, one of the partners
in Tampakan, the framework of the review is contained within six points - sustainable development;
best practice and gover nance; protection of the environment; primacy of national
law; sharing of benefits; and sound mining sector management.
“As a somewhat obvious observation,” he says, “this framework – save for implying r estoration
of investor confidence – is the basis for the type of responsible practice that one would care
to see applied in any jurisdiction in the world. The framework is one we support, and one we will
continue to advocate within the industry and all levels of government. Hopefully, its carriage and
adoption will see the Philippines’ mining industry contributing to a sound economic future; a future
that can in part be underpinned by development of Tampakan.
“While being cautious based on past experiences, it appears that mining policy in the Philippines
is coming of age, and will be based on sound process and system. A robust and invigorated
national mining policy will deliver nation-building benefit to the people and reward those who
embark on the considerable risk of minerals exploration and development.”
National resources development fund has merit
An emerging cash crisis for Australia’s junior explorers is threatening the long-term sustainability
of the country’s ‘mining boom’ as well as in other ar eas in which the juniors play a vital r ole
in identifying and proving new deposits, such as Asia, Africa and South America. A national resources
development fund paid for by a modest levy on established and pr ofitable mining operations,
and proposed by the managing director of Minotaur Exploration, Andrew Woskett, is
worthy of further investigation by decision makers. At the heart of the pr oposal is providing an
innovative source of access to capital exclusively for the backbone of Australia’s mining future
– the cash-starved junior end of the resources spectrum.
“There is nothing more serious right now confronting juniors than the complete absence of risk
capital available for explorers and small cap pr oject developers,” Andrew Woskett says. “The
consequences of capital starvation to the overall well-being of our so-called booming resources
sector is intensely serious and with negative global equities sentiment as it is, we need to be
more unconventional in resolving how we alleviate this funding gap. A national resources development
fund can fill that gap.”
2 | ASIA Miner | July/August 2012
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Asian Intelligence
4 | ASIA Miner | July/August 2012

AN interesting recent development for the
sluggish nickel industry has come in the form
of the Indonesian gover nment’s new tax on
unprocessed mineral ore exports, which may
boost prices and increase pressure on supply.
The new tax on the export of 14 types of
unprocessed minerals came into ef fect on
May 6 and has been intr oduced in a bid to
boost value-added products.
The minerals affected are gold, silver, platinum,
copper, lead, nickel, zinc, ir on ore
and sand iron, manganese, chromium, molybdenum,
bauxite and antimony. There has
been mixed response within Indonesia and
further afield with concern expressed that it
will affect miners’ revenue and significantly
affect profit margins.
There have certainly been mixed messages
about the impact on nickel with some companies
to benefit and others to be impacted
negatively. The government has made exceptions
for miners that alr eady have or plan to
New Indonesian tax may benefit nickel
build smelters. They will be taxed at an average
of 20% on ore exports.
Companies like Vale Indonesia, the country’s
biggest nickel miner, won’t be affected
because they process ore into refined products.
But other companies will be impacted,
including state-controlled Antam, which
obtains about 30% of its r evenue from ore
shipments. To process raw nickel, Antam
plans to build a $1.6 billion ferronickel smelter
in East Halmahera.
Some companies may end up holding back
ore shipments if the new levy makes mining
unprofitable and might focus on building
smelters instead. This could, in turn, lift nickel
prices and put pressure on supply. Kim Eng
Securities in Jakarta said in a note to clients
that the imposition of an export duty on mineral
ores would curb cheap nickel ore supply
and, in turn, stoke a nickel price rally.
China International Capital Corp also for ecasts
a boost in nickel prices but says large
EPA recommends approval for Wiluna
THE Western Australian Environmental Protection
Authority (EPA) has r ecommended
approval for Toro Energy’s Wiluna Uranium
Project. The EPA has presented a report and
recommendations to Western Australia’s Minister
for Environment. Toro is awaiting the
Minister’s decision following review of any appeals
that are raised.
The project was referred for assessment to
the Western Australian and Federal gover nments
in October 2009. An Environmental Review
and Management Program was exhibited
for public consultation over 14 weeks from July
2011 with 48 submissions made to the EP A.
Toro has provided comprehensive responses
to all submissions to enable the EPA to finalize
its assessment. A Federal Gover nment decision
on its assessment is anticipated after the
Western Australian process is finalized. Toro’s
Board will then target a final investment decision
by the end of 2012, subject to final market
and economic considerations.
“The EPA recommendation is an important
milestone for Toro and for the W estern Australian
uranium industry,” Toro’s managing
director Greg Hall says. “While the Toro team
members have significant experience within
other uranium and mining operations, Wiluna
is Toro’s first project and the first uranium project
to receive a positive EPA recommendation
in Western Australia since the change of
government in 2008. Toro is confident that its
extensive technical and environmental study
work and the rigorous assessment undertaken
by the EPA will ensure a safe and sustainable
mining operation. This project is one of
the few in the world potentially capable of
commencing production in the critical
2014/15 period when the nuclear industry will
be seeking additional supplies.”
Toro’s Wiluna project is about 520km north of Kalgoorlie
in central Western Australia. It comprises uranium in the
Centipede and Lake Way deposits.
Asian Intelligence
By The ASIA Miner editor, John Miller
stockpiles in China will limit short-term impacts
of any supply shortfall. It says the tax
is expected to add 7.5% to average production
costs of nickel pig ir on in China, improving
incentives to use refined nickel at current
price levels. About 60% of China’ s pig iron
output, which accounts for 60% of the nation’s
nickel production, relied on Indonesian
laterite ores last year.
In a research note, analysts at Citi said the
outlook for nickel was ‘significantly mor e
positive’ thanks to Indonesia’s moves. “Expectations
of reductions in exports range
from 20% per cent to 75% by the fourth
quarter of 2012.
The Philippines might also pick up any
slack in shipments caused by the ban. A
Mines and Geosciences Bureau official said
recently that nickel-ore production and exports
from the Philippines may rise this year,
benefiting from Indonesia’s ban. Australia is
another country that could benefit.
Lynas has LAMP appeal dismissed
AN appeal lodged under the Atomic Energy
Licensing Act in relation to the decision
of the Malaysian Atomic Energy
Licensing Board to approve the issuance
of a temporary operating licence (TOL) for
the Lynas Advanced Materials Plant
(LAMP), has been dismissed.
In dismissing the appeal, the Minister of
Innovation, Science and Technology, YB
Dato’ Seri Panglima Dr Maximus Johnity
Ongkil affirmed the February 1, 2012 decision
of the Boar d to appr ove the issuance
of the TOL. L ynas has r eadily
available solutions to satisfy the new conditions
announced by the Minister . The
next step will be the tabling and debate of
the Parliamentary Select Committee’s Report.
Lynas looks forward to completion of
the regulatory and political pr ocesses in
Malaysia as soon as possible.
“The decision by the Minister is the
latest in a long line of rulings and approvals
where Lynas has been assessed
and judged to have complied
with Malaysian and international regulatory
standards,” says Lynas executive
chairman Nicholas Curtis.
July/August 2012 | ASIA Miner | 5

Philippines
ENK focuses entirely on Acoje project
Laterite direct shipping ore (DSO) mining operations at ENK’s Acoje Nickel Project on Luzon.
RATIONALIZATION of its portfolio during the
last 12 months has put nickel gr oup ENK in
a strong position to advance its flagship
Acoje Nickel Project on Luzon island. The
sales of a number of pr ojects in Turkey and
the Philippines and the repayment of loans by
its local partner has put ENK in a str ong financial
position as Acoje moves into the key
stages of development.
The company expects to publish a bankable
MARCVENTURES Holdings expects to more
than double nickel shipments from its project
in Surigao del Sur on Mindanao this year compared
to 2011. A study by First Metro Investment
Corp says the company can make 18
shipments or 1 million wet metric tons (WMT)
of combined low-grade (1% per tonne of or e
with iron content of 48%) and high grade nikkel
ore (1.8% per tonne of ore) this year.
It is estimated that in 2011 Marcventures, a
holding company listed on the Philippine
Stock Exchange, shipped mor e than
550,000 WMT of pr edominantly low-grade
nickel ore, which was the first to be extracted
based on the company’s mining strategy over
an open pit mine of 15 hectares. It is involved
in nickel mining operations through its subsi-
6 | ASIA Miner |July/August 2012
feasibility study for the pr oject in September,
which is expected to lead to ear nest discussions
about how to move Acoje fr om development
into pr oduction. ENK is hopeful of
beginning production in late 2013 or early 2014.
Last year ENK sold its Caldag pr oject in
Turkey for US$40 million and this year has
sold its interest in Berong Nickel Corporation
and Toledo Mining Corporation, both with
Philippines projects, for US$7.25 million.
Marcventures increases nickel shipments
diary - Marcventures Mining & Development
Corporation (MMDC).
The area covered by MMDC’s Mineral Production
Sharing Agreement is at Cantilan in
the Diwata mountain range of Surigao del Sur
and covers 4799 hectar es. The company
started mining last year and is undertaking
ongoing exploration activities adjacent to the
open pit and in other parts of the licence
area. Shipments to China are made from the
company’s causeway at Carrascal.
The operating mine is part of an area of just
120 hectares that has been explored with resource
and reserve estimates of 22.6 million
WMT and 11.6 million WMT, respectively, and
with nickel ore average grade of 1.5%, compliant
with the Philippine standards.
ENK’s local partner Montemina Resour ces
will also be paying back its loans totalling
US$11 million through the sale of a 60% interest
to Golden Harvest Global Corporation.
Acoje is expected to be developed over
two stages with a focus on the higher grade
ore first to reduce the upfront capital costs.
The first stage will see annual thr oughput of
1.5 million tonnes of or e, producing about
15,000 tonnes of nickel. Production schedules
in early years will also be optimized to take
advantage of higher nickel feed grades to
realize higher revenues.
The proposed sulphuric acid plant will only
be built during stage two, greatly reducing initial
project capital requirements. In year five,
the plant will be expanded to an annual rate
of 24,000 tonnes over a 20 year life of mine,
making ENK a sizeable global producer.
ENK has already decided to use tank leaching
rather than traditional heap leaching to
process the ore. Costings for this process will
be keenly scrutinized by the nickel industry as
ENK will be one of the first miners to use atmospheric
leaching at a nickel laterite project.
ENK’s managing director Rob Gregory says
traditional heap leaching would have worked,
but because of the heavy rainfall in the Philippines
it would have been mor e difficult to
manage. He says the equatorial laterites that
make up the or e at Acoje ar e also better
suited to tank leaching.
First Metro Investment Corp said earlier this
year that company’s 2012 earnings growth
would be driven by higher daily tonnage, likely
to be 6600 WMT over 150 days of operations
in 2012, and a slight revival in LME nickel prices
to around $21,500 per tonne or an equivalent
selling price of $56 per tonne for
Marcventures under its 3-year, 3 million tonne
nickel ore forward sales contract with Dun
Feng International. Dun Feng is one of the largest
buyers of nickel ore in China.
In an industry report about nickel, a global
financial services consultancy firm says that
nickel pig iron (NPI), a Chinese invention, has
gained wide acceptability as a substitute for
primary nickel as a raw material for stainless
steel manufacturers.

Intex is involved in the provision of water around the
Mindoro Nickel Project.
INTEX Resources has signed a Pr oject Management
Contract (PMC) with China’s MCC8
Group Co Ltd covering its Mindoro Nickel Project.
The contract means that MCC8 is responsible
for managing the formation of a
consortium to develop the project, including arranging
project financing, identifying pr oject
operator, evaluating EPCM contract options
and, if appropriate, bringing in off-takers.
An MoU was originally signed in January and
this was converted to a PMC in May. Since January,
Intex and MCC8 have worked diligently
to identify potential investors, financiers, of-takers
and operators. One of the results was that
on April 17 Intex, thr ough the introduction of
MCC8, received a proposal from CITIC-GEM
Fund offering 800 million Norwegian kr one in
equity financing, which is assumed to be the
major part, or all of the equity needed for the
realization of phase one of the project.
CITIC-GEM Fund is a part of the CITIC
MINDORO Resources is restructuring its Philippines
assets so that it can concentrate on the
Agata Nickel Project. The company is spinning
out its key gold and copper-gold assets - the
Batangas gold pr ojects including Ar changel
and Lobo, and the Tapian San Francisco (TSF)
copper-gold properties near Surigao - into
ASX-listed Red Mountain Mining.
The consideration for the sale is shar es in
Red Mountain payable to Mindor o in two
tranches. The first tranche involves 100 million
initially non-voting shar es at Aus$0.10
per share on completion of the transaction
and the second involves 50 million ‘perfor -
mance shares’ at Aus$0.10 per share to convert
to non-voting shar es based on
Intex signs contract for Mindoro management
An Intex employee plants an acacia seedling as part of
the CSR program.
Group Corporation, a leading China Stateowned
multinational conglomerate. Its financial
business covers a full range of services
including commercial banking, investment
banking, trust, insurance, fund management
and asset management.
MCC8 is a major Chinese state-contr olled
engineering and construction company, and
is a former part of China’s largest nickel producer,
Jinchuan Group. The company develops,
and forms Chinese consortia that
undertake project finance, plant engineering
and construction (EPCM), mine operation
and equity investments. MCC8 possess a
50-year history of construction and completion
of more than 80 non-ferrous metallurgical
plants, including the construction of China’ s
Nickel City in Jinchang.
Intex says planning of the amended feasibility
study for a staged development of Mindoro is
expected to be completed by the end of the
Philippines
Intex employees and local community members involved
in environmental work.
year and the initial financing under the PMC to
cover the DFS costs is expected to be in place
within the same period. It is understood that
MCC8’s deep understanding of nickel production
operations could reduce the CAPEX of MN
significantly. MCC8 will modify the feasibility
studies and undertake preliminary design with
the assistance of Intex.
Intex believes MCC8’s experience in numerous
mining and envir onmental projects in
Asia; Europe and Africa will provide credibility
in coordinating the political, financial and
technical aspects of the pr oject into a streamlined
development strategy.
Under the PCM the consortium will have
the first right of r efusal/option to buy up to
90% of Mindoro Nickel in a staged pr ocess
for US$296 million linked to specific milestones.
Full payment of the US$296 million will
take place befor e construction can start.
Construction is estimated to start in 2015.
Mindoro to spin out copper-gold assets
upgrading the Batangas indicated r esource
to 600,000 ounces of gold and completing a
scoping study that demonstrates a viable
gold project based on more than 50% of the
indicated resource within 12 months of completing
the transaction.
Mindoro’s president and CEO Jon Dugdale
says, “The separation of the key gold
and copper-gold assets of the company
from the advanced Agata Nickel Project provides
the opportunity for optimal value recognition
of these assets in today’ s equity
marketplace. This is why the Board and management
of Mindoro supports this proposed
spin-out of the Batangas and TSF gold
and copper-gold projects into the gold mi-
ning and exploration focused Red Mountain.
Red Mountain’s mining expertise and funding
with the Mindor o team’s exploration
and community engagement track r ecord,
is a great combination.”
As part of the transaction Red Mountain will
provide a secured draw-down facility for up
to Aus$1 million to enable Mindor o to commence
drilling, focused on delineating the
high-grade feeder structures below the Kay
Tanda resource at Archangel, Batangas.
Agata includes a 42 million tonne @ 1.01%
nickel measured and indicated resource for
430,000 tonnes of nickel, and a 35.4 million
tonne @ 1.03% nickel pr oved and probable
reserve for 365,000 tonnes.
July/August 2012 | ASIA Miner | 7

Philippines
Toledo assesses Berong improvements
TOLEDO Mining Corporation is investigating
ways to extend the curr ently restrained shipping
period of its direct shipping ore (DSO) nikkel
from the Berong joint venture project on
Palawan, is assessing a possible value-added
strategy and is improving the port area. These
measures are aimed at improving revenue at
a time when the JV is targeting annual production
of 750,000 wet metric tons (WMT) @
1.8% nickel from the end of this year.
An engineering company is evaluating the
constraints of the shipping window which
sees shipments halted during the monsoon
season. AIM-listed Toledo hopes to extend
the shipping window and increase annual capacity
to 1 million WMT. If this is not possible
the company believes the non-shipping period
presents an opportunity to build a stockpile
of ‘r eady-to-go’ 1.8% or e. At pr esent
Toledo ships its ore to China but also believes
it may be prudent to investigate value-added
opportunities to find the most suitable pr ocess
for the ore, generating more cashflow.
At its port, Toledo plans to extend the causeway
to achieve better ship loading ef ficiency
with the first phase of the extension
agreed at a budget of US$314,000. This will
extend the existing pier by about 30 metr es
seaward, creating a deeper loading draft
which should provide more stable barge-loading
conditions even during moderate swell.
While the pier extension may not necessarily
prolong the shipping period, it will greatly en-
METALS Exploration is making steady pr ogress
on development of the Runruno Gold
Project with the early works pr ogram reaching
design activity levels and work under
way on multiple facets of the pr oject. The
company is also making progress with a debt
funding package to support the full development
of Runruno with legal documentation
advanced and finalization expected shortly.
The earthworks are at an advanced stage
with the camp site, batch plant and lay-down
area completed, two causeways established
across the Sulong River to facilitate access to
the processing plant site and the pr ocessing
plant earthworks nearing completion. Work is
continuing on construction of the camp and of-
8 | ASIA Miner |July/August 2012
hance the loading throughput.
Berong has a JORC-compliant resource of
9.13 million tonnes @ 1.55% nickel and a potential
resource of 120 million tonnes @
1.34% nickel. The nearby Long Point and
Moorsom projects have a potential resource
of 120 million tonnes @ 1.27% nickel. During
the first quarter of 2012 production of run-ofmine
ore from Berong was 183,000 WMT at
an average grade of 1.88%. DSO operations
resumed in early Mar ch when the shipping
window reopened with shipments of 48,700
WMT @ 1.82% and 54,000 WMT @ 1.63%
carried out during March. Another three shipments
of 55,603, 48,315 and 40,845 WMT
were made in subsequent weeks.
The Berong operation is held by Ber ong
Nickel Corporation, a joint ventur e between
Toledo, Atlas Consolidated Mining and Deve-
fice complexes, and on the pioneering work to
establish the road into the pit with the material
extracted being used as fill on both the laydown
and processing plant site areas.
Leighton Contractors Asia have been contracted
to design and construct the pr ocessing
plant at a guaranteed maximum of
US$91.5 million out of a total capital cost for
the entire project of US$167.8 million.
Leighton reports that it is pr oceeding well
with the processing plant detailed engineering
program.
Other aspects of the early stage works program
include provision of construction power,
provision of potable water, erection of a concrete
batching plant and acquisition of selec-
lopment and World Fund Pte Ltd, which r ecently
purchased ENK’s 18.7% stake.
Owing to a delay in the granting of a new
tree cutting permit, the Berong mine has a limited
mining area which is impacting on the
amount of high grade ore that can be produced.
This forced the joint venture to revise the
ore sales plan from a single 1.8% grade to a
combination of 1.8%, 1.6% and 1.5% grade
shipments in order to maximize revenue until
a new permit is granted.
Toledo is also seeking other potential buyers
for its 40% stake in the Ipilan nickel operation
after it received a draft share purchase
agreement from Chinese gr oup Jinchuan,
which contained terms that the company ,
along with its JV partners, thought wer e
wholly unacceptable. The exclusivity granted
to Jinchuan in the MoU has expired.
Loading direct shipping ore from Toledo Mining’s Berong Nickel Project on Palawan island.
Steady progress on early Runruno development
ted units of the mobile fleet.
Metals Ex executive chairman Ian Holzberger
says, “It is very satisfying to see the progress
being made on the ground at Runruno
as the early works program ramps up and the
work commences on multiple facets of the
project. This work demonstrates the company’s
capacity to implement the Runruno project
and is crystallising the size and scope of
the project to its stakeholders. Equally it is
pleasing to see the pr ogress made with the
processing plant detailed engineering pakkage
under Leighton’s management. This
work will support the early commencement
of the processing plant construction once full
funding is available.”

Philippines
10 | ASIA Miner |July/August 2012

DRILLING by CGA Mining has resulted in an
updated resource and reserve estimate that
replaces all ounces mined at Masbate Gold
Project. Total measured and indicated resources
have increased contained gold by 12.7%
to 5.13 million ounces compar ed with 4.55
million ounces reported in the last release of
a NI 43-101 compliant r esource. After allowing
for ounces depleted from mining since
the last resource release, this represents an
increase of 1.06 million ounces or 23.3%.
The deposit also contains an estimated in -
ferred mineral resource containing 2.83 million
ounces compared with 3.22 million ounces reported
in the last resource release. The reduction
is associated with mining depletion and
conversion to the measured and indicated categories.
The updated estimates are based on
drilling completed to the end of June 2011,
which represents only the addition of about
42,000 metres of new drilling. Drilling continues
within and adjacent to the current mineralization,
with intercepts subsequent to the
preparation of this model showing potential to
upgrade mineral classification and further increase
the total resources.
The update covers a geographic ar ea
slightly larger than the earlier estimate and includes
resources for the Old Lady deposit reported
for the first time. It does not include
resources for the Pajo prospect as drilling at
this location commenced after the cut-of f
date for inclusion in the updated estimate.
As of October 31, 2011, the total pr oven
and probable reserves estimation has increased
to contain 3.097 million ounces compared
to 3.02 million ounces r eported in the
BROKER Fairfax has increased its price target
for Medusa Mining and says that the curr ent
market represents a golden opportunity to buy
into the stock. It has impr oved its forecasts
owing to an expected reduction in cash costs
at Medusa’s flagship Co-O Gold Project as well
as an increase in production during 2012.
Fairfax analyst John Meyer says exploration
at the Co-O mine continues to pr ogress and
that the JORC resource should continue to expand
to replace ounces that have been unearthed
and to extend the overall resource to more
than 2 million ounces, up from 1.96 million. He
says the r ecent Bananghilig gold discovery ,
where production is targeted for 2016, should
also extend to more than 1 million ounces although
mine planning will be for a potential
200,000 ounce per annum operation for a five
year mine life at a $550 per ounce cash cost.
In terms of copper, John Meyer says the
Medusa team is working to pr ove up a significant
body of mineralization with a view
to selling its copper portfolio.
“Medusa is a relatively safe gold stock with
Philippines
CGA replaces ounces mined at Masbate
previous reserve estimate. This represents an
overall increase of 455,000 ounces or 17.2%
from the previous estimate after allowing for
production of 378,000 ounces.
Since the drilling cut-off date a further 60,600
metres of exploration drilling has been completed.
Further updates to the r eserve and r esource
estimates are planned to be completed
on an annual basis, with the next drilling cut-of
date June 30, 2012. The exploration team r emains
confident, given CGA ’s demonstrated
commitment to incr ease exploration activity,
that the ability to further gr ow the reserve and
resource base of the project is strong.
CGA achieved record monthly production of
20,007 ounces of gold in May , eclipsing the
previous record of 18,318 ounces in December
2010. The record came from processing
a record of 642,816 tonnes, with the previous
record being 605,330 tonnes in May 2011, at
1.15 grams/tonne gold head grade and an
average hourly throughput rate of 919 tonnes.
Since the SAG mill was br ought back into
production in late December 2011,
throughput has averaged 802 tonnes/hour
with an availability of 93%.
A gold pour at CGA Mining’s Masbate Gold Project. The project achieved record monthly production of 20,007
ounces during May.
Broker says Medusa is ‘golden’ opportunity
a strong cash and gold balance and relatively
well set gold production growth from here. It
is consistently mining and pr ocessing high
grade gold material from the Co-O gold mine,
which is highly cash generative and its expansion
to an annual 200,000 ounces is largely
compete. We view the current market as a
‘golden’ opportunity to buy into Medusa Mining
stock as gold production rates improve.”
Medusa says that it is on a growth path to
annual production of 400,000 ounces by the
end of 2015 or early 2016.
July/August 2012 | ASIA Miner | 11

Philippines
Policy review provides hope for Tampakan
INDOPHIL Resources believes a systematic
review of mining policy by the Philippine Government
provides some light at the end of
the tunnel for the T ampakan Copper-Gold
Project. The project is owned by Sagittarius
Mines, a joint venture company with Xstrata
Copper and Indophil as major shareholders.
Development at the project that is estimated
to contain 15 million tonnes of copper and almost
18 million ounces of gold, was hampered
by a provincial government ban on open pit mining
in South Cotabato, the province in which
Tampakan is located, that took ef fect in October
2010. As well as impacting the companies
involved, the ban has had an adverse
effect on investor confidence in the Philippines.
Indophil’s chairman Gavan Collery says the
company was comforted at the time the mining
ban was announced by assurances from
the Philippine Government that such a ban
was illegal - that it was contrary to national
law - but it is still in place. “To add further uncertainty,
in early 2012 the Of fice of the Secretary
of the Department of Envir onment
and Natural Resour ces (DENR) r eturned
Tampakan’s application for appr oval of the
Environmental Impact Statement for the mine
area. This approval, known locally as an Environmental
Compliance Certificate or an
ECC, was conditionally denied and made
subject to resolution of the open pit ban.”
An appeal by Xstrata to reconsider the ECC
has recently been tur ned down with the
DENR re-stating that the matter is dependent
on the resolution of the conflict between national
mining policy and the envir onmental
code in South Cotabato.
Gavan Collery says the framework of the
Gold Fields boosts Far South East interest
GOLD Fields intends to incr ease its interest
in the Far South East Gold Project on Luzon
to up to 60% as part of a strategy to diversify
risk away fr om South Africa. An initial r esource
estimate for the pr oject is expected
during the second half of this year at which
time a pre-feasibility study will be started. An
indicative timeline shows that a mine could
be constructed during 2015-16.
Gold Fields has a strategy to have 5 million
ounces of gold either in pr oduction or under
12 | ASIA Miner |July/August 2012
The Tampakan project of Sagittarius Mines is in southern Mindanao. Major Sagittarius stakeholders are Xstrata
Copper and Indophil Resources.
mining policy review is understood to be contained
within six points, covering sustainable
development; best practice and governance;
protection of the environment; primacy of national
law; sharing of benefits; and sound mining
sector management.
“This framework – save for implying ‘restoration
of investor confidence’ – is the basis
for the type of responsible practice that one
would care to see applied in any jurisdiction
in the world. The framework is one that we
support, and one that we will continue to advocate
within the industry and within all levels
of government. Hopefully, its carriage and adoption
will see the mining industry in the Philippines
contributing to a sound economic
future; a future that can in part be underpinned
by development of Tampakan.
“While being understandably cautious
development by 2015, with South Africa making
up 40% of that, contributing 2 million ounces.
It plans to have 1 million ounces fr om
each of the three regions in which it operates
- West Africa, South America and Australasia.
The company is buying up to 60% of the
Far South East pr oject from the existing
owners for a total payment of $340 million. In
September 2010 it reached an agreement to
buy the stake from Lepanto Consolidated Mining,
the 60% owner of Far South East, and
based on past experiences, it appears that
mining policy in the Philippines is coming of
age, and will be based on sound process and
system. A robust and invigorated national mining
policy will deliver nation-building benefit
to the people of the Philippines and r eward
those who embark on the considerable risk
of minerals exploration and development.”
He says, “Re-affirmation and enforcement of
the issue of primacy of national laws over local
government ordinances, such as the ban on
open pit mining in South Cotabato, is critical to
any decision to proceed with the near-$6 billion
development of Tampakan. The mor e than
US$400 million already invested on the Tampakan
study programs, legislated government
payments, community development and related
project expenditure is a clear demonstration
of the joint venturers’ commitment.”
Liberty Express Assets, the 40% holder . In
March this year, Gold Fields brought forward
a payment of $110 million to raise its stake to
40% in the project. The early exercise of the
option to buy the Liberty stake does not afect
the option to buy a further 20% stake for $110
million from Lepanto, which will r emain Gold
Fields’ partner in the project.
Gold Fields plans to mine an unexploited
ore body below a mine that is near the end
of its life.

St Augustine starts King-king permitting process
ST AUGUSTINE Gold & Copper has started
the process of permitting of the King-king
Copper-Gold Project in the southeast of the
island of Mindanao by completing and submitting
the Declaration of Mine Project Feasibility
(DMPF). King-king is one of the largest undeveloped
copper-gold deposits in the world
with a measur ed and indicated mineral r esource
of 5.4 billion pounds of contained copper
and 10.3 million ounces of contained gold.
The project, which is listed as one of the top
priority projects by the Philippine Mines and
Geosciences Bureau, also has an inferred resource
of 188.8 million tonnes @ 0.215%
total copper, 0.048% soluble copper and
0.265 grams/tonne gold. It is 35km east of
Davao City, 13km from the coast, has a low
strip ratio (0.8:1) and is at an advanced stage
with 95,651 metres of drilling composed of
291 core and reverse circulation holes, including
6052 metres of new drilling composed
of 14 core holes (and 1 RC) in 2011.
The company’s Philippines partner, Nation-
INITIAL drilling as well as the extensive and
intense skarn alteration that extends for more
than 700 metres along strike have pr ovided
Mining Group with further indications that the
Tagpura/Bayag Bayag prospects at its Comval
Copper-Gold Project have the potential to
host a significant copper ore body. Assay results
from the first of eight holes into Bayag
Bayag target have provided results that support
extensive drilling.
The initial hole inter cepted more than 100
metres of variably skarn altered limestone consisting
of massive gar net, pyroxene, epidote
pyrrhotite and visible copper mineralization as
chalcopyrite. The assays include 44 metres @
0.64% copper from 39 metres, including 28
metres @ 0.88% copper from 55 metres.
Three holes have been drilled at Bayag
Bayag with another thr ee being drilled. The
company has a total of eight holes planned in
the initial drilling program at Bayag Bayag in
order to test the overall width and strike extent
of this mineralization. This will be done in conjunction
with ground magnetic surveyingl.
The onsite exploration team has mapped
surface mineralization consisting of skarn al-
wide Development Corporation (NADECOR),
as party to the Mineral Pr oduction Sharing
Agreement with the Philippine Gover nment,
has submitted the DMPF to the Department
of Environment and Natural Resources and
the Mines and Geosciences Bur eau for review
and approval.
The DMPF is a r egulatory requirement that
includes 20 plans, certifications and other documents
required to obtain approval from the
Philippine government to develop King-king.
This submittal begins the permitting pr ocess
and represents an important milestone. NADE-
COR’s and St Augustine’s mutual commitment
to development of the project in a manner that
is protective of health, safety and the environment
was incorporated into the DMPF.
NADECOR is in the process of resolving internal
issues within its boar d of directors, however
these issues did not impact submission
of the DMPF. Also, while some delay in the issuance
of deliverables due to St Augustine by
NADECOR has occurred as a result, the com-
pany understands that NADECOR’ s board
members and key shar eholders are working
toward resolution of these issues. Company
management is communicating constantly
with its partner to ensur e the interests of the
company and the project are protected.
St Augustine’s CEO Andrew J Russell says,
“The company has invested mor e than $70
million in the project and the DMPF to date.
The next steps are the completion of a pr efeasibility
study and following that, a bankable
feasibility study (BFS). The BFS is targeted for
completion later this year to coincide with anticipated
receipt of approved permits.
On June 1 St Augustine Services Inc, a
subsidiary of St Augustine, signed a Memorandum
of Agr eement with the T echnical
Education and Skills Development Authority
(TESDA) of the Philippines, the first such
agreement for a mining company. TESDA will
facilitate and participate in the conduct of
workforce training for the King-king pr oject
through construction and operation.
Promising indications from Comval project
teration and gossans, with this potentially mineralized
zone being identified over 700 metres
of strike length. The nature and extent of
the alteration mineral assemblage indicates
that the mineralizing system is large and par-
The pit and workings at Mining Group’s Tagpura prospect on the Comval project.
allels can be drawn with many skarn/copper
porphyry systems around the world. Skar n
alteration is a common tool for exploration of
larger porphyry mineralizing systems.
Mining Group’s managing director Andrew
Maurice says, “The initial assay r esults from
Bayag Bayag ar e encouraging, especially
Philippines
when combined with the assay r esults we
previously announced from the Tagpura and
Maangob targets. All of our targets are in relatively
close pr oximity, with Bayag Bayag
only 700 metres south of T agpura, further
supporting the potential economic viability of
the Comval copper/gold project.
“Perhaps the most significant featur e of
what we see at Bayag Bayag is evidence of
a widespread and intensive zoned alteration
system commonly associated with large copper/gold
porphyry systems.
July/August 2012 | ASIA Miner | 13

Philippines
Taysan PFS delivers positive results
A POSITIVE pre-feasibility study (PFS) for the
Taysan Copper-Gold Project supports the
proposal of Crazy Horse Resour ces to pursue
a trade sale or a joint ventur e of the
Luzon Island project. The PFS forecasts average
annual payable production of 76 million
pounds of copper, 30,000 ounces of gold,
93,000 ounces of silver and 476,000 tonnes
of magnetite over the 24 year mine life.
Average operating costs for the project are
estimated at US$1.68 per pound of copper
equivalent over the life of the mine and
US$1.18 per pound of copper equivalent during
the first five years of production. Initial capital
costs are estimated at US$502 million.
The PFS also determines that the project has
an estimated net present value at a 10% discount
rate of US$503 million and an inter nal
rate of return of 49.2%, both calculated on
after tax, post-financing cash flow including
metal by-products.
Since the release of the PFS Crazy Horse
has engaged the services of Regent Advisors
to advise the company as it seeks a potential
buyer or joint venture partner for the project.
Crazy Horse’s chairman and CEO Mitch Alland
says, “We are excited about the attractiveness
and the financial r obustness of
Taysan. The large measured and indicated resource
of 1.2 million tonnes of contained
copper will provide the basis for the stage 1
MARTINA Minerals has signed a binding Letter
of Intent with BlueCreek Mining, a Filipinoowned
company, to acquire a 40% interest in
two groups of gold pr ospective property
known as Boston and San Miguel in Eastern
Mindanao. Martina is a Canadian-listed company
focused on minerals exploration and
was formed from the merger of Compostela
Mining with Manor Global.
Boston is to the east of Mt Diwalwal, one of
the largest gold deposits in the Philippines,
which is itself immediately to the east of Martina’s
TRIMA 1 property. The San Miguel property
is about 130km to the north of Boston.
The properties are along the well-known and
highly mineralized East Mindanao fault.
The Boston exploration area is held in an
Ancestral Domain Title of the Boston Man-
14 | ASIA Miner |July/August 2012
project of a 15 million tonnes per annum operation
for 24 years which can then be followed
by the stage 2 expansion to either
double the throughput rate or extend mine life
to up to 40 years.”
Drilling on Crazy Horse Resources’ Taysan Copper-Gold Project in Southern Luzon.
Martina acquires additional gold prospects
daya-Manobo Indigenous Peoples. The Boston
properties comprise 19,151 hectar es.
The Indigenous Peoples will also r eceive 1
million common shares and warrants of Martina
and a cash payment of US$150,000. The
San Miguel property is also within an Ancestral
Domain T itle and r epresented by the
Upper San Miguel Manobo Sectoral Council
of Elders and Leaders. The Indigenous
Peoples will r eceive a cash payment of
US$50,000. The San Miguel pr operty comprises
about 18,000 hectares.
As part of the transaction BlueCreek will retain
a 30% ownership in each of the properties
and the local Indigenous Peoples will hold the
balance of the properties. Martina can, at its
option, acquire BlueCreek’s 30% economic interest
in the properties based on the following:
Located in Southern Luzon, Taysan is accessible
from Manila by 106km of expr essway
followed by 7km on sealed pr ovincial
roads. It is 20km fr om the provincial capital
on sealed provincial roads.
Discovery of 500,000 ounces of gold or its
equivalent to NI 43-101 resource standard for
2.5 million common shares; discovery of 1 million
ounces of gold or its equivalent to NI 43-
101 resource standard for 5 million common
shares; and 1 million common shares per additional
1 million ounces or its equivalent to NI
43-101 resource standard.
Since this acquisition Martina has also acquired
up to a 68% interest in privately held exploration
land in northeast Mindanao. The
company has signed an MOU with Consolidated
Ores Philippines, a Filipino company owned
by the Adviento Group, to acquire an initial 40%
interest in its property known as Umalag.
Consolidated Ores holds a Mineral Production
Sharing Agreement for Umalag, which is
in the Province of Surigao del Sur.

INTERNATIONAL diversified resource company
Astra Resources, through its joint venture
in Cagayan River Construction and
Development Corporation (CRCDC), will
begin dredging its iron sands project later this
year. The Babuyan Channel Ir on Sand Lode
in the province of Cagayan, northeast Luzon,
is estimated to contain more than 31.3 billion
tonnes in the Mineral Pr oduction Sharing
Agreement areas (MPSA), which is only a
fraction of the lode.
Through its subsidiary Astra Philippines Pty
Ltd, Astra beneficially owns 90% of the joint
venture company CRCDC, a Philippine registered
company. The ultimate goal of
CRCDC is of f-shore mining of magnetite
sand with a top monthly pr oduction of
300,000 tonnes on a floating plant.
Astra’s CEO Dr Jaydeep Biswas says commencement
of the project is pursuant to a Memorandum
of Agr eement by and between
BEZANT Resources has signed an option
agreement with Gold Fields Netherlands Services
for the potential disposal of its Philippines
subsidiary Asean Copper Investments
Limited which has the Mankayan Copper -
Gold Project on Luzon. In light of Gold Fields
recent further part exercise of their options
with Lepanto Consolidated Mining and Liberty
Express Assets to acquire up to 60%
of the adjacent Far South East pr oject, Bezant
believes there is a good probability that
the option will be exercised.
Under the terms of the agr eement, Gold
Fields paid a non-r efundable upfront cash
payment of US$7 million to Bezant, with a
further cash sum of US$63 million becoming
payable, should the option be exercised prior
to its scheduled expiry on January 31, 2013.
Bezant’s chairman Gerry Nealon says, “In
the event that the option is exercised and the
sale and transfer of the issued shar es in
Asean is completed, the company anticipates
that approximately 50% of the gross sale proceeds
will potentially be available for distribution
to shareholders. Of the 50% of funds
retained, all taxes will be paid out of this sum
with the remainder being retained to progress
the company’s copper/gold exploration portfolio,
particularly in Argentina.”
Iron sands dredging by the end of 2012
CRCDC and the Provincial Government of Cagayan,
which was ratified by the Pr ovincial
Board on May 4, 2012. “This grants CRDCD
the authority to dr edge, extract and utilize
‘quarry resources’, sand particles and other
materials of commercial value such as magnetite
iron sands from the Cagayan River Delta.”
The authority to dredge the assigned area, a
200 metre by 12km strip along the mouth of
the Cagayan River, located in Aparri, was stipulated
to be for a period of 25 years, with production
expected to reach annual gross sales
of about 1 million tonnes by 2014. The initial
estimated resource is 135 million tonnes.
Astra’s managing director Silvana De Cianni
says Astra is in the process of acquiring additional
mining areas alongside MPSA 1, 2, 3
and 4 to add to the joint ventur e. “This site,
to be secured from the Department of Environment
and Natural Resources, has inferred
resources of 13 billion tonnes.”
It is expected that this business partner -
ship will significantly enhance the Economic
Development Program, particularly in the
mining industry sector, in the Philippines.
Astra, through its joint ventur e interest in
CRCDC, has successfully arranged all r equirements
to start full operation by the end
of 2012. Top level discussions will be held
in Manila for a corporate review of the requirements
before full implementation.
Astra Resources’ global portfolio includes
gold interests in South East Asia, coal in
Africa, iron ore in India, Norway and the Philippines,
carbon efficient and commodity businesses,
the pr oduction of high-str ength
T-Steel technology in Hungary , clean coal
technology and the provision of mining services
housing in Rockhampton, Queensland,
and a large agricultural focus on creating Australia
as the food bowl for the Asian r egion
through Astra Agricultural Resources.
Bezant signs option on Mankayan project
The Guinaoang porphyry copper/gold deposit,
or Mankayan pr oject, is in the Mankayan-Lepanto
mining district, an ar ea of
porphyry copper belts in the Philippines. It is
240km north of the capital and 6km east of
the copper/gold mine owned and operated
by Lepanto Consolidated, and is accessible
by both road and air.
The Mankayan project of Bezant Resources is in a mineral-rich area of northwest Luzon.
Philippines
July/August 2012 | ASIA Miner | 15

China
Drilling extends main zone at Beiya
DRILLING by Asia Now Resour ces at the
main zone of the Beiya pr oject has extended
the gold-silver and base metal zone to
2480 metres by 180 to 700 metres with the
zone remaining open to the northwest and
east. The main zone is adjacent to the
open-pit Beiya Gold Mine that pr oduces
200,000 ounces of gold annually but which
is not part of Asia Now’s property.
The drilling r eturned a number of higher
grade intersections: 5.8 metr es @ 1.0
grams/tonne gold, 121.6 grams/tonne silver
and 9.9% lead and zinc, including 1.5 metres
Asia Now Resources’ Beiya and Habo projects are in Yunnan province.
钻探作业扩展了北衙北区块的主区域
亚洲现代资源公司在其位于云南省的北衙项
目实施的钻探作业使北衙北区块的金-银和
基础金属区域长度延伸至2480米,宽度
介于180-700米,并保持向西北和东方向延
伸。该主区域临近露天开采的北衙金矿,北
衙金矿年产黄金20万盎司,并不属于亚洲
现代公司。
此次钻探作业得到许多较高品位的矿段:
5.8米矿段金品位1.0克/吨,银品位121.6
克/吨,铅锌品位9.9%,其中,1.5米金品位
2.1克 /吨,银品位169克 /吨,铅锌品位
14.4%;10.5米矿段金品位1.0克/吨,银品
位48克/吨,铅锌品位4.8%。
其他显著的矿段包括:1.3米矿段金品位
16 | ASIA Miner | July/August 2012
@ 2.1 grams/tonne gold, 169 grams/tonne
silver and 14.4% lead and zinc; and 10.5 metres
@ 1.0 grams/tonne gold, 48
grams/tonne silver and 4.8% lead and zinc.
Other notable intersections are: 1.3 metres
@ 0.35 grams/tonne gold, 375
grams/tonne silver and 26.1% lead and
zinc; 10.5 metres @ 0.22 grams/tonne gold,
89.1 grams/tonne silver, 0.3% copper and
3.9% lead and zinc, including 1.5 metres @
1.0 grams/tonne gold, 308 grams/tonne silver,
1.68% copper and 6.1% lead and zinc;
1.5 metres @ 4.0 grams/tonne gold and 14
0.35克 /吨,银品位375克 /吨,铅锌品位
26.1%;10.5米金品位0.22克/吨,银品位
89.1克/吨,铜品位0.3%,铅锌品位3.9%,
其中,1.5米矿段金品位1.0克/吨,银品位
308克/吨,铜品位1.68%,铅锌品位6.1%;
1.5米矿段金品位4.0克/吨,银品位14克/
吨;1.7米矿段金品位2.18克/吨,银品位21
克/吨;4.5米金品位0.22克/吨,银品位58克
/吨,铅锌品位4.7%,其中1.5米金品位0.36
克/吨,银品位148克/吨,铅锌品位10%。
公司技术总监Noel White博士表示,“非常
高兴在公司刚刚完成NI43-101报告后,我们
又扩大了主矿带范围。北衙工作不断取得的
成果是我们尽快开展预可行性研究的主要推
动力。为了进一步完善预可行性研究的准备
grams/tonne silver; 1.7 metr es @ 2.18
grams/tonne gold and 21 grams/tonne silver;
and 4.5 metr es @ 0.22 grams/tonne
gold, 58 grams/tonne silver and 4.7% lead
and zinc, including 1.5 metr es @ 0.36
grams/tonne gold, 148 grams/tonne silver
and 10% lead and zinc.
Chief technical advisor to the company, Dr
Noel White, says, “We are very pleased that
not long after completing an initial NI43-101
resource estimate late last year, we have already
expanded the main zone at Beiya.
The continuing growth at Beiya is encouraging
us to commence a pre-feasibility study
as soon as possible. In addition to finalizing
our preparations for the study we will continue
to drill several new highly pr ospective
copper-gold targets in the Beiya area.”
Asia Now has earned 72% with the option
of increasing to 90% its interest in the Beiya
North property. Beiya North is part of the
Beiya project that involves two joint ventur e
companies. Beiya North is part of the JV with
Yunnan Non-Ferrous Geology and Mineral
Resources Company. The company is ear -
ning 70% with the possibility of earning up to
88% interest in another JV with Yunnan Geology
and Mineral Resources Company.
Asia Now has appointed Har old Shipes as
president and chief executive officer, replacing
Kaihui Yang who served in these r oles since
May 1, 2006, under the terms of a management
services consulting agreement. Harold
Shipes has 30 years of mining experience in
senior positions in base and pr ecious metals
production, engineering and project development
management around the world.
工作,我们将继续在北衙地区几处潜力较大
的铜金靶区增加钻孔。”
亚洲现代已经获得北衙北区块72%的股
份,并有权提高至90%。北衙北是北衙项目
的一部分,涉及两个合资企业。北衙北项目
是与云南有色金属地质矿业资源公司合资项
目的一部分。该公司正在获得与云南地质矿
业资源公司的一个合作项目70%的股份,并
有可能增至88%。
亚洲现代已经任命Harold Shipes先生为公
司总裁兼首席执行官,接替了依据管理服务
咨询协议、自2006年5月1日开始任职的杨
开辉先生。Harold Shipes先生在世界范围内
的基础金属和贵金属生产、工程和项目开发
管理领域拥有30年的高管层经验。

China
Follow-up exploration in Yejiaba area
MINCO Gold has started an exploration
program at the Longnan pr oject in Gansu
province aimed at following up multiple drill
targets defined in its 2010 and 2011 pr ograms.
The new program is focusing primarily
on the Shajinba and Baimashi sub-areas
within the Yejiaba area, and includes surface
trenching, sampling, drilling and tunnelling.
The company has planned about 3000
metres of diamond drilling in eight holes and
about 3000 metres of underground tunnelling
designed to follow-up the drill targets.
The surface trenching and sampling is being
conducted to determine the overall footprint
of the multiple gold zones identified in the
Yejiaba metallogenic trend.
The initial parts of the pr ogram include
mobilization of geological teams, initiation of
surface work, and the delivery and set up of
a drill rig at the Baimashi gold zone. Testing
of Baimashi Zones 1 and 2, along with the
corresponding induced polarization anomalies
previously defined at the depth will be
conducted to pr ovide data for initial r esource
definition and program extensions.
Canadian-based Minco Gold has successfully
maintained 12 exploration permits
in the south of Gansu province, collectively
referred to as the Longnan project. As well
as the exploration follow-up, the company
has initiated construction of an access road
18 | ASIA Miner | July/August 2012
to the Yejiaba area facilitating the tunnelling
and drilling. Minco Gold owns an exploration
property portfolio covering more than
1000sqkm of mineral rights in China.
Meanwhile, Minco Gold’s vice president finance
and chief financial officer Paul Zhang
resigned during April with the company’ s
corporate controller Ellen Wei appointed interim
chief financial of ficer. She has been
with the company since February 2005 and
was appointed corporate controller in January
2009.
The company has planned about 3000 metres of diamond drilling
in eight holes and about 3000 metres of underground tunnelling
designed to follow-up the drill targets.
叶家坝区域跟进的钻探作业
明科金矿公司旗下的甘肃省陇南项目已经启
动了勘探项目,旨在跟进2010年和2011年计
划圈定的多个钻探靶区。此次计划主要关注
叶家坝区域的沙金坝和白马石子区域,包括
地表槽探、取样、钻探和坑探。
为了跟进这些钻探靶区,公司计划实施约
300米金刚石钻探、共计8个钻孔和约3000米
地下坑探。地表槽探和取样正在进行之中,
旨在确定在叶家坝成矿带发现的多个金矿化
区域的总体生态足迹。
该计划的初始部分包括地质队的调动、
地表工作的初始化和白马石金成矿区域的钻
机交付与安装。白马石1号与2号区域以及
先前在深部确定的相应的激电异常将被进行
测试,为初步的资源定义和计划的扩展提供
数据。
总部位于加拿大的明科金矿公司已经成功
地保有甘肃省南部的12个勘探许可证,统
称为陇南项目。除了跟进的钻探作业,公司
启动了通向叶家坝区域的道路建设工作,以
推进坑探和钻探作业。明科黄金公司在中国
Ellen Wei has more than 10 years experiences
with a major Chinese auditing firm
and three years with Ernst & Young LLP respectively.
Before being appointed as corporate
controller, she served four years as
the CFO for Minco Mining (China) Ltd.
Minco Gold’s new exploration program is focused on the Yejiaba area of the Longnan project to follow up former
promising results.
拥有的勘探资产组合,覆盖的矿权面积超过
1000平方公里以上。
同时,明科黄金公司的财务副总裁兼首席财
务官Paul Zhang先生于四月份辞职,公司财务
总监Ellen Wei女士被任命为临时首席财务官。
她自2005年2月开始在公司工作,于2009年1
月被任命为财务总监。
Ellen Wei女士在一家大型的中国审计公司工
作过10年,在安永会计师事务所工作过3年。
在被任命为财务总监之前,她在明科矿业(
中国)有限公司担任了四年首席财务官。

China
Drilling at Linc Energy’s Chinchilla project in Australia. Gasifier infrastructure at Linc’s Queensland plant.
Linc Energy and GCL in deal for UCG to GTL
LINC Energy has agr eed to key commer cial
terms with GCL Projects Limited, a subsidiary
of Golden Concord Holdings (GCL-Poly), to
form a joint venture to commercialize UCG (Underground
Coal Gasification) to GTL (Gas to Liquids)
in China with the first multi-gasifier
project to begin construction within six months
of completion of the formal binding legal agreements.
GCL-Poly has interests in power generation,
coal and poly-silicon production.
Linc and GCL have agreed to cooperate via
an incorporated JV in the utilization of the
world-leading UCG to GTL pr ocess Linc has
developed over the past five years at its Chinchilla
site in Queensland, Australia. Linc also
owns the world’s only commercial UCG operation,
Yerostigaz, in Uzbekistan.
Linc will hold 33% of the JV and GCL 67%.
GCL will provide US$15 million in working capital
to the JV in thr ee equal instalments over
Linc Energy与保利协鑫合作发展UCG制合
成油项目
LINC 能源公司已经与保利 协 鑫(GCL-
Poly)旗下子公司GCL项目有限公司达成关
键商业条款,双方将成立一家合资公司,在
中国发展煤炭地下气化(UCG)生产天然
气合成油(GTL)的商业项目。第一个多功
能气化项目将在签署有法律约束力的正式协
议后六个月内开始建设。保利协鑫在发电、
煤炭和多晶硅产品方面都有投资。
Linc公司和保利 协 鑫 已 达 成协议,通
过一家合资股份有限公司合作利用Linc公
司的UCG生产GTL工艺。Linc公司在过去
的 五 年 时间里在 澳 大 利 亚 昆 士 兰州的
Chinchilla矿区开发的这一生产工艺居于
世界领先水平。该公司在乌兹别克斯坦的
Yerostigaz工厂是世界上唯一一个商业化
UCG项目。
Linc公司和保利协鑫在合资公司中持有股
20 | ASIA Miner | July/August 2012
the first three years. GCL also has an obligation
to principally arrange CAPEX funding of commercial
projects the JV undertakes in China via
debt and other structures.
Linc will grant an exclusive licence to the JV
for use of its UCG and GTL intellectual property
in China. GCL will provide US$5 million of working
capital to begin site selection and engineering.
Linc will complete the site selection and
majority of the engineering, commencing with
a commercial UCG gas facility consisting of initially
four commercial size UCG gasifiers working
in parallel. GCL has also agr eed to
subscribe Aus$120 million for an approximate
5% interest in Linc Energy. It has agr eed to
subscribe to a first tranche Aus$60 million placement
on execution of the JV contract suite
for 2.5% of Linc’s issued stock.
Linc’s chief executive of ficer Peter Bond
says, “I am very pleased that we have reached
份分别为33%和67%。保利协鑫将在前三年
时间内以等额形式分三期向合资公司提供共
1500万美元的流动资金。此外,保利协鑫
还有义务作为主要发起人为合资公司在中国
推行的商业项目通过债务或其他融资结构安
排基建费用融资。
Linc公司将为该合资公司颁发独家许可
证,保证其在中国使用Linc公司拥有的UCG
生产GTL的知识产权。保利协鑫将提供500
万美元的流动资金,用来启动项目选址和设
计。Linc公司将完成项目选址和大部分的设
计工作,开始建造一个商业化UCG天然气
设施,它最初包括四个并行的工业规模的
UCG气化炉。
保利协鑫同意以1.2亿澳元收购Linc 能源
公司大约5%的股份。它还同意将在合资公
司合同 签署生效后以第一笔6000万澳元的
金额承购Linc定向增发的股份,这批股份将
占Linc已发行股份的2.5%。
An aerial view of Linc Energy’s plant at Chinchilla in
Queensland, Australia.
agreement on the commercial terms with GCL.
We have been working tirelessly on our options
into China over many months, having long
identified China as a key market for Linc Energy’s
UCG expertise and our GTL operational
excellence and know how. China’s insatiable
appetite for liquid fuels and gas pr esents Linc
Energy and GCL with a unique opportunity to
capitalize on this world changing market.”
“Linc Energy chose GCL as its partner in
China for a variety of reasons, starting with my
relationship and respect for the chairman of
GCL Poly, Gongshan Zhu, but also particularly
because of GCL’s entrepreneurial nature, its
strong financial position, its pr oven ability to
execute large projects in a fast and cost effective
manner and its history of protecting its own
world-leading intellectual property. GCL is a
solar energy developer, and the largest poly silicon
manufacturer in the world.”
Linc公司首席执行官Peter Bond说:“我
很高兴我们和保利协鑫达成了商业条款。
我们早就认识到,对 于 Linc Energy公
司拥有的UCG专业知识和GTL的完美运行
和技能来说,中国是个关键的市场。中国
对于液体燃料和天然气的无穷需求为Linc
能源和保利协鑫提供了一个独特的机会,
可以让他们利用这个正在改变着世界的市
场。”
“Linc 能源选择保利协鑫作为在中国的
合作伙伴,其中有多方面的原因。最初是
由于我与保利协鑫董事长朱共山先生之间
的关系以及我对他的敬意,当然同样重要
的原因是保利协鑫所具有的创业精神和强
势的财务状况,它快速高效益地实施大型
项目的能力已得到证明,一贯以来成功地
保护了其自身的全球领先的知识产权。保
利协鑫是太阳能开发商,同时也是全世界
最大的多晶硅生产商。”

China
Drilling identifies further Jinfeng gold resources
EXPLORATION drilling at Eldorado Gold’ s
operating Jinfeng project in Guizhou province
continues to identify further gold resources at
the mine site and on surrounding exploration
licences. Jinfeng is one of the company’ s
three operating pr ojects in China with a
fourth, Eastern Dragon, under construction.
The drilling is being carried out within the Jinfeng
mining licence, on the surr ounding Jinfeng
42 exploration licences, and on both the
An open pit at Eldorado Gold’s Jinfeng project in Guizhou province.
Jinluo and Jindu joint venture project areas.
At the mine site, 17 underground holes for
4300 metres and 8 surface holes for 4200
metres were completed earlier this year, primarily
testing targets along the mineralized
F2, F3 and F6 faults. Notable r esults included
intersections of 20 metr es @ 2.13
锦丰实施的钻探查明了更多的黄金资源
埃尔拉多黄金公司对其位于贵州省的锦丰项
目实施的钻探作业继续在该矿区和周围的勘
探许可区域查明更多的黄金资源。锦丰是公
司位于中国的三大运营项目之一,处在建设
中的东龙是公司的第四个项目。
钻探作业正在锦丰采矿证区域、周围的锦
丰42个勘探执照区域以及锦罗和锦都合资
项目区域实施。
今年早些时候在矿区共完成了17个井下钻
孔共计4300米和8个地表钻空共计4200米,
主要测试沿矿化的F2、F3和F6断层的靶区。
显著的矿段包括:20米矿段金品位2.13克/
吨,34米矿段金品位1.88克/吨,52.5米矿段
22 | ASIA Miner | July/August 2012
grams/tonne gold, 34 metr es @ 1.88
grams/tonne and 52.5 metr es @ 5.6
grams/tonne, all from the F3 fault; and 12
metres @ 19.8 grams/tonne fr om a linking
structure between F3 and a deeper , subparallel
fault. On the surrounding Jinfeng 42
exploration concessions, 12 drill holes for
3700 metres were completed on the Lintan
and Yaojiatan prospects, primarily targeting
mineralized fault zones.
Exploration has also been carried out at the
Tanjianshan project in Qinghai province. There
were 39 drill holes completed for 2966 metres
from the floor of the Jinlonggou pit, targeting
blocks of inferred mineral resources lying below
the current design pit. The holes did not identify
any significant new zones of mineralization.
5.6克/吨,以上矿段均来自F3断层;12米矿
段金品位19.8克/吨,来自F3与一个更深的、
近似平行的断层之间的连接构造。
在周围的锦丰42个勘探执照区域,12个钻
孔共计3700米的钻探作业在林滩和姚家滩
矿区完成,主要针对矿化断层区域。
青海省的滩间山项目也实施了钻探作业。
金龙沟矿坑底部共完成了39个钻探,共计
2966米,主要针对当前设计矿坑以下的推
断资源量区块。这些钻孔未发现任何显著的
新矿化区域。
冬季的天气和许可批准的延迟使东龙项
目 建设工作停止。 待收到项目许可批 准
(PPA),埃尔拉多期望建设工作在第二季度
The winter season and permitting delays saw
construction halted at the Eastern Dragon project.
Pending receipt of the Project Permit Approval
(PPA), Eldorado expected construction
to resume during the second quarter.
Gold production at the Tanjianshan operation
has remained steady year-over-year,
with higher tonnes and grade of fsetting
lower contribution from the Qinlongtan concentrate
tailings impoundment. At Jinfeng
mining of the bottom of
the pit was expected to
be completed during the
second quarter after
which waste stripping for
the cutback was to commence.
At White Mountain
the grade of or e
being mined is consistent
with the mine plan and
recoveries have incr eased
as a r esult of the
construction of a caustic
pre-treatment system in
the second half of 2011.
The addition of production
from Eastern Dragon
will contribute to Eldorado’s
plan to expand gold
production by about
160% over the next five years. Most of this
growth is expected to come from new projects
in Gr eece and Romania. Company
president and CEO Paul Wright says the expansion
plan will make Eldorado one of the
fastest growing emerging senior gold pr oducers
globally.
重新启动。
滩间山项目的黄金产量与上年同期相比保
持稳定,较高的吨位数和品位与青龙滩精矿
尾矿库的较低产出相抵消。在锦丰,矿坑的
底部开采预计在第二季度完成,之后开始废
石剥采工作。在白山,正在开采的矿石品位
与开采计划一致,2011年下半年建造的碱
液预处理系统提高了回收率。
东龙产量的增加将推进埃尔拉多在未来五
年黄金产量扩大约160%的计划。大部分的
增长预计来自希腊和罗马尼亚的项目。公司
总裁兼首席执行官Paul Wright称,扩产计划
将使埃尔拉多成为全球发展最快的新兴高级
黄金生产商之一。

China
Improved zinc outlook for China Shen Zhou
CHINA Shen Zhou Mining & Resour ces has
brought its Xinjiang province zinc production
back online following the winter season and,
according to CEO Xiaojing Yu, will continue
to improve its operational ef ficiency. The
company’s subsidiary, Xingzhen Mining Co,
resumed ore processing in mid-April with the
20,000 tonnes of or e accumulated during
winter the first to be processed.
Xingzhen primarily engages in zinc and copper
exploration, mining and pr ocessing. Its
processing plant was suspended due to the
severe winter weather, making its operation
uneconomical. However, its Keyinbulake Mine
continued mining during this period r esulting
in the stockpiling of 20,000 tonnes of zinc ore
and copper ready for processing. Keyinbulake
has recently started pr ocessing high-grade
zinc ores and high-grade copper or es rather
than only low-grade zinc ore as before.
Commenting on the changing dynamics of
the global zinc market, Xiaoyang Y u says,
“Data and forecasts from industry authorities
suggest that the global zinc market is tr ending
toward a more balanced demand and
supply relationship. An impr oving balance
between the global demand and supply is
potentially positive for zinc price.”
She points out that global demand for refined
zinc grew 2.2% to 12.85 million tonnes
in 2011 and is for ecast by the ILZSG (International
Lead and Zinc Study Group) to grow
by 3.9% to 13.35 million tonnes in 2012.
At the same time, global production of refined
zinc increased 2.7% to 13.16 million ton-
中国神舟矿业公司提升了对锌矿生产的预期
中国神舟矿业资源股份有限公司位于新疆省
的锌矿生产已经在冬休期过后重新启动,另
外,据公司首席执行官于晓静称,公司将
继续提高其运营效率。神舟矿业的子公司星
振矿业公司于3-4月份期间重新启动矿石加
工业务,冬季积累的2万吨矿石将被首先处
理。
星振主要从 事 锌和铜的勘探、开采和
加工业务。其加工厂之前曾因冬季天气恶
劣、运营效率低而中止。但是,公司旗下
的克因布拉克矿在此期间持续开采,导致
待处理的锌矿石和铜矿石堆积了2万吨。
克因布拉克矿最近已经开始生产高品位的
锌矿石和铜矿石,先前仅生产低品位的锌
矿石。
24 | ASIA Miner | July/August 2012
China Shen Zhou Mining & Resources has projects throughout China, including base metals in the far northwest.
nes in 2011 and is projected to grow by 2.4%
to 13.48 million tonnes in 2012. The surplus
of refined zinc is expected to decr ease by
more than 50% year -over-year to 135,000
tonnes in 2012.
Decline in the surplus has been attributed
to the depletion of a number of large mines
over the next several years.
Among the mines to be shut down include
the world’s largest zinc mine - Teck Resources’
Red Dog Mine (600,000 tonnes/year) in
对于全球锌金属市场不断变化的动态,于
晓静称,“来自行业当局的数据和预测显示
全球锌金属市场正在趋于一个更加平衡的供
求关系。全球供求之间不断提升的平衡对于
锌金属的价格有潜在的正面影响。”
她指出,精炼锌的全球需求量在2011年
增长了2.2%,达到1285万吨,国际铅锌研
究组预测在2012年需求量将增长3.9%,达
到1335万吨。同时,精炼锌的全球产量在
2011年增长了2.7%, 达 到 1316万吨,
预计在2012年将增长2.4%,达到1348万
吨。精炼锌过剩量预计在2012年较上年同
期相比将减少50%至13.5万吨。
过剩量的减少归因于在未来几年许多大型
矿山的枯竭。这些即将关闭的矿山包括世界
最大的锌矿- Teck资源公司位于阿拉斯加州
Alaska; the world’s second largest zinc mine
– Minmetals’ Century Mine (500,000
tonnes/year) in Australia, Xstrata Zinc’ s
Brunswick Mine (240,000 tonnes/year) in Canada,
Vedanta Resources’ Skorpion Mine
(145,000 tonnes/year) in Namibia and other
large mines in Canada, Ireland and Peru.
Global zinc mine pr oduction remains
below refined zinc output, with zinc mines
forecast to grow by 4.8% to 13.37 million
tonnes in 2012.
的Red Dog矿(60万吨/年);世界第二大
的锌矿-中国五矿集团位于澳大利亚的Century矿(50万吨/年),Xstrata锌业公司位于
加 拿 大的Brunswick矿 ( 24万吨/年 ) ,
Vedanta资源公司位于纳米比亚的Skorpion
矿(14.5万吨/年)以及其他一些位于加拿
大、爱尔兰和秘鲁的大型矿山。
全球锌矿产量仍低于精炼锌产量,锌矿预
计在2012年增长4.8%,达到1337万吨。
除了新疆的锌铜矿运营,神舟矿业还在
内蒙古的苏莫查干敖包区域从事矿石的开
采和加工;在贵州省务川县从事萤石和重
晶石的开采和加工;在贵州省的沿河县从
事萤石和重晶石的开采和加工;在安徽省
旌德县从事萤石的开采和加工;在内蒙古
的乌拉特后旗从事锌/铜/铅矿石的加工。

Mongolia
Study confirms Ovoot is financially robust
A PRE-FEASIBILITY study (PFS) for Aspir e
Mining’s Ovoot Coking Coal Pr oject in northern
Mongolia confirms that it is financial robust
as well as technically and commercially
feasible. The PFS used r ecently modelled
open pit probably coal reserves of 178 million
tonnes, which categorized Ovoot as the third
largest coking coal deposit in Mongolia, by
reserves. Aspire to date has only explor ed
20% of the Ovoot Basin.
The PFS is based on a large open pit mine
annually delivering up to 15 million tonnes of
raw coal to coal handling and pr eparation
plants over a 15 year life of mine (LOM), pro-
Aspire’s projects in northern Mongolia and the existing and proposed rail infrastructure.
NEW ASX-listed Mongolian explorer Eumerella
Resources is initially focusing on tungsten exploration
at its licence in northeast Mongolia
but is also seeking other commodities at this
target. The Western Australia-based company
is also seeking other projects in the mineral-rich
country. Eumerella was admitted to the official
list of the ASX on May 3 after raising ar ound
Aus$3.5 million in its initial public of fering. It is
focused on the acquisition and exploration of
mining projects in Mongolia.
Through its wholly-owned subsidiary, Eumeralla
Resources Pte Ltd, the company has
interests in Centreville LLC, which holds a
26 | ASIA Miner | July/August 2012
ducing 153 million tonnes of high quality coking
coal. The attractive economics ar e
driven by LOM 82% average conversion rate
of ROM tonnes to pr oduct together with a
low LOM strip ratio of 7.6bcm of waste per
ROM tonne of coal including pre-strip.
Aspire says mine life and the quantity of
marketable coking coal can be incr eased
through further geotechnical and infill drilling,
underground mining studies and ongoing exploration.
The PFS defines a two stage pr oduction
profile for the project over an initial
mine life of 15 years. Stage 1 involves annual
production of 6 million tonnes of saleable coal
Initial Eumerella focus is on tungsten
granted minerals exploration licence. During
the year ended December 31, 2011, it acquired
the Ovoot licence in northeast Mongolia
from Centreville LLC. Eumeralla then acquired
Centreville on December 31, 2011.
Eumeralla’s licence covers 12,657 hectares
and includes the historical Chuluun Khor oot
tungsten mine which was active between
1945 and 1955. The licence is about 20km
north of the town of Dashbalbar and 85km
northwest of the Solowevsk-Choibalsan railway.
Previous exploration at the pr oject has
defined tungsten targets, but follow-up exploration
has been limited.
delivered by 191km sealed r oad to the new
railhead at Moron before being transported
to end markets from 2016. Stage 2 involves
annual production of up to 12 million tonnes
of saleable coal delivered by rail from Ovoot
to Erdenet before being transported to end
markets from 2018.
The staged development will de-risk the production
ramp-up and enable stage 1 operational
cashflows to underpin a futur e rail spur
line connection from Ovoot to link up with the
multi-user rail line at Moron. Ovoot will generate
substantial cashflows based on its competitive
average LOM operating cost of
US$118 per tonne. Aspire assumes its coking
coal will be sold on a 50/50 basis FOB at Russian
Far East Ports and at the Chinese border.
Using long term applicable coking coal price
estimates of US$200/tonne, a LOM EBITDA
of US$68 per tonne is achieved.
Northern Railways LLC, a special purpose
infrastructure company owned by Aspire, is responsible
for delivering the Erdenet to Moron
multi-user rail line to underpin stage 1 production.
This rail line has an estimated capex of
US$1.1 billion (plus contingency). Ovoot operating
cost assumptions assume rail tariffs on
this line sufficient to support attractive financial
returns to Northern Railways.
Aspire’s managing director David Paull says,
“Aspire is ideally placed to be the leader in unlocking
the emerging northern Mongolian coal
province. The positive PFS underpins our vision
of developing a large-scale coking coal
mine and associated rail infrastructure.”
Eumeralla plans to focus initially on tungsten
exploration, planning a geological mapping
and surface sampling program followed
by geophysical surveys and air core and reverse
circulation drilling to test the anomalies.
The aim of this work is to evaluate the tungsten
potential of Chuluun Khoroot, as well as
exploring adjacent areas of mineralization within
the Ovoot licence. Other commodities
could be targeted at the project in the future.
The Perth-based company has budgeted
exploration expenditure of $1.13 million in
its first year and another $1.03 million in the
second year.

THE completion of data logging from the final
drill holes of the phase one exploration pr ogram
has prompted Draig Resources to claim
that says its Teeg licence in central-souther n
Mongolia shows great promise. The company
intersected coal in 18 holes during the pr ogram
which was completed at the end of April.
A series of steeply dipping coal seam intersections
were logged at shallow depths of
less than 175 metres along a north-west trending
strike length. These intersections are at
open pit mineable levels.
The 6000 metre program was conducted
solely on Teeg, which sits within Draig’s parcel
of Ovorhangay licences in this coal-rich
area of Mongolia. Draig owns eight coal exploration
licences in Mongolia, four in Ovor -
hangay province and another four in the
South Gobi province further to the south, not
far from the Chinese border. It acquired the
Teeg coal licence shows ‘great promise’
The extremes facing Draig Resources in its drilling program at the Teeg licence in central-southern Mongolia.
XANADU Mines intends to acquir e the Oyut
Ulaan Copper/Gold Project in the South Gobi
region through the purchase of Temujiin Mining’s
wholly-owned subsidiary Vantage LLC.
The ASX-listed company has executed a
terms sheet with Temujiin, which is a private
Canadian company.
Upon completion of a satisfactory due diligence
and conditional on Temujiin shareholder
approval, Xanadu will negotiate a
definitive agreement to purchase Oyut Ulaan.
Once definitive documentation is finalized and
a mining licence issued, which will ear n Xanadu
an initial 25% inter est, the Board will
propose purchase of the remaining 75% be
approved at a general meeting of shar ehol-
licences in late 2011 through BDBL LLC, previously
a subsidiary of Peabody-Winsway.
The collated data from the 6000 metre program
showed that among the best coal
seams intersected were those with apparent
seam thicknesses of 86.28 metr es, 66.75
metres, 37.8 metres and 36.12 metres. The
86.28 metre intersection extended from 27
metres to 146 metres.
The ASX-listed company has been undertaking
resource modelling to determine the
structure of the licence and anticipated completing
a maiden JORC-compliant estimate
for Teeg by the end of June. Coal quality and
petrographic testing is continuing at ALS laboratories
in Mongolia and Australia. Draig’s
managing director Mark Earley says, “I’m extremely
pleased with the progress we made
in the tough operating conditions imposed by
the harsh Mongolian winter-spring period.
ders. This process is expected to be completed
during the current quarter.
Oyut Ulaan comprises a tenement package
of 120sqkm and is about 275km northeast of
the Oyu Tolgoi mine and 60km west of the industrial
centre of Sainshand and the main
Trans-Mongolian Railway. It was explored by
Mongolian and Russian geologists in the
1960s and worked on by Ivanhoe Mines from
2001 to 2009. Ivanhoe rationalized its extensive
copper porphyry exploration licences in
the region after it decided to concentrate solely
on the Oyu T olgoi project, resulting in the
transfer of ownership to Temujiin.
Extensive geophysical, tr enching and drill
data has been compiled by pr evious owners
Mongolia
“All the coal we inter cepted was relatively
shallow and definitely at open pit mineable levels.
I think the Teeg licence shows great promise
based on the drilling we have done to
date. Our aim is to complement these results
with the drilling to be undertaken during the
phase two program, which will include the
South Gobi licences.”
The company plans to begin the phase two
program later in the year. As well as including
the South Gobi licences, the program is likely
to also include further exploration at T eeg
with some additional exploration also expected
to be undertaken on the neighbouring
Nariin Teeg licence, building on a geophysics
survey completed over the licence in February
2012. Draig has completed the establishment
of its Mongolian of fice and has
appointed Terrence Thompson as the Mongolian-based
general manager.
Xanadu eyes off new copper/gold project
which Xanadu is interr ogating. Successful
completion of this acquisition will further consolidate
the company’s copper and gold asset
portfolio in the South East Gobi region, which
should benefit from the near-term rail infrastructure
planned for the area.
Consideration of the acquisition includes issuing
3.95 million new shar es and Aus$4.25
million of shares based on a price equal to the
15 day VWAP as calculated on the day of the
general meeting. An additional 15 million shares
will also be issued to Temujiin upon Xanadu
defining a JORC-compliant r esource over a
mineable area of at least 90 million tonnes at
an average 1% copper equivalent and subject
to a favourable pre-feasibility or scoping study.
July/August 2012 | ASIA Miner | 27

Indonesia
Sorowako nickel furnaces back on line
INDONESIAN publicly-listed mining company
PT Vale, formerly PT Inter national Nickel Indonesia,
has restarted two furnaces damaged
during an incident at its Sorowako Nickel
Project in South Sulawesi in 2011. The repair
and upgrades of the two fur naces were necessary
due to the incident which involved a
group of people claiming to represent the interests
of local residents.
The angry protesters captured Vale workers,
blocked strategic roads in the city and
called for compensation for the loss of agricultural
land they claimed was flooded during
the power plant’s construction. It is not
clear how the furnaces were damaged during
the incident.
The company says it used the situation to
bring forward planned maintenance on the
28 | ASIA Miner | July/August 2012
furnaces by 12 months, and perform upgrades
on the equipment. This r esulted in an
11% reduction in production of nickel matte.
“We turned the power on for furnace number
2 in April and this fur nace is now in full pr oduction
with 20% higher capacity,” finance director
Fabio Bechara said.
The company finally reached a settlement
with local residents in February and is for ecast
to produce about 72,000 tonnes of nikkel
matte this calendar year , down fr om
2010’s high of 76,000 tonnes but higher than
the 66.9 million tonnes produced in 2011.
“We are still on track for what we have
planned, although the r esult of the first
quarter was low. Because we concentrated
all the shutdowns in the first quarter , we
hope that we will r ecover and our produc-
Martabe production start is imminent
PROGRESS at G-Resources’ Martabe goldsilver
project is tracking well, with several major
milestones reached in preparation for first gold
The location of prospects and deposits at G-Resources
Martabe project in North Sumatra.
production to begin in July. It hosts a resource
base of 7.86 million ounces of gold and 73.48
million ounces of silver with production to start
at an annual rate 250,000 ounces of gold and
2-3 million ounces of silver.
The tailings storage facility wall is complete
and ready for project start up after wet weather
caused delays in April, a permanent
power supply has been connected to the
processing plant and a temporary power facility
has been installed and commissioned.
Conveyors and belting have been installed,
water commissioning in the pr ocessing plant
has commenced and the SAG and ball or e
grinding mills ar e technically complete. An
assay laboratory is also functioning and already
providing analysis of grade contr ol samples
and will be analysing pr ocess plant samples
once commissioning on ore commences.
The flagship $678 million Martabe project is
on the western side of Sumatra in the Batangtoru
sub-district of North Sumatra province. A
contract of works (COW) for the 1639sqkm
project was signed between G-Resources and
the Indonesian gover nment in 1997. G-Resources’
chief executive of ficer Peter Albert
says Martabe is set to become the core asset
on which the company will base a globally
competitive Asia-Pacific focused gold business.
“G-Resources is seeking to gr ow gold
production to more than one million ounces
annually through exploration success on the
large and highly prospective COW area.”
Of the total capital spend of $678 million,
tion will return to predicted levels,” said Vale
president Nicolaas Kanter.
PT Vale is 58.73% owned by V ale Canada,
20.09% by Sumitomo Metal Mining
and 21.18% by the public.
The company is allocating $150 million for
capital expenditures this year to support studies
for development plans. V ale hopes to
ramp up production capacity to 120,000 tonnes
of nickel matte by 2017, or almost 10%
of the world’s nickel supply. However, the
company needs about $2 billion to support
capacity upgrades in order to reach its production
goals in coming years. Fabio Bechara
says the company has allocated US$150 million
for capital expenditure during 2012.
Vale’s current production accounts for
about 5% of global nickel supply.
$542 million was incurred by late May with a
further $136 million to be spent prior to pr oduction
in July and a further $21 million falling
into the post-production period.
A 24-hour mining operation is already under
way and has stockpiled 150,000 tonnes of
ore ready for the start-up of processing operations.
Training and r ecruitment of employees
at the pr ocessing operations and
within the maintenance team is continuing in
readiness for the first production.
Drilling activities are also continuing at the
project’s Tor Uluala North and Horas Barat
deposits. The company is preparing for initial
drill holes at Tani Hill to confirm a potential buried
porphyry system and at Golf Mike targeting
near surface gold mineralization which
outcrops as a 600 metre x 1200 metre zone
of advanced alteration with surface rock samples
returning up to 12.2 grams/tonne gold.
Best recent results from a target west of the
Horas deposit include 25 metr es @ 2.3
grams/tonne gold and 2 grams/tonne silver
and 25.8 metres @ 1.31 grams/tonne gold
and 1 gram/tonne silver.
At the Gambi Kapur target south of Golf
Mike, 14 diamond drill holes have been completed
with best results including 31 metres
@ 2.3 grams/tonne gold and 6.4 metr es @
1.2 grams/tonne gold.

TWO Chinese companies have signed contracts
worth US$200 million with Bracken International
Mining for of ftake from the Big
George manganese mine in West Timor. The
agreements will see Shandong Coking Coal
and Sanit Corporation supplied with 30,000
tonnes of manganese each per month,
through the Kupang port. The significant
sales will put the company in a positive cash
position in the final quarter of 2012.
Production at the mine is scheduled to
begin in the third quarter of this year once a
new ship loader has arrived at the port. Tests
have confirmed the average manganese content
is between 50% and 68%. Inter national
logistics specialist Qingdao Newsky Energy
Investments will manage the product.
Bracken’s executive chairman Luke Brakken
says, “I am exceptionally excited about
the latest developments for the company. We
are entering a new phase where we will have
solid cash flow and will be making a profit by
the end of the year. To have two such highly
regarded companies buying our ore is testament
to the quality of our pr oduct and our
ability to deliver on schedule. The Big George
West Timor mine is ready to produce and we
are full steam ahead with the development
and construction of our smelter at Kupang.”
Bracken is in negotiations with construction
companies for the design and build of the
manganese smelter at the pr oject, which is
35km from Kupang port. Construction of the
smelter is on track to begin by June 2013.
ALTURA Mining has more than doubled its
tenure holdings in Indonesia’s South Kalimantan
by acquiring two additional mining per -
mits alongside its flagship T abalong coal
project. The acquisition brings Altura’s holdings
to 17,000 hectares of high value coal
targets in the region, with an 80% shar e of
each project secured by the company.
After shareholder approval and due diligence
on the new projects the expanded Tabalong
project will comprise five mining permits. This
latest acquisition move comes just weeks after
Altura acquired another neighbouring mining
permit which expanded the Tabalong site by
3250 hectares. On completion of the acquisi-
Bracken signs manganese offtake deals
The 8206 hectare Big George project is one
of the company’s six mine licences in W est
Timor, which host a combined r eserve of
more than 300 million tonnes. Bracken has
all mining approvals as well as full gover nment
and community support.
The Queensland-based company has
made a number of major strategic decisions
recently in a bid to diversify its assets. It has
migrated onto the open market board of the
Frankfurt Stock Exchange and signed a 150
million stock placement with private Australian
resource company, In Minerals. This deal
will result in an Aus$17 million cash and mining
equipment payment as well as In Mine-
tion, the expanded Tabalong Coal Project JV
will comprise five IUPs.
Tabalong is the company’s advanced coal
project which is awaiting mining appr oval
with production to then be fast-tracked for
operations to commence later this year. The
operation will consist of a surface mining
and benefiting product delivering it to an oftake
depot on the Barito River, about 100km
west of the mine site.
The project covers 63sqkm in the T anjung
formation, which is known for its high energy ,
low ash and medium sulphur coal seams. This
region has been the target of intense coal exploration,
with several high grade coking and
Indonesia
rals’ tungsten ore mining rights in Queensland,
which boasts an inferred resource in excess
of 1 billion tonnes. Luke Bracken says
Bracken’s migration to the open market is the
next step towards production. “I am very excited,
we are making progress and moving
Representatives of Bracken International Mining with Chinese officials at the signing of offtake agreements for
manganese from West Timor.
upwards and onwards to become an efficient
market supplier of high-grade manganese
ore. I am ecstatic at completing the deal with
In Minerals ahead of schedule to diversify
Bracken International Mining beyond Indonesia
and beyond manganese.”
The company has also opened two new regional
offices – one in Jakarta, Indonesia and
the other in Qingdao, China.
Altura acquires additional coal permits
high energy thermal coal deposits identified.
Altura says Tabalong’s location lends itself
to the satellite development of other mining
permits that have the potential to be operated
simultaneously to provide increased tonnages
as well as blended coal pr oducts. The
company says its latest acquisitions could be
amalgamated into the development.
Tabalong has a JORC-compliant r esource
of 13.4 million tonnes of high grade thermal
coal, however Altura is aiming to increase the
resource during its next phase of exploration.
The initial operation is expected to annually
produce up to 400,000 tonnes and ramp up
to 740,000 tonnes.
July/August 2012 | ASIA Miner | 29

Indonesia
Challenger Deep MoU for thermal coal marketing
Challenger Deep Resources’ Tabang Coal Project is in East Kalimantan, close to infrastructure.
CHALLENGER Deep Resources has signed
a Memorandum of Understanding (MoU) with
an Indonesian marketing company to pr omote
thermal coal from its Tabang project to
the domestic market. The MoU will see Challenger
and PT Surya Dinamike Letsari (SDL)
develop a marketing plan for the East Kalimantan
project and negotiate formal coal
sales ahead of production start-up in 2013.
SDL will secure domestic buyers for the
coal and advise Challenger on the best pri-
CANADIAN exploration company Souther n
Arc Minerals has increased its share in two
Indonesian projects to 90%. The company
acquired an extra 5% inter est in both the
West Lombok and West Sumbawa (Taliwang)
projects and has entered into a cooperation
agreement with the Regency of W est Sumbawa
to ensure collaboration on the Taliwang
project. Southern Arc will pay its Indonesian
partner PT Permata Puri Mega US$1.5 million
and 2.25 million shares for the additional interest
in both projects.
Southern Arc’s president Dr Mike Andrews
says, “Recognizing the geological potential of
the West Lombok and Taliwang projects, we
have increased our interest to 90% and secured
the support of the local government at
30 | ASIA Miner | July/August 2012
cing parameters for different production scenarios
associated with Tabang. The company’s
established domestic customers include
PT Perusahaan Listik Negara, which owns
dozens of coal-fired power stations.
Challenger is developing the 2900 hectare
Tabang project in three phases, starting with
the construction of a short-haul road and jetty
facility on the Belayan River for pr oduction
from the ATRP property. The next phases will
add infrastructure and development of the
Southern Arc increases interest in projects
both projects as a 10% equity partner . This
emphasizes our vision of the gr eat potential
for both epithermal gold and copper -gold
porphyry mineralization at both projects.”
The West Lombok pr oject covers a
21sqkm structural corridor of mineralization
and alteration hosting porphyry copper-gold,
high sulphidation gold-copper and epithermal
gold deposits. Two of the prospects on the
property host a combined pr oven strike
length of more than 21km of mineralized epithermal
breccias. Southern Arc has completed
more than 22,000 metr es of drilling
focused on the epithermal gold mineralization,
confirming high-grade events and identifying
several high-grade shoots. The
company has also completed an airbor ne
Pelangi, CBM and IP properties.
The company’s president Ranjeet Sundher
says, “This MoU is an important first step in
the sales planning component of the overall
Tabang project development plan. This relationship
is focused primarily on the lower heating
value coal component of our project and
on domestic consumption, which pr ovides
the cornerstone of our initial development
plan. Moving to this stage in the process also
demonstrates our confidence in this pr oject
and in our marketing partner, SDL.”
Challenger has also determined that T abang
has favourable coal economics for export
to China and India, while supplying the
increasing Indonesian domestic power market
as the local economy grows.
The Tabang coal pr oject comprises four
properties in close proximity. ATRP and Pelangi,
are under formal pur chase contracts
while CBM and Inhuwa Purba (IP) ar e under
exclusive MoUs. The pr oject takes in the
highly prospective Balikpapan formation
which is known to host large r esources of
coal in the CV 4000-6000 Kcal/kg range.
ATRP is the most advanced of the Tabang
properties and is currently undergoing the mining
permit application process. A feasibility
study has been submitted to regulatory authorities
and the envir onmental study is nearing
completion. If both of these studies are
approved, a mining permit may be issued in
coming weeks.
geophysical survey at 50-metre line spacings
to define both near-surface and buried copper-gold
porphyry targets, identifying 17 porphyry
targets on the property.
Earlier this year Souther n Arc initiated an
exploration program to drill porphyry targets
in the south of the property, in areas without
forestry designation. Once the company r eceives
the Pinjam Pakai permit it will resume
full-scale exploration.
Exploration activities on West Lombok in
the first quarter of 2012 have focused on
Pelangan and Mencanggah prospects. Drilling
to date has confirmed the company’ s
geological model and identified three highgrade
shoots that will be explor ed further
with the next phase of drilling.

Australia
Spotted Quoll exceeds production expectations
AN internal review of the initial performance
of Western Areas’ Spotted Quoll under -
ground operations in Western Australia has
exceeded expectations, with the company’s
production schedule boosted to 25,000 tonnes
of nickel-in-concentrate for the 2011-
2012 financial year.
After seven consecutive quarters of consistent
operational performance, Western Areas
has also increased its total sales to 27,000 tonnes
of nickel-in-concentrate for the 2012 financial
year. A great portion of this total will come
from the record sales of 8154 tonnes of nickel-
in-concentrate in the March quarter. The company
says the latter half of the financial year has
performed 25% higher in sales than the first
half, due to improved shipping logistics with reduced
container turnaround time.
Total mine production in the March quarter
was 7602 tonnes of nickel-in-ore at an average
Western Areas’ Flying Fox nickel mine is part of the Forrestania project in Western Australia.
MINING finance and production services company
Metals Finance has secured the services
of US-based consultants The Dow Chemical
Company to provide expertise as well as technical
and process engineering for the use of
separation technology at the Lucky Break nikkel
project in Queensland. The project will be
used as a pilot for identifying pr ocess improvements
which may be applicable to the treatment
of global nickel laterite projects.
Dow’s business unit Dow Water & Process
Solutions (DWPS) has agreed to provide engineering
expertise for the ion exchange resin
(IER) PLS separations technology at Lucky
Break and other future lateritic nickel projects.
DWPS global business development manager
Yulee Newsome says the company is positive
about developing value-cr eating
solutions for the mining industry . “Dow is
32 | ASIA Miner | July/August 2012
grade of 4.7%. Total nickel-in-concentrate from
the mill was 6266 tonnes with an average r ecovery
of 93%. Underground mine optimization
studies continue for Spotted Quoll, with
results expected soon. The company hopes to
identify potential increases in annual mine pro-
Lucky Break to pilot nickel technology
committed to innovation and Dow continues
this commitment by providing advanced IER
PLS separation technology that allows our
customers to develop answers for mining
challenges while improving their bottom line.”
Metals Finance says it is encouraged by the
significant cost benefits that can be achieved
by using Dow’s ion exchange resin technology
compared with traditional means of
metal recovery. “The technology is a key
component in the novel flow sheet approach
being taken by MFC to develop Lucky
Break,” says managing dir ector Tony Treasure.
“We are proud to team with Dow for enhanced
development of metal r ecovery
processes. This agreement is the first step in
developing a long-term, strategic relationship
between MFC and Dow.”
The Lucky Br eak tenements, which ar e
duction from a Life of Mine average of 10,000
tonnes up to 15,000 tonnes.
Spotted Quoll is 6km south of the company’s
primary deposit within the Forr estania Nickel
Project known as Flying Fox, which is 400km
east of Perth. Western Areas’ managing director
Dan Lougher says he is pleased to be able
to confirm the company expects to r each record
performance levels. “Our assets continue
to perform well on the operational fr ont, our
margins continue to be strong and we shortly
expect to turn in our eighth consecutive quarter
of consistent production results.
“The quality of our assets allows us to r emain
profitable throughout the nickel price
cycle, and that remains true today. We continue
to expect to meet our corporate goals
and invest in futur e production upside
through near mine exploration in Forrestania,
further afield in Australia and through our Finnish
and Canadian assets.”
The company also completed the purchase
of Kagara’s nickel assets for Aus$68 million
which includes the high grade Lounge Lizard
deposit and almost 300sqkm of exploration
tenements at Forrestania.
The open pit at Spotted Quoll was completed
in February 2012, and has deliver ed
28,502 tonnes of nickel-in-or e, which was
well above the initial or e reserve estimate of
19,900 tonnes.
owned by Metallica Minerals, ar e west of
Townsville. Metals Finance is determining the
feasibility of operating the mine and associated
processing plant and has already detailed the
engineering requirements, secured sources for
the equipment and is in negotiations to confirm
funding. The company says it could be in full
production within a year of receiving approval.
Metals Finance develops mineral assets in
partnership with other exploration and mining
companies, using the experience of its executives,
board and consultants on geologically
defined r esources to establish
appropriate treatment processes, to undertake
detailed feasibility studies and to operate
projects. It is currently working with two ASXlisted
partners at Lucky Break in Queensland
and Barnes Hill in Tasmania. The company is
also seeking new opportunities.

TEN new targets will be drilled by White Clif f
Minerals at its Lake Johnston and Lake Percy
nickel projects in Western Australia. The Maggie
Hays-style nickel sulphide targets wer e
identified by a geophysical survey carried out
by the company at Lake Johnston.
The company says there are several targets
that occur within ultramafic sequences
on or near the basal contacts with sedimentary
units at depths between 80 and 350
metres, which is the most common position
for nickel sulphides to accumulate. Diamond
drilling is scheduled to begin at the
targets, as none of them have been previously
drill tested.
Lake Johnston is about 480km east of Perth
and is made up of 16 tenements over
1416sqkm. Known mineralization across the
project area includes nickel sulphides, high
grade gold, copper rich volcanogenic sulphides
and minor base metals. The pr oject has
total widespread nickel mineralization greater
than 0.5% and extensive potash mineralization
in lake systems with natural brine solutions of
up to 0.5% potassium.
Previous drill results at the site include 8 metres
@ 0.98% nickel sulphide and 18 metr es
@ 0.43% nickel sulphide. Historical gold assays
include 1 metr es @ 8.68 grams/tonne
and 3 metres @ 1.72 grams/tonne.
White Cliffs’ managing director Todd Hibberd
says, “The additional nickel sulphide targets
generated by the recent survey are outstanding
exploration targets. The local geology for
the Maggie Hays nickel sulphide-style targets
NEWLY-listed exploration company Riedel Resources
has completed significant geological
sampling and mapping across its Western Australia
properties. The company was incorporated
in April 2010 to explore and develop gold
and base metals mineralization in Western Australia,
and acquired a portfolio of early stage
and advanced properties from ADX Energy.
The highlights of its Marymia exploration
program through the March quarter include
the confirmation of widespread multi-elemental
soil anomalies with peak values of
452ppm copper, 1280ppm nickel and
135ppm arsenic. During the pr ogram 2304
soil samples were collected and 270sqkm of
at Mt Gordon and Lake Percy is strikingly similar
to the volcanic sequence that hosts the
Maggie Hays and Emily Anne nickel deposits.
“The Lake Johnston lease package contains
extensive mafic to felsic volcanic sequences
and ultramafic units that have the
potential to host a major new nickel sulphide
discovery,” he says. The geophysical survey
conducted by the company was carried out
at the Mount Gordon prospect which is 20km
south of Norilsk’s operating Maggie Hays and
geological mapping completed.
Rock chip assays at the site have also confirmed
mineralization grades of up to 56.6
grams/tonne gold and 45.9% iron. High priority
targets have been identified at Marymia
following reinterpretation of historic drill r esults
including 5 metres @ 4.87 grams/tonne
gold from 239.24 metres and 3 metr es @
9.53 grams/tonne gold from 51 metres.
The Marymia project is in the pr ospective
Archaean and Pr oterozoic-age terranes of
Western Australia, about 180km northeast of
Meekatharra within the Mary Mia dome. The
project area is made up of two large contiguous
exploration licences which overlie the
Australia
White Cliff to drill new nickel targets
White Cliff Minerals’ prospects in Western Australia are near two nickel mines operated by Norilsk.
Emily Anne nickel mines.
White Cliff’s 70sqkm Lake Per cy project
contains 20km of strike length of potential
nickel-bearing cumulate ultramafic rocks within
two separate units. The wester n unit
hosts several nickel-copper geochemical anomalies
of 800ppm nickel and 300ppm copper,
while the central unit has not been tested
for massive sulphides or adequately drilled,
hence the significant potential for massive
sulphide mineralization.
Riedel identifies gold, copper and nickel at Marymia
Baumgarten greenstone belt.
Riedel’s Marymia is 50km northeast along
strike from Sandfire Resources’ Doolgunna
copper-gold project at DeGrussa, which has
an indicated and inferred resource of 10.67
million tonnes @5.6% copper , 1.9
grams/tonne gold and 15 grams/tonne silver.
The company is yet to test its Cheritons
gold prospect for potential nickel mineralization.
This project is about 50km southeast of
Marvel Loch in W estern Australia’s eastern
goldfields, and just 2km south of the Cheritons
Find deposit which has an estimated inferred
resource of 1.4 million tonnes @ 2.4
grams/tonne gold.
July/August 2012 | ASIA Miner | 33

Australia
Tasman secures Rio Tinto farm-in for Vulcan
PERTH-based Tasman Resources has secured
a conditional farm-in/joint ventur e
agreement with Rio Tinto Exploration regarding
its Vulcan iron oxide-copper-gold-uranium
(IOCGU) pr ospect within the Lake
34 | ASIA Miner | July/August 2012
Torrens project in South Australia. Rio has
paid Tasman Aus$1 million as an execution
payment for the new agr eement which replaces
the conditional farm-in/joint venture
agreement of October 2011.
Tasman’s wholly-owned exploration licence
is 30km north of BHP Billiton’s Olympic Dam
project. Rio will pay a total of Aus$10 million
to Tasman on the condition that half is spent
on an exploration program within 12 months
of the agreement’s execution. The terms retain
the original commercial conditions governing
the initial exploration program and Rio’s
obligations and rights.
The companies have also agreed to extend
the period by 6 months to allow for one r emaining
condition to be satisfied. T asman
must secure reasonable access for the purposes
of conducting initial exploration over a
specific area of the tenement over which the
company has previously not secured Aboriginal
heritage access.
If Tasman secures the access within the
six months, Rio Tinto will pay the company
Aus$9 million for the initial program. However,
if the condition has not been met Rio
has options to extend the time period and
can decide whether to fund a 2400 metr e
drill program on the heritage cleared areas
of the Vulcan prospect at a cost of Aus$1
million and then fund a further 2400 metr e
drill program after two years at a cost of
Aus$2 million. Rio could elect to ear n between
55% and 100% of the pr oject by
spending another Aus$32 million within the
next five years.
The Lake Torrens project covers more than
2000sqkm adjoining the Olympic Dam deposit
in central South Australia. In late 2009 Tasman
began its initial drill pr ogram at Vulcan
with strong chlorite-sericite altered basement
volcanics and IOCGU mineralized hematite
breccias intersected. Highlights of the eight
holes drilled include 7.8 metr es @ 1.21%
copper and 0.35 grams/tonne gold and 1.37
metres @ 0.91 kg/tonne uranium.
Tasman’s executive chairman Gr eg Solomon
says, “Individual sections of these holes
have returned assays for copper, uranium,
gold, cerium and lanthanum that are equivalent
to the higher-grade ore mined at Olympic
Dam, confirming that the system has the potential
to produce high-grade mineralization.
“The results confirm Vulcan hosts mineralization
of the same style and of comparable
thickness to that which makes up a
very large portion of Olympic Dam and with
further investigation could pr ove to be a
major deposit itself.”

OZ Minerals has completed the sale of its
Cambodian gold assets to Renaissance Minerals
for the equivalent of Aus$17.8 million
in cash, shares and options along with possible
future payments of a further $22.5 million
on achievement of certain milestones.
The acquisition includes the Okvau deposit
which has a JORC-compliant indicated and
inferred resource of 729,000 ounces.
Okvau is at present the major asset in an
1100sqkm tenement package which forms
the core of a prospective new intrusive related
gold pr ovince in the easter n region of
Cambodia. There are a number of other prospects
within the package at which varying
amounts of exploration have taken place.
OZ Minerals recently established a resource
at Okvau of 12.6 million tonnes @ 1.8
grams/tonne gold. There are 7.8 million indicated
tonnes @ 2.03 grams/tonne for 508,000
ounces and 4.8 million inferred tonnes @ 1.44
grams/tonne for 221,000 ounces. Mineralization
at remains open at depth and along strike.
Cambodia remains largely unexplored and
has significant potential to host world-class
Renaissance buys Oz Minerals assets
gold deposits. Renaissance is excited about
the acquisition and believes it has potential to
be a company-maker. OZ Minerals is a cor -
nerstone investor and the largest shareholder
in Renaissance. OZ Minerals’ managing director
and CEO Terry Burgess says, “OZ Minerals
sought to develop and operate a mid-tier gold
Renaissance Minerals has secured the Cambodian gold assets of OZ Minerals.
Cambodia
mine in Cambodia and to this end took its
Cambodian interests from a grassroots project
to an identified gold r esource. However after
review, we have concluded this pr oject does
not fit within our strategy with regard to scale
in relation to the commodity and our overall
preference for mid-tier copper projects.
July/August 2012 | ASIA Miner | 35

Papau New Guinea
Maiden Mambare resource exceeds expectations
REGENCY Mines has announced a maiden
JORC resource at its Mambare nickel project
of 95.1 million tonnes. This combined indicated
and inferred resource is graded 0.96% nickel
and 0.08% cobalt with 912,595 tonnes of contained
nickel at a 0.6% nickel cut-off grade.
The maiden resource estimate has exceeded
expectations by thr ee times what the
company had forecast, only represents a very
small part of the licence area and the grades
are better than expected. Independent r esearch
company VSA Capital is also surprised
by the announcement, having estimated
the project to host 30 million tonnes after discussions
with the project manager and site
visits in November 2011.
VSA’s chief executive Andrew Monk says
there is also much scope to increase the project
tonnage as the r esource estimate has
been taken only fr om two areas within the
Mambare site. “This 95 million tonnes is just
36 | ASIA Miner | July/August 2012
the beginning and we expect that further delineation
drilling on the plateau will significantly
increase the resource estimate.”
Five drill rigs completed a 200 hole exploration
program along the North Ridge Extension
Zone last year.
Regency chairman Andrew Bell says, “Our
Mambare project is, we believe, a world-class
resource and will make a world-class project.
With the benefit of the Dir ect Nickel processing
technology, in which we have invested
so much of our money and cr edibility, we
think we can become among the world’s lowcost
large-scale producers.”
He says that to have an estimate at 95 million
tonnes with less than 3% of the plateau
drilled leads the company to believe Mambare
could be one of the world’s largest single
nickel laterite deposits.
Mambare is a joint ventur e with Sydneybased
Direct Nickel (DNI). It is about 120km
Significant assay results from Mt Kare
THE Mt Kare gold and silver project in Papua
New Guinea’s Central Highlands is likely to
become Indochine Mining’ s major priority
after assay results from a further thr ee drill
holes returned very high grade mineralization.
The intersections are among a set to be sent
to Perth for metallurgical test work while assays
for 25 additional holes are still pending.
Highlights of the results include 17.7 metres
@ 100.3 grams/tonne gold and 134
grams/tonne silver from 59 metres including
4 metres @ 420 grams/tonne gold and 170
grams/tonne silver from 67 metres.
Indochine’s chief executive officer Stephen
Promnitz says, “These r esults support our
confidence in the potential of the Mt Kar e
gold/silver project. As each new drill hole
comes in, our confidence is elevated further.”
Mt Kare is one of the largest near-term gold
projects in Papua New Guinea. It is 15km
from one of the world’s biggest gold mines,
Barrick’s 28 million ounce Porgera mine,
which has produced more than 500,000 ounces
of gold each year since 1990. Indochine
says Mt Kar e shares similar geology , ore
types and structures of mineralization to Porgera,
which has established major r oad and
power infrastructure.
Checking core samples from Indochine’s Mt Kare gold and silver project.
After acquiring the project in June 2011, the
company is planning the development of a
large open cut mine to pr oduce up to
150,000 ounces of gold and silver each year.
Ongoing drilling at the site is expected to improve
the quality and increase the current resource
for inclusion in the pre-feasibility study,
which is due for completion by August.
Initial mine plans and scheduling have been
from the deep water port of Oro Bay and covers
242sqkm. Regency invested $6 million
in DNI in 2010-11 to become a significant
shareholder, as the company’s advanced lateritic
tank leaching treatment technology offers
a unique low capital and operating cost
treatment process for both limonites and saprolites.
A $5.4 million pilot plant has been
constructed at Perth in Western Australia to
test DNI’s technology.
“The Direct Nickel processing technology
for lateritic nickels is a disruptive technology
that will change the nickel mining industry .
We intend to be leaders in that change,”
says Andrew Bell.
If the pilot plant is successful on a commercial
scale, the technology will dramatically reduce
the cost of pr ocessing nickel laterite
deposits. The joint ventur e aims to commence
production of an annual 20,000 tonnes
of nickel at Mambare in 2015.
completed with draft optimized pit shells and
basic infrastructure plans. The environmental
impact, social impact and initial tailings studies
are also under way.
Indochine announced an initial 2.1 million
ounce gold equivalent JORC-compliant r esource
estimate for the deposit in January this
year which confirmed the 2007 evaluation of
the gold-silver mineralization at the prospect.

Substantial increase in Yandera measured resource
A mineralized rock sample from Yandera
Examining core from the Yandera project.
A HOLD-UP in finalization of funding for the
vessel to be used at Nautilus Minerals’ Solwara
1 project may result in a delay to the start
of operations at the company’s first development
project. Nautilus and its strategic partner
Harren & Partner have been negotiating terms
of third party finance for the pr oduction support
vessel which will be owned and operated
by the joint venture company. However, Harren
& Partner are no longer able to contribute the
full amount of equity to the JV which has r esulted
in the delay to the vessel build.
As the first company to explor e the ocean
floor off Papua New Guinea for polymetallic
seafloor massive sulphide deposits, Nautilus
has been making good progress at Solwara 1,
with development 40% complete. It aims to
produce copper, gold and silver from the site.
“Progress has continued thr oughout the
MARENGO Mining has updated the resource
at its Yandera copper-molybdenum-gold project,
further cementing the pr ogress of the
project’s development. At a 0.25% copper
cut-off, the resource has a measured and indicated
362 million tonnes @ 0.43% copper
compared to 359 million tonnes in the 2011
figures, and a further inferred 218 million tonnes
@ 0.37% copper for 1778 million pounds
of contained copper.
There are also confirmed areas of elevated
gold and molybdenum grades, with a measured
and indicated 199 million tonnes @ 0.17
grams/ tonne gold and 532 million tonnes @
0.01% molybdenum.
The substantial increase in the measured
resource and grade at the site was prepared
from metallurgical test work by consultants
Ravensgate, using assay r esults from 465
diamond drill holes totalling 145,335 metr es
which were drilled in 2011. The company
says the significant conversion of copper resources
to the measured category with improved
grade and the conversion of
additional indicated resources from the inferred
category is of particular note.
Marengo’s managing director Les Emery
says, “The resource update supports the previously
stated goal of achieving a minimum
operating life of at least 20 years. The mea-
first half of 2012 on works related to the project’s
development with work continuing on
the seafloor production tools. Considerable
effort was also spent on the negotiation of a
landmark offtake agreement with Tongling
Nonferrous Metals Gr oup,” says Nautilus
chief executive officer Stephen Rogers.
The binding agreement with Tongling was
signed in May for up to 4 million tonnes of
material from the Solwara 1 deposit in the
Bismarck Sea. The three year contract provides
for T ongling to pur chase between
900,000 tonnes and 1.3 million tonnes of material
from the deposit each year, from the first
delivery which is scheduled to take place in
quarter four of 2013.
Tongling will import the product into China
for processing through its facilities in the city
of Tongling near the Yangtze River. The cop-
Papau New Guinea
sured resource category has incr eased by
more than 100% and substantial additional
resources have been upgraded fr om the inferred
to indicated category.
“Furthermore, areas of higher grade copper
have been identified that, with the advantage of
topography, can potentially be targeted for the
initial years of possible production,” he says.
A review of the tailings options for the completion
of the feasibility study has led Marengo
to go forward on the basis of a combined rock
waste dump and tailings storage facility . It will
be situated close by the Y andera project and
processing areas. The company says this will
allow the copper concentrate being transferred
by pipeline to port at Madang to follow existing
infrastructure corridors.
Marengo is also continuing its exploration
program at the Dirigi prospect, with results for
the first of a 15 hole program already received
confirming near surface mineralization including
3 metres @ 0.23% copper, 211ppm molybdenum,
0.12 grams/tonne gold and 12.76
grams/tonne silver.
Initial fieldwork has commenced at the
company’s Queen Bee area which is about
15km northwest of Yandera. Historical work
shows skarnoid mineralization at Queen Bee
and the exploration team is hoping to identify
mineralized bodies.
Funding hold-up may delay Solwara 1
per concentrate will then be smelted at the
local industrial complex, with the pur chase
price determined on the quality of the copper
concentrate produced.
Further value may be realised through a 50-
50 profit sharing scheme based on incremental
by-product revenue realized in China,
including gold bearing pyrite. Material from the
process can be roasted in China to produce
gold and sulphuric acid and the remaining calcine
may be sold to cement manufacturers or
as iron ore fines. With minimal waste Tongling’s
process brings significant benefits consistent
with Nautilus’ commitment to minimize
environmental impacts.
The agreement also includes a mechanism
for an early payment of 90% of the
price upon loading of the export vessel in
Papua New Guinea.
July/August 2012 | ASIA Miner | 37

Central Asia
Premier Gold starts Cholokkaindy exploration
PREMIER Gold has started its 2012 exploration
program on the Cholokkaindy licence
in the Kyrgyz Republic. The work has
started with an extensive soil sampling program
and further trenching while diamond
drilling will be undertaken later with the aim
of helping establish a geological r esource
on the licence in 2013.
Field work on Premier Gold’s Cholokkaindy prospect in the north of the Kyrgyz Republic.
The company expects to drill 1500 metres in
the target area of the Talbaital prospect, as well
as the Jarkonush pr ospect if the season allows.
Premier Gold plans to drill a minimum of
six holes to depths of up to 250 metres and intends
to report initial results from core obtained
from these prospects by the fourth quarter.
EXPLORATION company Hansa Resources
has finalized acquisition of the Zhumba
Gold Project in the Kokpektinsky and Ulansky
districts of Easter n Kazakhstan.
Zhumba was discovered in 1871 as a placer
deposit and since then ther e has been
ongoing small-scale production in the r egion.
In 1984-89 a local company mined the
Yuzhnaya zone by open pit to a depth of 70
metres producing 60,000 tonnes of ore with
an average grade of 5-6 grams/tonne gold.
Zhumba consists of two claims covering
259.76sqkm and is in the southeast continuation
of the West Kalba gold belt hosting
a number of producing gold mines including
the world-class Bakyrchik deposit. The regional
centre of Ust Kamenogorsk is 200km
from Zhumba along a paved road.
Zhumba is an orogenic gold system characterized
by intensive multi-stage mineralization
within an area of 2km by 4km with
three main styles of mineralization present.
38 | ASIA Miner | July/August 2012
The program is designed to extend and
define the length and depth of the known
surface mineralization and support the correlation
of mineralized structures across the
targeted area. Trenching and soil sampling
in priority ar eas has alr eady begun. The
combined work will indicate whether the
Talbaital prospect extends into Jarkonush
and more precisely map mineralized zones
over the total licence area.
A bulldozer has been preparing access for
the drilling rig, which is expected to arrive
during July. The bulldozing process is also
designed to expose new areas of mineralization.
The drilling program will be underta-
Hansa acquires Zhumba gold property
Historically, gold-quartz-sulphide veins
have been identified from 1 metre up to 6.5
metres thick with an average ar ound 1.5
metres and strike lengths up to a few hundred
metres.
Gold has also been identified in disseminated
gold-sulphide mineralized zones which
are tens of metres wide. Due to an historical
focus on the narrow veins style, the broader
disseminated style of mineralization has not
been systematically tested. Gold is associated
with pyrite and arsenopyrite. A zone of
weathering and oxidation above primary sulphide
mineralization has been developed at
the property to a depth of 30-40 metres and
has not been systematically explored.
In 1985, the Soviet Geological Survey drilled
four diamond holes and completed 50
trenches which delineated a total of 26 mineralized
bodies at cut-off of 2 grams/tonne
gold. The survey estimated a r esource in
Russian C1 category, for five mineralized
ken by Tamerlan, a highly qualified contractor
with extensive operating experience in
the Kyrgyz Republic.
Premier’s chief operating officer Richard
Nolan says, “We are pleased to start this
season’s exploration program which includes
the first drilling on Cholokkaindy , an
area in the Tien Shan gold belt which has a
history of producing gold mines. By the end
of this season we expect to be in a position
to map out the 2010 and 2011 surface
sampling mineralization into structures and
mineralized veins.
“This is an exciting time for Pr emier Gold
as we move in to the next stages of developing
the prospect which will provide a maiden
geological resource by 2013, the start
of the process of proving up a commercial
scale resource.”
Earlier this year the company changed its
name from Premier Management Holdings
to Premier Gold Resources and began trading
on the AIM market of the London
Stock Exchange. It also completed the acquisition
of Central Asia Resour ces Ltd,
bringing with it the Cholokkaindy licence,
which covers 24sqkm and is about 80km
west-southwest of Bishkek.
bodies of 192,000 ounces of gold at an
average grade of 4.4 grams/tonne, which
were described as steeply dipping, an average
of 1.5 metres wide and 200-600 metres
long. This historical estimate is based
on reports by the Soviet Geological Society
between 1984 and 89. The C1 category is
broadly similar to the CIM inferred definition.
Initial work planned by the T oronto and
Frankfurt listed Hansa will include compilation
of historical data, reconnaissance sampling
of thr ee styles of mineralization
including metallurgical testing, geological
and structural mapping, r estoration and
sampling of exploration adit, sampling of
open pit walls and further delineation of mineralization
geometry by means of tr enching
and channel sampling.
Hansa has concluded an agr eement with
Altynor Mining, a private BVI company, for the
effective acquisition of 81% of the shar es of
Altyn-Komir Ltd, the owner of Zhumba.

PLANT number 3 of Stans Energy’s Kashka
Rare Earths Plant in the Kyrgyz Republic will
be ready for operational testing by mid-July.
By August 30 the plant is expected to be
ready to produce its first product – heavy rare
earth oxides of dysprosium, gadolinium and
erbium to 99.99% purity.
The three heavy rare earths are to be recovered
from loaded ion exchange resins located
in the circuit since plant operations were
suspended in the early 1990s. Since the acquisition
of the plant in May 2011, Stans has
undertaken an extensive refurbishment program
at plant number 3. Although this plant
had not operated for nearly 20 years, much
of the production equipment has remained in
place and is ready to be restarted.
Stans Energy’s president and CEO Robert
Mackay says, “We are extremely pleased with
the progress made at plant number 3.
Through the course of our renovation, and in
consultation with our technical advisors at
VNIIHT (The Russian Resear ch Institute of
Chemical Technology), we discovered the potential
for r ecovering nearly two tonnes of
Stans ready for rare earth tests at Kashka
Stans Energy Corp has a number of rare earths and uranium properties in the Kyrgyz Republic.
mixed rare earths oxides fr om concentrate
that remains in the holding tanks.
“The concentrate consists of dyspr osium,
gadolinium, samarium, yttrium, holmium, ytterbium,
erbium, thulium and lutetium. This
test run will demonstrate the operational viability
of the Kashka plant. This validation of
our proven metallurgical processes and pro-
Central Asia
duction assets will solidify our position as one
of the front-runners to rare earth oxide production
outside of China.
“In this period of transition from project development
through infrastructure build-out,
and ultimately production readiness, Stans
will continue the evaluation of other potential
sources of concentrates.”
July/August 2012 | ASIA Miner | 39

Malaysia
Sokor gold resources increase 35%
ONGOING exploration at CNMC Goldmine
Holdings’ Sokor Gold Project in Kalantan state,
Malaysia, has led to a 35% increase in gold resources.
The 103,300 ounce increase means
that the producing Sokor operation now hosts
503,000 JORC-compliant ounces of gold.
CNMC, which is the first Catalist-listed gold mining
company on the Singapore Exchange Securities
Trading Limited, owns 81% of the
Sokor project. There are four identified gold deposits
on the 10sqkm pr oject - Manson’ s
Lode, New Discovery, Sg Ketubong and Rixen.
The company announced the pr evious resource
of 372,700 ounces on June 30, 2011,
and since then 21 holes have been drilled for a
total of 1746.03 metres at Rixen and four holes
for a total of 895.93 metr es at Ketubong. It is
the company’s second resource update since
its listing on October 28, 2011, with r esource
estimates steadily increasing at a healthy pace.
The latest update has been compiled by
CNMC’s independent r esource consultant
Optiro using a 0.3 grams/tonne gold cut-of f
for the Rixen deposit and a 0.5 grams/tonne
cut-off for the three other deposits.
40 | ASIA Miner | July/August 2012
In total the four deposits have JORC-compliant
resources of 8.59 million tonnes at a
grade of 1.7 grams/tonne in the measur ed,
indicated and inferred categories for a total of
503,000 ounces. Of these there are 630,000
tonnes @ 3.3 grams/tonne for 73,000 ounces
in the measured category, 2.8 million tonnes
@ 1.5 grams/tonne for 149,000 ounces in the
indicated category and 5.16 million tonnes @
1.5 grams/tonne for 281,000 ounces in the
inferred category.
CNMC Goldmine Holdings’ executive director
and chief executive officer Chris Lim says,
“We are very happy with our latest milestone.
CNMC places great emphasis on getting high
standard JORC-compliant reports that can
withstand independent scrutiny. In addition,
the further increase in the estimates of gold
resources is a strong testimonial to CNMC’s
beliefs and strategies. We will continue to balance
our exploration activities and gold production
efforts to achieve maximum value.
“While exploration efforts are an important
priority of the gr oup’s strategies to enhance
shareholder value, we are also taking steps to
CNMC Goldmine Holdings Sokor project is in the far
north of mainland Malaysia, not far from the Thai border.
enhance our production capacity to produce
more refined gold, and to date, we have pr oduced
more than 3000 ounces of gold.”

MONUMENT Mining was confident of completing
work on the phase III gold plant expansion
at the Selinsing project by the end of June. The
company says the expansion will allow it to
boost annual processing capacity at the pr oject
in central Malaysia to 1 million tonnes.
The facility provides flexible treatment options
for variable ore types. The construction
budget totalled Can$8 million and the company
estimates pay back from operating cash
flow in three months.
Gold production during the March quarter
was 10,676 ounces compar ed to 11,904
ounces for the same quarter in the pr evious
fiscal year. The average r ealized price per
ounce of gold sold was $1698 during the
quarter compared to $1,404 for the corr esponding
quarter in the pr evious fiscal year,
an increase of 21%.
Monument’s CEO and pr esident Robert
Baldock says, “The total production decreased
about 9% when compar ed both to the
2011 corresponding quarter and the December
quarter. This was mainly due to lower mill
feed grade and a lower processing recovery
Selinsing expansion to boost processing rates
Construction of the phase III expansion at Monument Mining’s Selinsing Gold Project.
rate. The total production level is expected to
rise when the plant capacity is incr eased as
part of the expansion.”
Along with the lower pr oduction, gold income
decreased by more than $1.865 million
to $8,430,279, net of operating and corporate
expenses. The decline was partially of f-
Malaysia
set by higher gold prices. There was total revenue
of $12.4 million generated fr om gold
sales of 7301 ounces.
Exploration at the company’s properties in
the nine months to March 31 produced 8356
drill metres of which 4566 drill metr es were
completed during the March quarter.
July/August 2012 | ASIA Miner | 41

First sales into domestic market
NSL Consolidated has sold its first iron ore ex-gate into the Indian domestic
market with the Australian-based outfit becoming the only foreign
company to own and operate iron ore mines in India. Construction
and commissioning of the phase 1 Kurnool iron ore dry separation plant
continues on time and budget as NSL finalizes optimization of the process
capable of producing up to 58% iron grade ore.
The first ex-gate sale was achieved in May and NSL expects a gradual
ramp up in production and sales tonnages towards the targeted
phase 1 annual production capacity of 200,000 tonnes during the
third quarter. Final commissioning on the dry separation cir cuit was
expected to occur before June 30.
The phase 2 wet beneficiation plant, which is capable of producing
final product grades of between 58-62% ir on, will be brought into
operation later in 2012 with completion and anticipated sales in the
first half of 2013. This is targeted to incr ease annual production capacity
by an additional 200,000 tonnes to 400,000 tonnes.
The Kurnool stockyard is a 4.85 hectar e industrial site within the
south-eastern Indian state of Andhra Pradesh. As well as the ir on
source at the nearby Mangal mine, the plant is also adjacent to NSL’s
existing Kuja iron mine.
NSL’s managing director Cedric Goode says, “Domestic demand
and pricing for iron ore remain particularly strong and NSL has recei-
Operations at one of NSL’s iron ore projects in southeast India.
ved numerous approaches from industry players seeking to secur e
off-take from the Kurnool project.
“This is a significant milestone for NSL, as we have had to overcome
many challenges to become the first for eign iron ore producer in
India,” he says. “Our journey is only just commencing, as we progress
through completing phases 1 and 2, to utilizing our experience and
actual performance to lift NSL to its desir ed 1.5 million tonne per
annum target by the end of 2014.
“This target will be possible through bolt on wet and dry separation
plants to increase output, together with sourcing additional ore feed
through strategic acquisitions and supply agreements.
“With the increase in funds being allocated to infrastructure projects,
Indian domestic steel production is expected to increase from 77 million
tonnes to 200 million tonnes by 2020. The company looks for -
ward to making its contribution as part of this growth.”
NSL’s plan for phases 3 and 4 incorporates 1.5 million tonnes annual
throughput by the end of 2014 aided by acquisition of a thir d
project, Karimnagar, which has an exploration target of 62 million to
125 million tonnes of magnetite at grades of 20-50% iron. This project
represents a ‘second generation’ for NSL in India with significantly larger
potential than the Mangal and Kuja mines. The company is also
seeking other iron opportunities in India.
India
July/August 2012 | ASIA Miner | 43

44 | ASIA Miner | July/August 2012

LIFE OF MINE
10-12 July, Brisbane, Australia
www.ausimm.com.au/lifeofmine2012
IMA- HSET INDONESIA MINING
July 11-14, Jakarta Convention Centre, Indonesia
www.ima-api.com/event.php?id=41&act=detail
EMERGENCY MANAGEMENT & RESPONSE IN MINING
July 17-19, Perth, Australia
www.beaconevents.com/2012/EmergencyManagement2012
QUEENSLAND MINING AND ENGINEERING
July 24-26, Mackay, Queensland
www.queenslandminingexpo.com.au
8TH COALTRANS AUSTRALIA
August 20-21, Brisbane, Australia
www.coaltrans.com
MINING AND ENERGY NSW 2012 EXHIBITION
August 28-30, Newcastle, NSW
www.miningandengineeringnsw.com.au
DISCOVER MONGOLIA 2012
August 30-31, Ulaanbaatar, Mongolia
www.discovermongoliaforum.com
2012 Calendar
FRONTIER SECURITIES ANNUAL CONFERENCE
September 3-5, Ulaanbaatar, Mongolia
www.frontier-conference.com
2ND ANNUAL DRILL AND BLAST ASIA
September 3-4, Jakarta, Indonesia
www.drillandblastasia.com/Event.aspx?id=731016
KALIMANTAN COAL
September 4-5, Balikpapan, Indonesia
www.immevents.com
2012 AMEC CONVENTION
September 4-7, Perth, Western Australia
www.amec.org.au/events/convention
2ND COALTRANS FINANCING & INVESTING IN COAL
September 5-6, Singapore
www.coaltrans.com
MINING MONGOLIA 2012
September 5-7, Ulaanbaatar, Mongolia
www.miningandconstructionmongolia.com
AUSTRALIA – JAPAN COAL CONFERENCE
October 11, Sydney, Australia
www.tmm.com.au
July/August 2011 | ASIA Miner | 45

By Krishnan Narayan, research analyst for Beroe Inc.
THE global economic downtur n in 2008/09
was terrible for junior mining firms. The global
exploration expenditure dropped from
US$14.4 billion in 2008 to US$8.4 billion in
2009, the largest ever year-on-year drop. During
this period, the share of total exploration
expenditure among junior mining companies
fell to 40%, the first time it had dr opped
below that of the global mining majors since
2004. The challenging market conditions and
turbulent global economy led to a sever e
shortage of equity financing for the mining industry
and junior miners found their ability to
raise funds severely curtailed.
Junior mining companies typically derive
the majority of their funding from investors or
by selling shares and are focused on the discovery
and development of minerals. Further,
their market capitalization is generally less
than US$500 million and they possess only
around one or two pr oducing operations.
Currently, there are more than 1200 junior mining
and exploration companies listed on the
46 | ASIA Miner | July/August 2011
Toronto Stock Exchange (TSX), mor e than
500 on the Australian Stock Exchange (ASX),
more than 150 on the London Stock
Exchange (LSE & AIM) and more than 20 on
the Johannesburg Stock Exchange (JSE).
The vast majority of mineral deposit discoveries
are made by junior mining companies
with the key reasons being a thorough knowledge
of local geology, access to equity and
land, the availability of experienced experts,
and an ability to execute decisions rapidly
since they ar e not bogged down by bureaucratic
red tape. Consequently, a large
number of mineral deposits, which ar e the
world’s future mines, are owned by junior mining
companies. When global mining majors
seek to replace existing reserves or expand
their asset base, a key strategy is to acquir e
low cost, long life deposits fr om juniors or
simply to acquire the juniors. Rio T into’s acquisition
of Riversdale Mining in 2011 for
US$3.9 billion and BHP Billiton’s acquisition
of Athabasca Potash for US$341 million in
There are many challenges facing Australian junior
explorers and miners, who in many ways are the
backbone of the global mining industry.
CHALLENGES FACED BY
Australia’s junior explorers
2010 are examples of this trend.
In 2012, as other industries continue to face
challenges caused by uncertain r ecovery
from the global financial crisis, the demand
for commodities is being driven primarily by
emerging markets. The historic lack of investment
in exploration, coupled with the fact
that established mines have started to run out
is leading to a supply constraint. The demand/supply
equation continues to drive the
prices of commodities and as a result the mining
industry as a whole is emerging financially
stronger and poised for growth.
FINANCIAL ROADBLOCKS
In spite of steady commodity prices, Australian
junior miners face the challenge of financing
their projects. Junior mining shares are still
being traded in sluggish volumes which act as
a deterrent to investors. Banks and shareholders
prefer to invest in better capitalized companies
as long as the global outlook r emains
uncertain. Since junior mining firms need to

provide reasonably continuous news for sustained
investor interest, investors are cautious
of statements that could overstate the potential
or current status of a pr operty. The deals
that do take place are generally of small amounts
for a short time period, ar ound three to
six months. The cheap valuations ar e expected
to cause many juniors to hesitate while
fundraising due to the fear of dilutions. For example,
Austrasia International Mining, an Australian
junior miner, has withdrawn plans to list
on the stock exchange due to challenging
conditions on the financial markets.
The cheap valuations would normally be expected
to lure mining majors but the global
diversified miners such as Anglo American
and Xstrata have substantial capital commitments
for 2012. Further, global mining majors
are riddled with full project pipelines and are
concerned about cost overruns at new pr ojects.
Such a situation is expected to continue
as long as there are doubts regarding a
Greek default, recession in Europe, higher inflation
and unemployment in the industry. It is
expected that the scenario will change once
global macroeconomic activity stabilizes.
Additionally, Australian junior miners face
the challenge of funding and structuring
large infrastructure projects. Historically,
such projects have been either funded by
the government or by infrastructur e investors.
Currently, government spending on
infrastructure has decreased and private investors
demand increased rate of return for
such investments. In such a scenario, global
diversified miners such as BHP Billiton and
Rio Tinto are using their own funds to develop
and control infrastructure, such as road,
railways and port facilities. However, this is
not feasible for smaller mining firms.
INFRASTRUCTURE FINANCE SOLUTIONS
Junior mining companies could look into establishing
Special Purpose Vehicles or participating
in multi-party financing to acquire interests
in mining infrastructure, such as the case of
Port Waratah Coal Handling Services. Another
example of such a scenario is the plan to develop
an open access railway in Pilbara by
Atlas Iron and QR National. It must be noted,
however, that this kind of agreement could become
quite complex since competing user priorities,
tax considerations and issues regarding
control can lead to pr oblems between investors,
ultimately resulting in project delays.
Other ways by which smaller mining companies
could raise finance for infrastructur e
projects include inviting contractors bidding
for infrastructure projects to invest equity in
order to obtain a favorable outcome on their
bids, and considering Private Public Partnerships
(PPP) in order to raise funds.
TAXATION ISSUES
Australia will intr oduce a Minerals Resour ce
Rent Tax (MRRT) from July 1, 2012. The tax,
which applies in full to miners whose profits exceed
Aus$125 million annually, will exempt miners
whose annual profits are below Aus$75
million. The tax will be applied in a phased manner
for companies whose pr ofits lie between
Aus$75 million and Aus$125 million. It is expected
that global diversified miners will account
for 90% of the revenue generated by the
tax. However, it is estimated that smaller mining
companies will be paying a higher effective tax
rate than the larger miners and there is a feeling
among many juniors that there is considerable
scope to provide small and emerging miners
with a higher tax shield, as compar ed to that
provided to larger mining companies.
RECOGNIZING that action is needed to address the decline in minerals
exploration in Australia, the Association of Mining & Exploration
Companies (AMEC) has welcomed the announcement that all Australian
energy and resources ministers have agreed to develop a National
Exploration Strategy to addr ess Australia’s greenfields
exploration challenge. AMEC’s CEO Simon Bennison says, “Australia
is now in competition with every jurisdiction globally that per -
mits and encourages exploration. In fact, Australia’s share of global
exploration is not increasing and we need to ensure we have the inventory
of producing mines for the longer term as well as worldclass
discoveries in both new greenfields areas and under cover.”
Australian Junior Explorers
SUSTAINABLE DEVELOPMENT
Mining companies have a responsibility towards
making their activities more sustainable.
A company’ s policy towar ds the
environment, human rights and indigenous
peoples’ rights, workplace health and safety,
and community helps to build trust
with shareholders, actively managing risks,
maximizing the positive effects of their operations
and embracing inter national best
practices in non-financial matters. The junior
miners spend more money on exploration
than any other sector in the industry.
For the past few years exploration has focused
on remote parts of Australia, where
the enforcement of envir onmental and
other regulations may be inconsistent. As
compared to large mining companies,
which have the experience, policies and resources
necessary to avoid the adverse
environmental and human rights impact,
junior miners can rarely match the capacity
and of larger companies.
INVESTING ABROAD
Australian junior miners are increasingly investing
in exploration in Africa and South
America, and to a lesser extent in Asia. Currently,
there are about 500 Australian mining
and oil projects in Africa and ar ound 200
Australian mining projects in South America.
Though global mining majors alr eady have
operations in both continents, it is expected
that smaller mining firms will increasingly invest
in projects in emerging economies.
The biggest challenges facing Australian
junior miners in setting up investments in
Africa and South America ar e resource
nationalism, domestic disputes and poor
infrastructure.
ACTION NEEDED TO ADDRESS DECLINE IN EXPLORATION
AMEC is the peak national industry representative body for mineral
exploration and mining companies within Australia with mor e than
360 members.
“The development of a National Exploration Strategy is an essential
policy initiative to reverse the current trend in the decline in the
share of greenfields exploration. A crucial element of such a strategy
will be the need to consider mechanisms to encourage investment
in minerals exploration, such as the Exploration T ax Credit model
previously proposed by AMEC which is a hybrid of the Canadian
Flow Through Shares, tax cr edits and dividend imputation
schemes,” Simon Bennison says.
July/August 2011 | ASIA Miner | 47

Australian Junior Explorers
REX RAISES $40 MILLION TO BANKROLL HILLSIDE
REX Minerals has raised $40 million to
bankroll its flagship Hillside Copper Project
within the Pine Point copper belt in South
Australia although North American equities
markets are yet to get on board. The funds
will take Rex through the various feasibility
studies to mine development and first pr oduction
by the end of 2015.
The company says it is surprised by a lack of
interest in the project by North American investors.
Rex’s managing director Steve Olsen
says North America’s equities markets, which
are renowned for their knowledge of gold and
copper markets, have yet to get aboar d one
of South Australia’s biggest success stories.
“Most pleasingly, almost three-quarters of
the commitments in the capital raising came
from our major Australian shareholders and the
48 | ASIA Miner | July/August 2011
remaining quarter from London-based equities
players,” he says. “Yet despite a global roadshow
prior to the raising, we have yet to attract
support from the North American equities markets
– even though Hillside on South Australia’s
Yorke Peninsula is a major copper project
now visibly right on the horizon.”
Rex is set to announce a resource upgrade
during July after r ecent successful shallow
and high grade drill intersections were confirmed
within the pit design ar ea. The current
resource is 217 million tonnes @ 0.7% copper,
0.2 grams/tonne gold and 12.4% iron for
a contained 1.5 million tonnes of copper and
1.4 million ounces of gold.
The project is within the Gawler Craton,
which hosts Australia’s largest historical copper
mines including Olympic Dam, Prominent
Hill and Carapateena. The company has confirmed
copper-gold mineralization on three separate
structures at Hillside.
Pre-feasibility studies at Hillside ar e scheduled
to be completed in the September
quarter, backed up by more regional exploration
with the DFS due for completion in the
second half of 2013.
“Our view remains that Hillside is a very robust
copper project with good margins at low
copper prices so that obviously pr ovides for
significant leverage to any tr end higher in
copper price,” says Steve Olsen.
The discovery of mor e copper in the pit
area is expected to r educe the likely strip
ratio, with the estimated cost of mining cur -
rently at $13.50 a tonne. Pr ocessing costs
are estimated to be $10 a tonne.
MAIDEN POTASH RESOURCE AT KARINGA CREEK
RUM Jungle Resour ces and joint ventur e
partner Reward Minerals have announced a
maiden resource estimate for the Karinga
Creek potash project in the central Northern
Territory. Data from 63 drill holes and 73 brine
samples from the project’s 23 salt lakes has
been included in the estimate, with a total of
530,000 tonnes of potash fr om 30 million
tonnes of brine in 16 salt lakes.
The company says the schoenite r esource,
which is expected to be an intermediate pr oduct
from the brine and then treated to extract
potassium sulphate, totals 1.2 million tonnes.
The estimate has been calculated for the
potassium dissolved in brines contained in
drill sediments. Rum Jungle says the total resource
is an inferred and indicated estimate
as the JORC code was not designed in
connection with minerals dissolved in brines,
meaning there is a greater geological uncertainty
with this estimate than other minerals.
No test work has yet been undertaken to
explore the commercial processing of the brines,
with the company believing potash ex-
Drilling at Rex Minerals’ Hillside Copper Project
in the Gawler Craton of South Australia.
traction is technically feasible. However, Rum
Jungle’s managing director David Muller says
recovery and economics will depend on
many factors including the brine chemistry .
“Halite and/or thenardite could potentially be
produced as by-products.
“Work programs now under way at the site
are expected to significantly increase the size
and confidence of the schoenite brine r esource.
A recent archaeological survey and
new access tracks within the area will help to
expand the resource definition.”

MAIDEN RESOURCE FOR MOOLYELLA PROJECT
LITHEX Resources has announced a maiden
1.9 million tonne inferr ed tin/tantallum r esource
at it Moolyella project in Western Australia’s
northwest. The company owns four
projects in the East Pilbara and Gascoyne regions
totalling about 800sqkm.
Moolyella is about 23km northeast of the
township of Marble Bar and is accessible by
sealed road. The company completed an
auger drill program and volumetric survey of
the large tailing stockpiles at the site earlier
this year, with preliminary metallurgical test
work indicating recoveries of up to 84.7% tin
and 66.3% tantalum. Rock chip test have
also revealed the pr esence of highly anomalous
lithium of up to 1.82%. Results from
a maiden drill program at the Pegmatite and
Elluvial Gullies within Moolyella are expected
to be received soon.
At its Pilgangoora project, Lithex has confirmed
several pegmatite bodies after ground
reconnaissance during the first quarter. The
company’s exploration activities at this site
targeted deposits of tin, tantalum and lithium
and further rock-chip sampling and mapping
has been scheduled.
Pilgangoora incorporates two exploration licences
and a pr ospecting licence about
120km southeast of Port Hedland. It takes in a
highly mineralized region of the Pilbara with a
strong history of commercial tantalum produc-
tion and lithium bearing feldspar pegmatites.
The Lithex tenements are near Altura Mining’s
lithium resource which was updated recently to
13.29 million tonnes @ 1.21% lithium.
Lithex is continuing its exploration activities
at the Shaw River pr oject with a focus on
heavy rare earth elements. This pr oject is
about 50km southwest of Marble Bar and
has historically pr oduced tin and tantalum
concentrates from alluvial sources.
Managing director Rob Mandanici says the
company will target the hard rock sources of
these alluvial deposits as well as r emaining
previously identified un-mined deposits.
“There is significant potential for pegmatite
hosted heavy rare earth mineralization in the
Shaw River area. Australia’s first rare earth
mine was located on the pr oject which was
worked in 1913 and 1930 and yielded about
two tonnes of gadolinite. W e are currently
awaiting results from an airborne hyperspectral
survey across the Shaw River tenements
with the aim of identifying pegmatite r ocks
which are known to host heavy rare earth tin,
tantalum and lithium mineralization in the
area,” he said.
Lithex has applied for additional tenement
and exploration licences at its Arthur River project
which is 250km east of Carnarvon. This tenement
is also considered to be prospective
for tin, tantalum and other rare metals.
Australian Junior Explorers
The company has appointed a new full-time
exploration manager to oversee activities at
these projects. Brendan Borg has more than
15 years experience in exploration, envir onmental
and project development roles.
CARPENTARIA TO EMBARK ON BFS AT HAWSONS
A $25 MILLION payment to Carpentaria Exploration
from Bonython Metals Group (BMG)
is funding a bankable feasibility study (BFS) for
the largest magnetite pr oject in New South
Wales (NSW). BMG owns a 40% stake in the
1.4 billion tonne Hawsons Ir on Project and is
required to complete the BFS within two years.
A pre-feasibility study has already identified
the mine would initially start up as a 5 million
tonnes per annum operation, with scheduled
ramp up to 20 million tonnes. The starter pit
at Hawsons will have a mine life of 20 years
with the project having an overall mine life of
more than 50 years.
Carpentaria’s executive chairman Nick
Sheard says the company is entering a very
exciting time. “Our pre-feasibility study, audi-
ted in September last year, provided us with
the green light to progress the project to the
next stage, which is our bankable feasibility
study. We expect to commence the BFS in
the next couple of months and it should take
about two years to complete. Thereafter, we
are confident we will then be able to embark
on the next stages of the project.”
The Hawsons project is about 60km southwest
of Broken Hill in the far west of NSW
near the South Australian border and includes
an exploration target of up to 11 billion tonnes
which could contain up to 1.9 billion tonnes of
high grade magnetite concentrate. This gives
the mine a potentially longer life than the pr efeasibility
study’s allowance of 24 years.
The project’s close proximity to existing rail
The Pilgangoora project of Lithex
Resources with mineralization
indicated by yellow stars.
and port services and water, power and workforce
infrastructure bode well for its accelerated
development. It also boasts low cost
mining and processing costs because of a low
strip ratio, wide mining widths and soft ore.
Carpentaria will now work on obtaining regulatory
approvals, finalizing full access agreements,
securing a mining lease, defining the
project’s full transport options, continuing environmental
studies and r efining its mining
and processing options.
The company has already identified 13 million
tonnes of spare annual rail capacity from
Broken Hill and has signed a Memorandum
of Understanding with Flinders Port at Port
Pirie for annual availability of up to 30 million
tonnes of port capacity.
July/August 2011 | ASIA Miner | 49

Australian Junior Explorers
1.7 BILLION TONNE MAIDEN MINERAL SAND RESOURCE
METALLICA Minerals says its inferr ed maiden
mineral resource at the Glenaladale-Stockdale
deposit within the Gippsland zircon-rutile heavy
mineral sands (HMS) project has enhanced the
southeast Victorian region as an emerging mineral
sands province. Metallica completed a drill
program at the Glenaladale main section across
a 50sqkm area, after historical drilling indicated
it was the higher grade section of the resource.
The JORC-compliant r esource estimates
the deposit hosts 1.7 billion tonnes @ 2.2%
total heavy mineral (THM) containing 38 million
tonnes of heavy mineral (HM). Metallica
50 | ASIA Miner | July/August 2011
says an inferred HMS assemblage for the resource
estimate taking in a closer spaced drill
area has shown a significant zir con component
which is the most valuable of the HMS
assemblage. This inferred resource has been
measured at 360 million tonnes @ 2.7%
THM, containing 15% zircon, 4% rutile and
50% combined titanium minerals.
The Stockdale-Glenaladale deposit is 35km
west of the town of Bair nsdale with an estimated
500-800 million tonnes of mineralized
sand ranging in grade fr om 3-4% HMS, including
14-18% zircon, 5-7% rutile and 35-
55% titanium minerals. Its exploration licences
are held by Rio Tinto, however an agreement
was signed in August 2011 for Metallica
subsidiary Oresome to explore four of the licences
with the option to pur chase a 100%
interest in the future.
Metallica’s managing director Andrew Gillies
says the mineral resource is broadly in line
with the company’s previously stated exploration
target. “We are very encouraged by the
large sixe of the r esource, its grade and the
amount of zircon in the mineral assemblage.
These factors will assist greatly in driving attractive
project economics.
“The delineation of the mineral resource is a
major milestone in our due diligence work for
the potential acquisition of the pr oject from
Rio Tinto,” he says.
The company is now working to complete a
scoping study at the site in order to gain a better
understanding of the pr oject’s potential.
Metallica has commissioned HMS specialist
consulting group RJ Robbins to complete the
study, which will form an important part of the
company’s ongoing due diligence to potentially
acquire the project from Rio. Results of the
study are expected shortly.
“Gippsland is shaping up to be a medium
grade, large tonnage HMS r esource in a favourable
location and we look forward to the
project’s indicative economics from the scoping
study,” said Andrew Gillies.
JV TO EXPAND BROWNS RANGE HREE PROJECT
NORTHERN Minerals has formalized a joint
venture (JV) with Toro Energy to expand its
flagship Browns Range HREE project in Western
Australia after the completion of due diligence
by both parties. The JV allows for
Northern Minerals to ear n up to 80% of the
mineral rights in Toro’s Northern Territory tenements,
other than uranium. The agreement
also secures the tenements adjacent to the
Browns Range pr oject to consolidate the
company’s strong land position in what’s regarded
as a highly prospective region.
“We are very excited about the expansion
of our HREE footprint at Browns Range, and
working with Toro in the region,” says Northern’s
managing director George Bauk. “We
Drilling by Metallica Minerals at the
Glenaladale main section of the
Gippsland HMS project in Victoria.
have achieved further outstanding drilling results
from our Br owns Range pr oject and
some exciting regional results with new exploration
targets. This makes the JV with Toro
even more exciting and increases our scope
to build a significant HREE mineral inventory
in the Browns Range region.”
The JV expands the company’s landholding
on the Browns Range dome and will form
part of its broader HREE exploration and development
program for this year . It covers
seven tenements over 1403sqkm in Western
Australia near the Norther n Territory border,
about 150km southeast of the township of
Halls Creek in the Tanami desert.
Northern must spend $4 million on explo-
ration during the next thr ee years to ear n a
51% interest, with the option of incr easing it
to 70% by spending an additional $2 million
up to 2017. The company may also increase
its equity again to 80% by completing a bankable
or definitive feasibility study.
Northern will commence an exploration program
across the JV tenements as soon as possible
this year, starting with airbor ne surveys.
“Our aim is to test whether the geological setting
identified at our Browns Range HREE project
continues into the NT,” says George Bauk.
Browns Range hosts a number of prospects
with high value, HREE in xenotime mineralization
including high levels of dysprosium and yttrium
which are in short supply globally.

KAOLIN EXPLORATION TARGET SET AT POOCHERA
MINOTAUR Exploration has announced an
exploration target at its Poochera Kaolin Project
on the west coast of South Australia’ s
Eyre Peninsula, about 50km inland fr om the
town of Streaky Bay.
Five deposits have been
defined from 220 historical
and 224 r ecent drill
holes at the tenement, totalling
an estimated exploration
target of 570 to 810
million tonnes of white kaolinized
granite.
The company’s exploration
director Tony Belperio
says the kaolinized
granite has formed as a
simple, in-situ, weathered
mantle of varying thickness
over coarse-grained
granite and older metamorphic
rocks. He says
the variation in sour ce
rocks may contribute variations
in kaolin form and quality, which may
have positive implications for a range of potential
niche kaolin markets.
Product trials are about to begin on the kaolin
from one of the deposits known as Carey’s
Well, which hosts the world’ s purest
quality kaolin. Minotaur’s managing director
Andrew Woskett says a new calcining circuit
has been installed on the pilot plant at Str eaky
Bay and on which bulk sampling trials
have been conducted.
“The extra circuit will allow Minotaur to expand
the range of trials on various kaolin
based products in tandem with continuous improvement
in the deposit’s resources and chemistry.
Our test work has indicated the
potential for Carey’s Well to yield 8 million tonnes
of the purest quality kaolin available worldwide
and as we move thr ough assessment
and development phases and decisions, we
wish to optimize the range of products that this
Australian Junior Explorers
potential SA new mine can deliver.”
At an envisaged annual product output rate
of 100,000 tonnes, Andrew Woskett says the
current resource is suf ficient to support a
mine life of 75-80 years. The company is satisfied
that the r esource
base of 16.3 million ton-
nes of ‘bright white’ kaolinized
granite with low iron
and titanium content is
more than adequate to
take the pr oject through
feasibility. The 16.3 million
tonnes of ‘bright white’
kaolinized granite will yield
8 million tonnes of -45
micron kaolin.
More commonly known
as ‘china clay’, kaolin is a
naturally occurring industrial
mineral that is an essential
ingredient in
multiple and extremely diversified
applications including
as a filler, extender, raw material and
pigment in paper, paint, polymers, food, medicine
and ceramics. Minotaur believes Carey’s
Well can meet the r equirements of
specialist users at a time when the surging
Asian, Chinese and Indian economies ar e
putting unprecedented pressures on historic
sources of quality kaolin supply.
PROGRESS MADE ON DEFINITION OF ARTHURVILLE PROJECT
RAPID progress is being made on the definition
of Minotaur Exploration’s Arthurville base
metals project in central New South Wales. A
targeted airborne electro-magnetic survey
completed over a 77sqkm area of the site has
identified a large number of bedr ock targets
requiring follow-up investigation.
The exploration pr ogram at Arthurville,
about 50km southeast of the city of Dubbo,
is being funded through an exploration agreement
involving Minotaur, Mitsubishi Metals
and Mitsubishi Corporation.
The Arthurville tenement straddles the
northern extension of the Or dovician Molong
volcanic belt, which is considered to be
prospective for porphyry-r elated copper-
Minotaur Exploration’s Poochera
Kaolin Project is on South
Australia’s west coast.
gold mineralization and volcanic-hosted
massive sulphide base metal deposits.
Augur Resources’ Yeoval copper deposit is
5km to the south and Alkane Resour ces’
Toongi rare earth deposit is 6km to the west
of the Arthurville tenement.
Minotaur’s exploration director Tony Belperio
says data fr om the airbor ne survey
has confirmed more than 100 geophysical
anomalies at Arthurville require further evaluation.
“These ‘bedrock-sourced’ anomalies
are derived from systematic evaluation
of time-varying conductive response as they
can be largely masked by the r esponse of
conductive cover.
“Through integration with geology , ma-
gnetics and mineral occurrence data, these
anomalies are being reduced to those of
highest priority for further field evaluation
that will include soil geochemistry, rock chip
sampling, petrology and gr ound geophysics,”
he says.
The airborne survey was undertaken by
Geotech Airborne Geophysical Surveys
using their proprietary VTEM system over
two select areas corresponding to alteration
systems within the Molong volcanic belt and
adjacent to the Yeoval batholith.
Work is continuing on further defining
these and other base metal targets from the
airborne survey and their prioritization for
follow-up ground surveys.
July/August 2011 | ASIA Miner | 51

Australian Junior Explorers
CONSTRUCTION OF LUCKY BAY PORT UNDER WAY
CONSTRUCTION of IronClad Mining’s Lucky
Bay port facility is under way , after the company
received approval from the South Australian
government and finalized its detailed
design. The project is a unique concept aimed
at cutting road and rail transport distance from
mine to port by about 350km.
Significant works, including an 80 metr e
channel extension, loading dock, and acoustic
mounds and barriers, are required at the existing
harbour. Initially, IronClad will freight its iron
ore 156km by road to Lucky Bay then load it
onto barges to take to vessels anchored offshore
in the Spencer Gulf.
IronClad will develop its floating port 10km
offshore at Lucky Bay, to be serviced by two
company-owned self propelled barges. Construction
of the first of these barges in China is
40% complete and the 57 metre-long vessel is
expected to be finished by August. The port is
expected to take three years to complete but
will become a much closer alter native to the
current option of Port Adelaide which is almost
500km from the mine site. It’s expected the facility
will open up a new multi-user shipping
avenue for South Australian exporters.
A recent capital injection of $12.1 million from
the successful conversion of 16.2 million options
as well as a $13 million investment fr om
strategic share placements will be used to fund
the construction costs. Part of the placement
includes an offtake agreement with New Page
Investments, which secures up to 50% of the
iron ore produced from the Wilcherry Hill mine
52 | ASIA Miner | July/August 2011
for the first four years of production. New Page
must also pay Ir onClad 95% of the agr eed
value of the iron ore on each ship from the Luck
Bay port within 30 days of its departure.
Wilcherry Hill is 105km west of South Australia’s
steel industry capital of Whyalla, and
about 40km north of Kimba in the norther n
Eyre Peninsula. It covers four tenements over
an area of almost 1000sqkm. Access into the
project area is via the Eyre Highway to Kimba
and then graded service r oads and pastoral
station tracks. IronClad produced its first ship-
ment of iron ore from the Wilcherry Hill magnetite
project in February this year, with a target of
producing up to one million tonnes of premium
grade direct shipping ore by January 2013. It
also began construction of a dry magnetic separation
(DMS) plant.
Annual production is planned to ramp up rapidly
at the pr oject, to become a 12 million
tonne operation by 2015, when production will
be shifted to the company’s nearby Hercules
deposit which hosts a JORC inferred resource
of 198 million tonnes.
STROMBERG RARE EARTH RECOVERIES IMPROVE
TUC Resources has incr eased heavy rar e
earth element (HREE) recoveries by 10% at
its flagship Str omberg prospect within the
Daly project in the Northern Territory. Metallurgical
test work results have confirmed recoveries
of up to 85% from leach tests on the
HREE rich clays found at the deposit.
Two composite samples were tested and
the 85% recovery was achieved using leaching
by sulphuric acid after an initial caustic
wash using sodium hydroxide.
TUC’s managing director Ian Bamborough
says work indicates that r ecovery from
lower grade material is comparable to hig-
A schematic of the gravity separation circuit proposed by IronClad Mining.
her grade with a 0.2% to 0.4% total rar e
earth oxide (TREO) composite giving a 77%
recovery of total rare earth elements (TREE).
“It appears that the caustic wash improves
the amenability of the mineralized material
to the leach process.”
TUC says leaching of the HREE dir ectly
into solution can result in a more direct processing
route to an HREE intermediate/carbonate
material, which would allow the
company to generate mor e competitively
valued product, when compared to other
concentration methods.
The leach tests also extracted up to 93% of
uranium mineralization, possibly creating a secondary
revenue stream for the project, whilst
simultaneously serving to boost marketability
and exportability of any futur e HREE product.
The company says while these results are impressive,
test work is still at an early stage.
“To date 70% recovery of yttrium has been
achieved with a respectable acid consumption
of 371kg/tonne. Ef forts are now being
made to improve the efficiency of the process
including reducing reagent consumption by
testing variation in leach times, acid to mineralized
material mixes, and leach temperature,”
says Ian Bamborough.

Australian Junior Explorers
PRINCESS WILL ADD TO MULGA ROCKS URANIUM RESOURCES
ENERGY and Minerals Australia’s (EMA) newly
discovered Princess uranium deposit at the
Mulga Rock project in southern Western Australia
is expected to add significantly to the already
substantial resource. Highlights of a 260
hole drill program at Princess include significant
uranium intersections
with grades up to
5968ppm and continuous
mineralized intervals
to 8.22 metres
thick at less than 40
metres depth.
The deposit is a
single body about
1.4km-long and between
100 and 500
metres wide. The air
core drilling and
gamma logging pr ogram
covered a total of
17,788 metres at the
site, and was part of a
$1.21 million exploration
schedule for the
March 2012 quarter.
EMA says the new deposit confirms the
significant potential of its large landholding at
Mulga Rock. Chemical assay testing of air -
core cuttings from the drill holes is under way,
and the company says compilation of data to
be included in a JORC-compliant r esource
54 | ASIA Miner | July/August 2011
estimate has also commenced.
On site analysis of more than 6000 samples
have provided indications of the uranium grades
of the mineralization, which EMA believes
suggest potential for basement-hosted primary
mineralization including uranium, base
and precious metals. The company is working
to identify further drill targets at the site.
The Mulga Rock pr oject is about 240km
northeast of the r egional city of Kalgoorlie-
Boulder. EMA owns 915sqkm of land at the
site, which is proving promising for low-cost
uranium resources. The project consists of
four separate deposits - Ambassador , Emperor,
Shogun and Princess - making it one of
Australia’s largest undeveloped uranium r esources.
EMA says the deposits also contain nickel,
cobalt, rare earth elements,
yttrium, scandium,
vanadium, copper,
zinc and gold, with some
of these commodities to
be produced as a byproduct
from uranium
production.
Mulga Rock shar es
access infrastructure
with AngloGold Ashanti’s
Tropicana gold pr oject,
with the road construction
nearing completion.
EMA’s managing dir ector
Mike Fewster says
the company has the
right to use about
160km of the road as alternate
access to its
Mulga Rock project.
Meanwhile, base line studies are continuing
for the development of the Ambassador deposit,
with an environmental scoping study
being finalized as the basis for the envir onmental
assessment process.
THOMSON REVEALS COPPER-GOLD AT CUTTABURRA
FURTHER copper-gold mineralization has
been confirmed at Thomson Resources’ Cuttaburra
deposit in northwest New South
Wales. Assay results continue to highlight the
good exploration potential for significant Intrusive
Related Gold (IRG) deposits that Thomson
believes may be present in this region.
Selected intervals from a 480 metre wide alteration
system intersected in a r ecent drill
program have yielded significant gold and
copper results including 1.46 grams/tonne
gold, 0.1% copper and 10.9 grams/tonne silver
in 3.3 metres from 448.5 metres depth,
including 3.7 grams/tonne gold, 0.2% copper,
29 grams/tonne silver , 0.1% lead and
0.1% bismuth in 1 metre from 449.8 metres.
The Princess deposit is not far from EMA’s other uranium deposits at Mulga Rocks.
A reverse circulation drill program is being
designed to test the shallower parts of Cuttaburra,
with this method also allowing a better
estimate of gold content. The company’s
plans to move heavy drill equipment into the
area have been delayed by wet weather and
flooding, with the Thomson Fold Belt area receiving
its highest rainfall on record for the last
two years. Surface exploration did continue
at the company’s Byrock project, with several
ironstone gossans at the Kenilworth Station
prospect returning portable XRF results of up
to 57% iron with anomalous tungsten, lead
and zinc. Thomson will continue to work on
defining a possible drill target at this prospect.
The company has signed thr ee new joint
venture agreements which it says will pr ovide
access to new pr ospects at the Ghostrider
project 100km west of Cobar and the Achilles/Tooroonga
project 180km south of Cobar.
Within the Ghostrider pr oject area, the Bulla
Bulla anomaly is the most significant prospect.
Historic drilling defined a 4km-long anomaly
with maximum values of 1.15% lead, 0.22%
zinc, 0.12% copper and 25 ppm silver.
At the Achilles/Tooroonga joint ventures,
the stand out prospect is at Mt Boorithumble
which is 26km northwest on strike from
Comet Resources’ Browns Reef project. A
900 metre-long lead anomaly has been tested
by one diamond drill hole and two percussion
holes.

SUCCESS FOR NORTON IN PADDINGTON EXPLORATION
MID-TIER gold producer and takeover target
Norton Gold Fields has spent $3.7 million on
exploration and resource development at its
flagship Paddington tenements in W estern
Australia. China’s Zijin Mining Gr oup has
made a takeover bid for Norton, which the
company’s Board has recommended that its
shareholders accept. Norton has drilled 243
holes over 26,495 metr es since embarking
on a two year, $37 million accelerated pr ogram
in January aimed at converting 700,000
ounces in reserve to resource and identifying
300,000 ounces in new resources.
Norton’s managing dir ector Andre Labuschagne
says the tenements which take in
693sqkm of land near Kalgoorlie in one of the
world’s most highly endowed gold provinces
has an ore reserve of 16.1 million tonnes @
1.94 grams/tonne gold for one million ounces
of gold. “The resource development drilling
strategy will target timely development of projects
for the next five years. Gr eenfields exploration
targets will also be developed to
identify the next generation of deposits.”
Significant intersections at several of the tenements
during the latest drill phase include
1.3 metres @ 43.5 grams/tonne gold fr om
148.2 metres at the Homestead underground
prospect; 1 metre @ 35.7 grams/tonne gold
from 7 metres at the Enterprise prospect and
18 metres @ 2.73 grams/tonne gold from 47
metres at the Janet Ivy prospect.
The company’s key target ar eas for r esource
development have now been identified
and include undergr ound resource
evaluation at the Homestead and Black Flag
prospects. The delineation of oxide and deep
primary resource extensions will be investigated
at the Enterprise and Janet Ivy prospects,
while exploration teams will focus on the delineation
of small open cut mining projects at
Mount Pleasant including Rose W est-Violet,
Green Gum and Golden Flag.
Norton will focus its initial greenfields exploration
work on the Bor der-Gidji project area
Australian Junior Explorers
which overlies strike extensions of the highly
prospective Boulder-Lefroy mineralized structural
corridor. The company has also under -
taken exploration activities in r egional
programs taking in the Breakaway Dam prospect,
Lady Bountiful Extended pr oject and
Golden Eagle prospect, with 24 holes drilled
across these three areas.
TORO STARTS DRILLING AT THESEUS URANIUM PROSPECT
SOUTH-Australian based uranium company
Toro Energy has begun a drill pr ogram at its
Theseus prospect in Western Australia. The
company aims to convert a major portion of
the exploration target range (ETR) to an inferred
resource. Last year Toro established an
ETR of 20-40 million tonnes @ 400-500ppm
uranium for 10,000-20,000 tonnes of uranium.
The drill program is also following up on
existing identified mineralization from previous
drill programs outside of the ETR. A mud ro-
Norton Gold Fields’ Paddington project is in the prolific Kalgoorlie gold province.
tary rig has commenced the initial program of
about 20,000 metres at the project.
Toro’s managing director Greg Hall says,
“It is very good news for Toro to be able to
start this drilling program early in the season.
Toro believes ther e is an excellent
chance to convert the ETR estimate to an
inferred resource over the next few months.
We are looking forward to further positive
news from Theseus, especially after the highly
successful extraction tests impr ove the
probability of an ISR project.”
Theseus was discovered by Toro in 2009
during a grassroots regional aircore drill program.
Initial results highlighted the potential
for sandstone-hosted uranium mineralization
and further drilling in 2011 confirmed the presence
of significant uranium mineralization.
There have been 130 holes drilled at the project
with half of them r eporting a gamma,
assay or prompt fission neutron (PFN) greater
than 0.5 metres @ 100ppm uranium.
July/August 2011 | ASIA Miner | 55

Australian Junior Explorers
CORE EXPANDS DRILLING AT COPPER PROJECT
AFTER receiving encouraging initial assays,
Core Exploration has expanded the diamond
drilling program at its flagship Yorke Peninsula
copper project in South Australia. The ir on
oxide copper gold (IOCG) prospect is next to
Rex Minerals’ extensive copper deposit at the
Hillside project, northwest of Port Augusta.
Core Exploration’s managing director Stephen
Biggins says, “We already have multiple
intersections with significant copper
results to date and still have more assays expected
to be available in
mid-May from the r emaining
50% of holes drilled in
that opening program.
“These initial hits have already
encouraged our exploration
team to
recommence diamond drilling
with an expanded pr ogram,
including focus on
the main W auraltee prospect
where only 20% of the
1500 metre length of the
geophysical model has so
far been tested by drilling.”
Core Exploration says
there is growing interest in
56 | ASIA Miner | July/August 2011
the copper sulphides found with zones of
IOCG alteration on the Yorke Peninsula. The
company is also actively exploring its Fitton
copper-uranium prospect in norther n South
Australia as well as the Roxby Downs licence
area situated near BHP Billiton’s Olympic Dam
operation.
The Fitton prospect, 25km north of the Beverley
uranium mine, is in a pr oven worldclass
uranium mining district and Cor e has
recently identified very high levels of uranium
and copper in outcrop. A zone of shearing related
to mineralization has been mapped for
more than 2000 metr es at surface on the
newly named Scott Lee prospect.
A sample of chloritized schist within a
shear zone contained 2858ppm uranium
which is a four-fold increase in the previous
highest uranium value identified. In addition
a number of new samples contained highly
anomalous uranium above 100ppm for a
strike length of more than 800 metres.
The high levels of uranium
and copper in the new and
previous rock chip samples
correlate well with r esults
from previous soil surveys.
The company planned to
begin follow-up mapping,
sampling and detailed r ock
chip sampling of the entir e
length of the mineralized
shear zone during late June.
Drilling of priority targets defined
by these surveys is planned
for August/September.
Core is considering partnering
its Roxby South project to
fund drilling of IOCGU targets.
VENTNOR’S FOURTH DRILLING PHASE TO TEST AT DEPTH
BASE metals explorer Ventnor Resources has
commenced the fourth phase of drilling at its
Thaduna and Green Dragon copper project
in central Western Australia. The deep drilling
program is testing the pr ojected mineralization
at up to 320 metres below the surface.
The fourth phase at Thaduna aims to
achieve a complete resource drill out above
200 metres and to investigate the potential
for economic mineralization below 200 metres
along a strike length of 1000 metres.
The company has completed 145 r everse-circulation
drill holes over 18,700 metres
and 15 diamond drill holes over 1517
metres at Thaduna, while 89 reverse circulation
holes over 11,643 metres and 2 diamond
holes for 390 metr es have been
drilled at Green Dragon.
Assay results from the third drill phase have
been received, including significant intersections
such as 37 metr es @ 2.61% copper
An in situ sample from the shear zone at Core’s Scott Lee prospect.
from 111 metr es including 10 metr es @
7.53% copper from 134 metres and 19 metres
@ 1.85% copper from 246 metres including
6.57 metres @ 3.93% copper and 19.2
grams/tonne silver from 258 metres.
Mineralization including chalcopyrite and
bornite as semi-massive blebs and vein fill
has been observed in a variety of host rocks,
with the mineralization observed occurring irrespective
of the host rock. Ventnor says intersections
of br oad zones of primary
mineralization have been made at various positions
underneath the Thaduna pit.
Significant mineralization has also been encountered
at the Green Dragon prospect during
the thir d drilling phase. Assay r esults
include 10 metres @ 6.82% copper from 34
metres including 6 metres @ 10.96% copper
from 37 metres and 7 metres @ 4.43% copper
from 75 metr es including 5 metr es @
6.07% copper from 80 metres.The majority
of the Green Dragon mineralization is chalcocite,
which is hosted within a variety of stratigraphy
greywacke and siltstones.
The Thaduna and Green Dragon project is
170km north of Meekatharra and takes in
4216 hectares in the Doolgunna district,
where historic mine pr oduction took place.
Ventnor has two other projects nearby – the
Warrawanda and Nickel Hills nickel tenements
which cover 11,216 hectares. No exploration
activities have been undertaken at
these projects in the last quarter.
Meantime, the company has been awarded
funding by the Queensland gover nment to
progress its Georgina Hills pr oject 200km
southwest of Mt Isa. Ventnor says it will use
the $125,000 grant to drill a 1200 metre hole
to test and extensive, co-incident, magnetic
and gravity anomaly consistent with the possibility
of an IOCG deposit buried beneath the
sedimentary cover.

MINERALIZATION EXTENDED AT DEFLECTOR
GOLD-copper resources company Mutiny
Gold has discovered new high-grade intersections
which extend the defined mineralization
100 metres to the north of its current measured
and indicated resources at the Deflector gold
deposit in Western Australia. Shallow drilling
was carried out by the company to explore for
open pit resources in the project’s north.
The currently known Deflector deposit contains
mineral resources of 3.4 million tonnes
@ 4.9 grams/tonne gold, 5.7 grams/tonne silver
and 0.85% copper for 530,000 ounces of
gold, 620,000 ounces of silver and 29,000
tonnes of copper. Measured and indicated resources
total 2.1 million tonnes @ 5.2
grams/tonne gold, 7.3 grams/tonne silver
and 1.1% copper for 350,000 ounces of
gold, 490,000 ounces of silver and 22,000
tonnes of copper
Highlights of the drill results include 6 metres
@ 4.45 grams/tonne gold and 0.2% copper
from 40 metr es, 4 metr es @ 10.23
grams/tonne gold from 75 metres and 2 metres
@ 4.92 grams/tonne gold and 0.4% copper
from 92 metr es. Deeper diamond drill
holes were completed to extend the under -
ground resources to the south of the main
known area of mineralization, with highlights
including 2 metres @ 21.35 grams/tonne gold
and 1.06% copper from 193 metres and 2
metres @ 9.64 grams/ tonne gold and 1.1%
copper from 209 metres.
The encouraging results will be included in
the positive economics alr eady revealed in
the company’s definitive feasibility study (DFS)
for the West Australian project, within the Gullewa
tenements in the south Mur chison region.
The latest drill r esults have come from
the first seven holes of a RC drill pr ogram
which was designed to r evise the resource
estimation. More drill results still pending will
also be included in the update.
“The drill r esults continue to extend the
known length of mineralization of the central
lode and indicate the open pit mine life,” says
the company’s managing director John Gre-
NEW WADDIKEE DRILLING TO TARGET GRAPHITE
A DRILLING pr ogram targeting graphite is
being planned at Monax Mining’s Waddikee
manganese project in South Australia after
assay results from the Argent and Stanley
prospects confirmed the pr esence of graphite.
The r esults are from four samples
collected at the two sites to identify base metals
and silver within the project.
Coarse flake graphite of between 10.23%
and 16.04% carbon has been confirmed by
geochemical analysis. The company says the
combination of coarse flake graphite and high
carbon assay results make the Argent prospect
a high priority graphite target.
Monax has pr eviously outlined six target
areas based on surface sampling, historical
drilling and assessment of airborne electromagnetic
data. The company’s managing director
Gary Ferris says further field r econnaissance
will be conducted to determine access for drilling
and field check the six target areas.
The Waddikee project is about 20km west
of the township of Kimba in the central Eyr e
Peninsula. It has potential for manganese and
iron within the Proterozoic Hutchison Group
metasediments, with mor e than 80km of
strike length of the host sequence occurring
within the Waddikee tenement.
Initial rock chip sampling conducted in 2008
identified a number of iron and manganese pro-
Australian Junior Explorers
eve. “Overall project economics of Deflector
appear to be extending in line with robust forecasts
of the scoping study and Mutiny’s resource
expansion program. The mining team
is impressed with the grade and width of the
gold intercepts.”
Mutiny is awaiting more drill results from the
surface and down dip extensions of the more
copper-rich west lode. The company plans to
begin mine development in the second half of
2012 leading to an open pit mining operation
at Deflector, followed by underground mining
after two years.
Mutiny Gold’s processing facilities at Gullewa.
spects in the tenement. These samples r eturned
highly encouraging iron, manganese and
vanadium results of up to 60.1% ir on, 43.8%
manganese and 1.13% vanadium oxide.
Results at the most r ecently discovered
Hodgins mineralization zone in the project’s
northwest include 6 metres @ 20.9% manganese
and 10 metr es @ 29.2% manganese,
with one hole containing the highest
grade manganese at an overall 52 metres @
21.2% manganese. A drilling program at the
Polinga prospect at Waddikee has resulted
in high grade manganese of up to 29%
being intersected and has also pr oduced
further encouraging iron ore results.
July/August 2011 | ASIA Miner | 57

Prior to the early 1980s, if poor soil conditions
prevented a mining operation fr om safely accessing
a rich vein of or e, that company had
little recourse but to abandon the area in question
and lose the or e contained within. It was
generally accepted as a costly but unavoidable
facet of the business. Today, however, techniques
such as underhand cut-and-fill mining,
in which cemented mill tailings ar e used to
backfill the mined-out stope, allowing subsequent
stopes to be cut beneath pr eviously
mined areas, have established themselves as a
viable alternatives for working in such conditions.
While not as frequently relied upon—due
in large part to the added costs associated
with it—underhand cut-and-fill has pr oven to
be a valuable method and found its way into
mainstream mining practices. As a result, many
companies are pulling high-quality or e from
areas once viewed as unr eachable. One of
those, Montana’s Stillwater Mining Co., has
been successfully employing that approach for
more than a decade now and, with the help of
a KSP Series piston pump fr om Schwing
Bioset to deliver the paste for that process, has
literally “gone where no man has gone before.”
Big Sky Mining
Working a geological formation known as the
J-M Reef, Stillwater Mining extracts,
processes, smelts, refines and markets palladium
and platinum, as well as a limited
amount of copper, silver, rhodium and gold.
Located at the foothills of the Beartooth
Mountains in souther n Montana, the ar ea
represents the only known considerable
source of platinum group metals in the United
States, and is one of the most significant
sources outside Russia and South Africa.
According to Wayne Fallis, Stillwater’s stationary
equipment maintenance planner, the
ore is mined, crushed fine, and then run
through a flotation process. “At that point, it
is concentrated to about 30% to 35% metals
but there is still a good deal of dirt and
rock contained within,” he said. “So it is
sent to a refinery where it is run thr ough a
flash furnace to remove the base metals,
leaving a finished mineral product. The tail-
ings from that initial extraction process are
routed to the paste plant wher e, after processing,
they will eventually become the
mixture used in the backfilling process.”
To make that paste happen the mill tailings
are first mixed with a flocculent to settle out
the slimes. Excess water is extracted and the
residual material is pumped up and onto the
belt of a vacuum filter to a depth of about ¾ in.
(19 mm) where even more water is removed.
“The filter is critical in that it not only further
reduces water content, it also r emoves the
slimes that were not taken in suspension,”
said Fallis. “This is important because slimes
can have an adverse effect on the final product
by reducing the paste’s strength when the
cement is setting up; that simply can’t be allowed.
By the time material gets to the end
Paste Thickening
PUMP POWERS PASTE TO STILLWATER’S STOPES
Some of platinum producer Stillwater Mining’s more distant—and more difficult— stopes require expensive underhand cut-and-fill mining.
A sturdy piston pump has kept the paste flowing dependably to these sites for more than a decade.
By Larry Trojak
of the belt it is fairly dry. Water content is generally
only about 18% to 20%. We then send
it to a pug mill where the cement and any additives
are mixed. When it drops out the other
end it is finished product—paste ready to be
pumped to a waiting stope.”
Long Way to Go
Where that stope will be depends, of course,
on a host of factors. But it will generally be in
an area with poor soil conditions—ar eas
prone to rockbursts, for example. Stillwater’s
Mine Engineer, John Marjerison, said the decision
to go with underhand cut and fill starts
with the initial core sample.
“If we do the diamond drilling and geotech
assessment and the core shows the ground
to be very poor quality, we might decide that
Due to occasional poor ground conditions, PGM producer Stillwater Mining Co. finds it necessary to use underhand
cut-and-fill mining with paste backfill in about 10% of its stopes.
July/August 2012 | ASIA Miner | 59

Paste Thickening
we have to take our licks on the first cut and
really over-support that r ock. In some instances,
we might even be shotcreting on the
way in. Once we get that first cut done and
backfilled with paste, however , we know
what our back integrity is because we already
know what that paste strength is.”
At Stillwater, the distance to the stope
being backfilled can be mor e than 7,000 ft
(2.13 km). To move the paste that distance, in
1998 the company installed a KSP 80 pump
from Schwing Bioset (Somerset, W isconsin,
USA) powered by twin 150-hp (112-kW)
electric motors. Marjerison said that, despite
the relatively limited role underhand mining
plays in Stillwater’s everyday operation—it is
used for roughly 10% of the stope backfilling—the
pump is the ideal tool for the job.
“To move a material with a high solids content
that distance would be a challenge for
any piece of equipment,” he said. “Granted,
in many of the deeper stopes, the material
has gravity helping it out. However, that’s not
always the case; we’ve pumped some really
long distances without much of a vertical
drop at all. But the combination of the stoutness
of the pump and our efforts to produce
a nice consistent product out of the mixer has
really paid off. When needed, we’ve been
getting steady pour rates in the 90 ton-anhour
range and holding to that rate for sixhour,
12-hour, even 18-hour continuous
pours. We’ve been very pleased with that
level of performance.”
60 | ASIA Miner | July/August 2012
Stillwater’s paste plant operation is monitored at an
operator station, and pump operation can be supervised
from its own control panel.
Designed for Strength
The mix design at Stillwater to which Marjerison
refers, includes 10% to 12% cement
content and a Euco-Fill 31 water -reducing
and plasticizing admixture that develops 85
psi (586 kPa) of unconfined compr essive
strength (UCS) after seven days. Though
lower in strength than paste used at other
comparable mines also doing paste backfilling
(a result of the large amount of –44 mi-
Dewatered and treated mill tailings are processed in a pug mill and transferred through a hopper, visible in the
background of the photo, to the Schwing Bioset KSP 80 pump, driven by dual 150-hp motors.
cron [–325 mesh] particles in the mill tailings),
the company benefits by being able to r educe
velocity in the pipelines to about 2.1
ft/sec (0.64 m/sec), less than one-thir d that
of the other mines.
The mine’s pristine location also puts it literally
at the end of the power grid, making
outages a distinct possibility, particularly in
the harsh Montana winters. T o deal with a
service interruption to the Schwing Bioset
pump—which could be catastrophic if it occurs
in mid-pour—the company maintains a
diesel-powered oil field mud pump.
“That is our only backup for getting the
pipes cleared if we have an outage,” said Fallis.
“If the paste hardens in the pipe it is a real
nightmare. More importantly, however, if the
pour is interrupted for any length of time, because
of the risk of cold joints we can’t simply
resume pouring. W e’ve had instances
where that’s been the case and we’ve had to
drill and blast a partially filled stope to start
over. It’s not what we like to do.”
Prior to backfilling, Stillwater first lays down
a bed of anywher e from 1–1.5 ft (30.5–46
cm) of broken rock or prep muck on the floor
of the mined stope. Doing so not only of fers
something of a buffer from subsequent blasting
which will take place below the newlyfilled
stope, but also acts as a base in which
to drive DYWIDAG r einforcing bolts and
plates for added str ength. The addition of
wire mesh on the floor and construction of a
7-ft-high (2.1-m) wooden r etaining wall to
hold the paste in place, complete the preparation,
making the stope ready for backfilling.
“There’s no denying that ther e is a lot
more work and additional cost to doing underhand
mining,” said Fallis. “It might take
ten days or so just to get a stope ready for
the pour, then the paste has to cure for another
seven days after the pour itself. That’s
two-plus weeks of lost pr oduction on that
stope. However, we are now safely able to
get to ore that we couldn’t before—and the
key phrase there is ‘safely.’ Stillwater Mining
places a tr emendous amount of emphasis
on doing things the right way and
has an enviable safety record within the industry
to show for it. Underhand mining
might only be used 10% of the time her e,
but we’re happy to be able to make that
10% happen.”
LARRY TROJAK is president of Trojak
Communications, Ham Lake, Minnesota,
USA; Email: trojakcom@gmail.com.

A significant amount of the consulting work
performed by Metso’s Process Technology
and Innovation group involves Process Integration
and Optimization (PIO) studies, which
includes investigating the effects of drill and
blast design and implementation on downstream
processing. Critical to these studies
is the ability to track specific or e into and
through the plant.
To increase the accuracy of this ore tracking,
Metso Process Technology and Innovation
(PTI) developed a system to track or e
using RFID transponders called SmartT ag.
Since its commercialization in 2007 SmartTag
has been used in the majority of PTI’ s consulting
projects and several permanent systems
have been installed worldwide.
According to PTI, the benefits of using
SmartTag include: linking spatial mine data to
time-based processing data; increased confidence
in ore blending; proactive process
changes for known ore types; and accurate
measurement of r esidence times in stock
piles and bins.
Since 2007, there have been significant advancements
with RFID technology that have
allowed PTI to extend the r each of SmartTag
beyond secondary crushing to tertiary crushing
and even further downstr eam. This has
been achieved by drastically reducing the size
of the SmartTags from a diameter of 60 mm
to 20 mm. The new smaller RFID tags have
been successfully used in several studies.
The SmartTag System
A SmartTag RFID tag travels thr ough a mine
and mineral processing plant in a series of simple
steps. Initially, the tag and insertion location
is logged using a handheld computer or PDA,
then it is inserted into the ore (e.g., into a blasthole).
The tag travels with the ore through digging,
transport and pr ocessing before being
detected at specific locations on conveyor
belts, when the time and specific tag is
recorded. The RFID tag data is then loaded
into a database and analyzed as required.
To achieve this, the SmartTag system requires
five main components: The first is a
PDA, which allows the initial RFID tag insertion
process to become more efficient and
accurate. Each RFID tag is added to the
database using one of thr ee options—it is
associated with a GPS coor dinate; it is associated
with a predefined point (such as a
blasthole); or it is associated with a new
point, which can be accurately located later.
Grinding Mills
SmartTag
Looking at the Next Generation, and Beyond
Metso reports current developments and the future direction of its RFID-based ore tracking system
The SmartTag system utilizes radio frequency identification (RFID) tags and detectors to track ores as they flow from
the blast to the downstream processes and beyond. The insertion point of each SmartTag is registered using a PDA.
Currently, the system does not allow for
high-precision GPS but it can locate the
nearest point in a series of predefined points,
such as blastholes, and allow the user to associate
RFID tags with these points.
The next component in the system, the
antenna, is located at the conveyor belts.
The antenna both induces a charge on the
tag and also receives a transmitted signal
back from the tag. The design of the antenna
is decided by two parameters, which
are its size and its r obustness. The size of
the antenna dictates the size and the
July/August 2012 | ASIA Miner | 61

Grinding Mills
strength of the field it radiates. For this application
the area of field strong enough to
charge the tag should be as large as possible;
therefore, the antenna used for the
SmartTag system is the largest available for
this frequency of RFID system.
An RFID reader then decodes the signal from
the antenna and determines the ID of the RFID
tag passing the antenna. Later versions of the
readers also have auto-tuning capabilities
which ensure that the maximum possible read
distance is achieved at all times. In the Smart-
Tag system the reader then transmits the ID
using serial communications.
A data logging or buf fer stage improves
the reliability of the systems and also makes
movable systems possible. The data logger
receives data directly from the RFID reader,
stores the IDs with the time they wer e detected
and monitors vital system parameters,
such as the tuning state of the
antenna. The data logging stage also
makes SmartTag less reliant on communi-
cation links (such as wir eless) as the data
are stored at the detection point until a link
is established to the software applications.
The critical communications links, such as
the link between the antenna and the
reader, are all wired and reliable.
The core of the SmartTag software is an
SQL (Structured Query Language) database.
The database, located on a dedicated
server, stores all of the information about
the detection points, detected RFID tags
62 | ASIA Miner | July/August 2012
and original locations. Ther e are several
SmartTag software applications which either
input data into the database or use the data
to output information. These include the
SmartTagServer, which reads data from the
data loggers; the SmartTagPDA, which exchanges
data with the PDAs and translates
site blasthole layout diagrams; and the
SmartTagRes, which calculates the r esidence
time between two detection points.
Adding Mini Tags
To expand the applications of SmartT ag
through and beyond secondary crushing, a
mini RFID tag was required. To incorporate
the mini RFID tags into the SmartT ag system,
PTI faced two significant challenges;
first, the reduced read distance; and second,
making the mini tags robust.
By reducing the size of the RFID tag, the
size of the antenna in the tag is also reduced.
The size of the antenna in the tag is dir ectly
proportional to the amount of charge that is
Figure 1—Smaller SmartTag mini-tags, shown here in comparison with the original-size tags, can pass through
screening-media apertures down to 25-mm wide.
induced for a given field strength. Therefore,
the read range of a tag will be reduced as the
size of the tag is reduced.
Through investigation, the 20-mm tags
were found to have an insuf ficient read
range for the standar d SmartTag installation.
PTI trialed two methods for fixing this
issue; one method was to use two antennas
while another was to place the antenna
closer to the RFID tags.
Both systems wer e tested at an ir on ore
mine. Both appr oaches, dual antennas or
closer antenna distance, were found to have
similar detection capability. However, based
purely on the ease of installation, a single antenna
located under the belt was chosen as
the new standard installation method.
The second challenge faced when incorporating
the mini RFID tags into the Smart-
Tag system was how to pr otect them
sufficiently to survive a blast. A method previously
used by PTI to achieve this was to
encase the tags in a two-part epoxy . The
method works well for protecting the tags,
and although it is time-consuming and expensive
it is currently the preferred method
for protecting the tags. Different encasing
materials, such as reinforced nylon, are still
being investigated.
After encasing in epoxy , the mini-tags
have a diameter of 20 mm and ar e shown,
with a standard SmartTag as reference, in
Figure 1. The size of the mini RFID tags allows
them to pass easily thr ough screens
with apertures down to 25 mm.
Looking Ahead
Metso PTI has successfully incorporated a
smaller, or mini, RFID tag into their Smart-
Tag system. The changes to the system installation
are minor and incr ease the
reliability of the system as a whole. In several
examples the mini RFID tags have
proven to be, on average, more robust than
normal sized RFID tags.
The PTI team envisage that with the successful
incorporation of the mini RFID tags
into the SmartTag system it will allow applications
for the system to be expanded.
These new applications could include a wider
use in the iron ore industry where size is the
critical material quality. PTI is now working on
proving the reliability of the next size of RFID
tags—an even smaller micro RFID tag, which
can pass through a 10-mm mesh screen.
According to PTI, with the decreasing size
of RFID tags and the development of
SmartTag into a truly distributed system, it
can be extended past the mine to cover the
whole minerals supply chain. Detection
points can now be located in the plant, the
port and even at customer locations.
In Some Cases, Smaller is Better
The two case studies pr esented below
demonstrate applications where it was advantageous
to use the mini RFID tags rather
than the normal size RFID tags.

Secondary Crushing Circuit
As part of a wider PIO study a secondary
crushing circuit was surveyed while being
fed with a particular ore type. To determine
the origin of the or e at any particular time
and, most importantly, during the surveys,
SmartTag detection points were set up at
three locations around the circuit. The three
locations were primary crusher pr oduct,
secondary crusher feed and secondary
crusher product.
A total of 384 mini RFID tags were placed on
eight polygons (a polygon is defined as dif ferent
ore zones within the mine block model)
after the blast, the ROM pad and trucks as
they tipped ore into the primary crusher.
Of the 384 tags placed onto either the
muck pile or on the ROM pad, 45% wer e
detected. However, if this is compared with
the percentage of each polygon that had
been excavated by the end of the trial it is a
fair conclusion that many of the RFID tags
that weren’t detected were also not excavated
during the trial.
To determine the survival rate of the tags
during secondary crushing, the number of
tags detected before and after the secondary
crusher wer e compared. Of the 128
tags detected befor e the secondary
crusher, 97 were also detected after secondary
crushing.
However, as there were 52 tags that were
detected after the secondary crusher but
weren’t detected befor e the secondary
crusher, the real survival rate is dif ficult to
determine. By just comparing RFID tags detected
at both detection points, it can be
concluded that at least 76% of the mini tags
survived secondary crushing, although this
number is likely to be much higher.
The screen immediately following the secondary
crusher uses panels with 55-mm
apertures and, as expected, none of the
tags were recycled back through the secondary
crusher.
The primary application for SmartTag was
to determine the origin of the or e being
processed during the plant surveys. In this
application, where the plant feed included ore
from ROM mixing and stockpiles, SmartT ag
was essential for determining which materials
were processed in the plant at the time of
the surveys. Mini tags wer e required to enable
the ore source to be tracked all the way
through secondary crushing, and pr oved to
be robust enough to survive both blasting
and secondary crushing.
HPGR Circuit
PTI was contracted to assess
the performance of a
circuit at a mine in South
America. The SmartT ag
system was used in this
application to allow PTI
engineers to know exactly
when a surveyed blast
was being processed. For
this reason, detection
points were located on
conveyor belts carrying
the product of the primary
crusher, the output of the
stockpile and the HPGR
(High Pressure Grinding
Roll) feed.
As the blast was being
audited RFID tags wer e
deposited into 68 blastholes,
using an even split
of 34 normal tags and 34
mini tags. A further 50
tags were later added
into the trays of 25 trucks
at the primary crusher ,
using one of each of the
two different types of
tags in each truck.
A total of 68 tags wer e
identified at the primary
crusher product detection
point, 23 at the stockpile
output detection point and
41 at the HPGR feed detection point.
The blast occurred January 22 and the excavation
of the muck pile took place roughly
two months later between March 15–17. The
SmartTag system monitor ed the material
passing through the process over a period of
30 hours. During this period, a total of 67 different
tags were detected; 33 were of normal
size and 34 were mini tags.
For the stockpile and HPGR feed detection
points, the recovery was calculated with reference
to the 64 distinct RFID tags detected
at the primary crusher. Of the normal tags detected
at the primary crusher detection point,
42.4% were then detected at the HPGR feed
detection point; whereas for the mini tags
67.6% of tags detected at the primary
crusher were also detected at the HPGR
feed. This shows that the survival of the mini
tags in the circuit is higher than the normal
tags. In a hypothetical situation, wher e the
secondary screening mesh is smaller than 50
Grinding Mills
Eirich’s fine-grinding TowerMills have applications in a wide range of materials
that include copper, zinc and lead ores, iron ore, slags, and others.
x 50 mm, normal tags certainly would not
reach the HPGR.
The detection of tags at the primary crusher
was also af fected by the r emoval of the
SmartTag system before the entire blast was
processed for logistical reasons.
The tags were used to track the material during
an optimization campaign at the plant. During
the plant survey the material that fed the
plant originated from the central portion of the
blast. An unexpected result was that three of
the mini tags were twice detected at the HPGR
feed detection point. An explanation for this is
that they survived the HPGRs and r eturned
with the circulating ore (screened to +5 mm).
This article is based on a paper presented
at the 35th APCOM Symposium 2011 in
Wollongong, Australia. For additional infor -
mation, contact Michael Wortley, general
manager, PTI Products, Metso Process
Technology & Innovation, Michael.wortley@metso.com.
July/August 2012 | ASIA Miner | 63

Product News
Clean, safe and reliable fuel filling valve system
IN an industry that demands cleaner , safer
and more reliable fuel transfer technology,
mine dewatering specialist W eir Minerals
Multiflo (WMM) has achieved success by delivering
improved asset utilization, operator
safety and environmental outcomes for customers
with its Hydrau-Flo valve system.
Manufactured in Australia and in use since
1997, Hydrau-Flo fuel filling valves ar e used
globally by many of the biggest names in
construction and mining. The patented Hydrau-Flo
system is based on a sound mechanical
principle – spring-opposed hydraulic
pressure that delivers a clean, fast and safe
solution to organizations that transfer liquid
as part of their operation. WMM says Hydrau-
Flo valves achieve extr emely fast refuelling
times by delivering up to 1000 litr es per
minute into alloy, plastic or steel fuel tanks
and where the operation is alr eady utilizing
fast fill, the Hydrau-Flo system maintains tank
integrity by ensuring the tank is not pr essurized
during or following the refuelling process.
With Hydrau-Flo safety valves, the risk of
overfilling, spillage and diesel tank ruptur e
has become a thing of the past; so too the
risks associated with environmental hazards
and operator safety. All of these impr ove-
THE new Cat 777G Off-Highway Truck delivers
performance, production and fuel efficiency in
the 100-short-ton (91-tonne) size class. The
777 was first introduced by Caterpillar in 1977
and has proven to be a workhorse for mining
and large earthmoving customers. The 777G
replaces the 777F and Caterpillar says it delivers
greater levels of production and fuel efficiency
as well as enhanced safety , operator
comfort and service convenience.
The 777G achieves greater production with
7% more torque powering work and new
transmission controls that produce quick haul
cycles with automotive quality shifting. The
production increases are balanced with new
fuel saving strategies that include configurable
economy settings as well as an adaptive
economy mode that automatically
optimizes fuel consumption based on the
user’s production baseline. Fuel savings ar e
also realized through features such as auto
neutral idle and APECS transmission controls
64 | ASIA Miner | July/August 2012
ments have been achieved without the need
for electronics or complex arrangements
prone to blockage and failure. The Hydrau-
Flo valve system incorporates r obust fuel
filler safety and float control valves that provide
a r eliable, hydraulically-operated
arrangement that depends on fluid levels as
opposed to pressure. WMM says it is the
highly reliable and solid-state-design of the
Weir Minerals Multiflo’s Hydrau-Flo fuel filling valve
system delivers every day protection for fuel tanks.
Hydrau-Flo valves that allow customers to
be confident in fuel delivery and tank integrity,
with increased machine availability at
minimal economic or environmental cost.
It says a key benefit of Hydrau-Flo valves is
that operator safety is vastly impr oved due
New Cat 777G Off-Highway Truck delivers
where the truck becomes more fuel efficient
at idle in a forwar d gear and when climbing
grades. Customers can choose to engage
features like Engine Idle Shutdown and speed
limiting to further improve fuel savings.
In addition, the 777G is quieter and produces
fewer emissions. Caterpillar is intr oducing its
US EPA Tier 4 Final solution on the 777G two
years in advance of the ef fective date of the
regulation, which provides customers an opportunity
to advance sustainability goals. The
solution is simple and robust and includes engine
technology combined with diesel oxidation
catalysts. It requires the use of ultra-low
sulphur diesel fuel and low ash engine oil, but
requires no additional maintenance or opera -
tor input. For operations outside ar eas regulated
by the US EP A, the 777G r educes
emissions with Tier 2 or EU Stage II equivalent
technology and fuel efficiency.
Caterpillar has enhanced braking and
traction control for G Series. Hydraulic oil-
to traditional fuelling methods and associated
risks being eliminated. The use of
spring-opposed hydraulic pressure prevents
overfilling and removes the operator fr om
manually activating fuel shut-of f each and
every time the tank is filled. That means it
becomes impossible for employees to induce
a fuel spill by ‘topping of f the tank’.
This zero pressure, zero spill system for fast
filling provides organizations with industry
best practice for asset utilization, operator
safety and environmental outcomes.
The Hydrau-Flo valve system has been engineered
to work in conjunction with existing
fast fill machinery. It can be easily fitted to
new assets and existing assets r equiring a
better system for delivery of diesel fuel, and
can be used on any mobile or stationary
asset requiring delivery of coolant, diesel fuel
or water, where mechanical overfill protection
is required or fuel anti-surge or rollover
protection is needed.
With no sensitive electronics, WMM says
the Hydrau-Flo fuelling system boasts a low
number of moving parts and is one of the
simplest systems on the market today. It is a
highly configurable system that operates efficiently
in extreme cold (tested up to -65C).
immersed disc brakes are standard on all
four corners of the truck. The system design
increases slope holding capability and
provides fade resistant, responsive braking
performance. Design updates extend brake
component life by increasing the force used
to disengage the brakes. The optional Cat
engine brake can extend service brake life
and integrates with Automatic Retar der
Control, enabling fast downhill travel and reduced
cycle times.
The Cat 777G delivers greater levels of production
and fuel efficiency.

Supplier News
Aggreko powers up Martabe project
TEMPORARY power and temperature control
service provider Aggreko has commissioned
a turnkey rental power package to power the
construction and initial operations of G-Resources’
Martabe mine in Northern Sumatra.
The mine will eventually be power ed via the
local grid, however, for the initial start-up,
commissioning and early operations, a temporary
power facility will be r equired while
connection to the grid is established.
Aggreko has supplied a 24MW power package
to the Martabe site in two separate
stages. The first 8MW, for commissioning, was
delivered at the end of 2011. The r emaining
16MW was supplied at the beginning of May
2012 when the mine began operations. By
staggering the power supply , Aggreko ensured
that the critical power r equirements at
every stage could be satisfied within eight
weeks of the contract being signed.
The Martabe mine is the core mining asset
for G-Resources in South East Asia and will
ultimately employ about 2000 people. It is
forecast that once in full operation, it will produce
more than 250,000 ounces of gold and
between two and three million ounces of silver
annually. G-Resources’ general manager–
power Graeme Walsh says, “Aggreko worked
with us to pr ovide a power solution that
matched our r equirements exactly. The
THE Sangatta, Indonesia, branch of PT
Atlas Copco Fluidcon has received the national
Zero Accident A ward for working
1,245,975 hours, since January 1, 2002,
without a workplace accident.
The award was presented by the Republic
of Indonesia’s Minister of Manpower and
Transmigration, Muhaimin Iskandar , at a
ceremony held at Convention Hall, Smesco
Convention Centre, Jalan Gatot Subr oto,
Jakarta Selatan on April 25.
Atlas Copco Fluidcon was represented by
Sangatta branch manager Mouritz Havar d
Silalahi and safety coor dinator Eddy
Markus.
66 | ASIA Miner | July/August 2012
speed at which the pr oject has been rolled
out, the quality of the installation and the professionalism
of the Aggreko people has impressed
me greatly.”
Commenting on the project Aggreko Asia’s
managing director Debajit Das says, “The solution
we’ve delivered to Martabe highlights
once again Aggreko’s ability to rapidly deliver
customized, turnkey solutions to support our
customers’ activities, no matter where in the
world they operate.”
Aggreko employs more than 4500 people
operating from 165 locations. In 2011 the
company served customers in about 100
countries and had revenue of about US$2.2
billion. Aggreko plc is listed on the London
Stock Exchange, is a member of the FTSE
100 index and is headquartered in Scotland.
Aggreko is providing power to the Martabe mine project in Sumatra until connection to the local grid is established.
Atlas Copco Sangatta branch takes safety award
RIGHT: PT Atlas Copco Fluidcon’s Sangatta branch manager
Mouritz Havard Silalahi accepts the Zero Accident
Award from the Minister of Manpower and Transmigration
for the Republic of Indonesia, Muhaimin Iskandar.

LUBRICATION and condition monitoring specialist
Techenomics International is setting up
a new laboratory in Ulaanbaatar, Mongolia, to
cater for the country’s growing mining industry.
The laboratory will open initially with the
capability to do a full range of oil analysis
tests for engine oil, all other lubricated compartments
and hydraulic oil. It will be capable
of providing a few other services such as on
line vibration analysis for fixed plant and selected
specialty lubricants such as wire rope
lubes and drill pipe greases.
A team from Techenomics recently attended
the Future Mongolia exhibition to introduce the
service to Mongolian industry and the company’s
CEO Chris Adsett is delighted with the
response. “We were very pleased with the outcome
of the exhibition as we received well over
100 serious visitors out of which we believe
that many new opportunities will develop.”
Techenomics is an independent company
that provides oil analysis, fuel analysis, coolant
analysis, lubrication and filtration solution for
fixed and mobile plants as well as expert testing
of all petroleum fluids across Australia and
Asia. It has been distributing specialty lubricants
to the mining industry thr oughout Australia
and Indonesia for mor e than 20 years.
Today Techenomics focuses on its Total Fluid
Management Services (TFMS), operating three
ISO 9001 accredited laboratories and consulting
services. These laboratories are in Australia,
Indonesia and Thailand. They all conduct lubricant
analysis on used oils and gr eases, and
SGS Minerals Services was expected to
have an on-site laboratory established at the
Oyu Tolgoi mine site in the South Gobi region
of Mongolia by early June. At the end of 2011
SGS was awar ded the 3-year operational
contract for the on-site laboratory at the site.
The laboratory is scheduled to operate 24
hours a day, 7 days a week and its scope of
operations will include rapid grade contr ol,
process plant, final concentrate and environmental
determinations. SGS was pr eviously
running an on-site sample preparation laboratory
for the Oyu Tolgoi exploration team at
the Oyu Tolgoi site. Samples were prepared
at the exploration site and shipped to SGS’
analysis of wear debris.
Chris Adsett says, “Progress in getting established
in Ulaanbaatar is steady , although
slower than we would like. We are still awaiting
the completion of our business registration. We
have appointed Anuu (Bazar Mandy) as our
first Mongolian employee. She joined us on
May 28 and will assist with establishment of the
laboratory and customer relations.
Of the company’s display booth at Future
Mongolia Chris Adsett says, “I’m sure many
Supplier News
Techenomics to establish in Mongolia
Members of the Techenomics crew at the Future Mongolia exhibition in Ulaanbaatar, from left, Siti Munawarah,
Zhen Xu, Sreejith B, Eka Karmila, Chris Adsett and Andaru Gunawan.
commercial laboratory in Ulaanbaatar for all
required analyses.
SGS said the new on-site facility would employ
more than 50 staff and many were trained
at SGS’ local laboratory in Ulaanbaatar . The
Ulaanbaatar facility is a fully equipped commercial
facility with fire assay, ICP, XRF, fluorine,
chlorine, sulphur, carbon and classical
wet chemistry capability as well as a full scope
of testing for coal and conforms to the r equirements
of ISO/IEC 17025 for specific registered
tests. A metallurgical laboratory is also
being commissioned by SGS in Mongolia to
service the Oyu Tolgoi mine.
The Oyu Tolgoi on-site laboratory comple-
of those who visited the show will r emember
our beautiful female members of staf f
and in particular Tuul Tomorok and Tsatsa,
who toiled enthusiastically in providing visitors
with information on our services and in
particular oil analysis.
“We are pleased to say that you will be seeing
more of Tuul who has agreed to join us as
a brand ambassador. Tuul is a professional
Mongolian model who will commence a degree
in IT during the next semester,” he adds.
SGS awarded Oyu Tolgoi laboratory work
ments SGS Minerals Services’ existing facility
in Ulaanbaatar and further expands its
broad network of commercial labs around the
world. SGS offers a wide range of services to
the minerals sector including geochemical
analysis, resource calculation, mineralogy ,
metallurgy, advanced systems, water tr eatment,
energy and fertilizer minerals testing
and trade services. SGS is a leading inspection,
verification, testing and certification
company. SGS is r ecognized as the global
benchmark for quality and integrity . With
more than 70,000 employees, SGS operates
a network of more than 1350 offices and laboratories
around the world.
July/August 2012 | ASIA Miner | 67

Supplier News
Camp management company formed in Mongolia
NEW Age Mongolia LLC and Xillion LLC have
joined forces with international camp management
company ADEN Services. The three
companies have cr eated ADEN Services
Mongolia LLC, a joint ventur e registered in
Ulaanbaatar, and announced their ambition
to bring a new level of camp management
services to the booming Mongolian natural
resources industry.
The north Asian country’s vast deposits of
coal, copper and gold have sparked a boom
in mining investments, driving economic
growth to a r ecord 17.3% last year . The
country needs now to improve its level of professional
services to support development of
the natural resources sector.
Created in 2009 by a gr oup of local investors,
New Age Mongolia has established
itself as a pioneer and a leading service company
for local and international mining companies.
It offers a wide range of specialized
services from accounting, tax advisory ,
68 | ASIA Miner | July/August 2012
tourism, trading and more. Xillion was established
in 2008 as a consulting company providing
investment and investment
consultancy services in oil production.
After careful research New Age Mongolia and
Xillion have selected ADEN Services to add international
expertise to the companies, both in
camp management and pr ocurement. “The
association of New Age and Xillion’ s knowledge
of the local market, and ADEN Services
experience and expertise in remote site management,
will give us an edge in this fast growing
market,” says New Age Mongolia LLC
general director Amarbayasgalan Tamir.
ADEN Services, a Hong Kong-based international
facilities management company, is
one of the leading service companies in
China and a key global player in remote service
management. The company employs
13,000 people and has of fices throughout
China, Central Asia, Africa, the Middle East
and South East Asia. ADEN Services has de-
Joy ships 6000th continuous miner
JOY has shipped its 6000th JOY continuous
miner, with the model 12CM12 being delivered
to Patriot Coal Corporation in West Virginia
which currently operates more than 90
JOY continuous miners. The shipment of its
6000th unit marks another milestone in Joy’s
development of world-class continuous mining
machines for the global underground mining
industry. Joy produced its first continuous
miner unit in 1948 and since then has pioneered
many continuous miner innovations
that allow mining operations to increase productivity,
lower costs per ton and, most importantly,
improve operator safety with the
mission of achieving zero harm.
Joy’s ongoing commitment to impr oving
underground mine working conditions is illustrated
by its leadership in safety-focused
continuous miner design features. Early improvements
were marked by the transition
from on-board operation to operation via
radio remote control, reducing exposure to
dust, vibration, and an unsupported r oof.
Current innovations include improvements in
operator interface ergonomics.
Continued focus on operator-to-machine interaction
has also led to the r elease of prod-
ucts such as the JOY SMARTZONE Proximity
Detection System, JOY WETHEAD spray systems,
and the JOY SMARTConveyor. SMART-
ZONE Proximity Detection is an operator
awareness feature that teaches the operator to
control the continuous miner from safe working
zones. If an operator br eaches these zones,
certain machine functions are disabled until the
operator retreats into an acceptable zone.
JOY WETHEAD spray systems attack
dust generation at its source by integrating
sprays onto the cutting drum behind every
cutter bit. Independent studies show r educed
dust generation in excess of 30%.
JOY’s SMARTConveyor incorporates the
latest sound abatement technologies to re-
The JOY 12CM12 continuous miner improves safety, while
increasing productivity and lowering operating costs per ton.
veloped a new approach to remote site services
focusing on the quality of life for employees
and an innovative CSR policy.
The three partners have str ong expectations
for their Mongolian operations. They
have already started providing services for
their first project with the management of a
large coal mine camp, preceded by a significant
procurement contract, and they are well
developed in the pr ocess to sign several
other contracts. “We are very satisfied in the
partnership with New Age, we shar e common
values and both of us want to work hard
to bring professional services and a high level
of integrity to the market,” says ADEN Services
president and CEO Joachim Poylo.
The move demonstrates the strategic importance
of Mongolia to the ADEN Services
network, strengthening the ability to assist
clients in the country’s critical growth sectors
including energy & natural r esources
and infrastructure.
duce sound output while impr oving maintainability.
SMARTConveyor combines
multiple technologies such as JOY’ s
patented Dual Sprocket Conveyor Chain
and auto-tensioning features to improve
the operating environment.
Joy’s history extends back to 1919 when it
received the patent for the first mechanical
loader. Joy’s focus is grounded on current
and future commitments in pr oviding the
mining industry standar d for
safety, total pr oductivity
and reliability, and the
lowest operating
costs per ton.

How does Steinert service the mining industry in Asia?
Steinert Australia, and previously Steinert Sturton-Gill Magnetics, has
been servicing the region since 1969. We service Asia’s mining industry
by direct sales and through a network of authorized distributors
and approved resellers. We actively track and pursue greenfield
projects within South East Asia because the details of these oppor -
tunities are readily available by canvassing pr oject stakeholders,
through our network and the various media. Brownfield projects, and
repair and maintenance opportunities are identified and ferretted out
by representatives because they are closest to the market and ar e
actively engaged in proactive after-market strategies.
Is Asia an important market for Steinert?
Asia is a growing economy despite Europe’s problems. Demand for
commodities and raw materials may slow as demand for manufactured
goods out of the region slows as well but what we will see is a
requirement for more infrastructure through the industrialization and
urbanization strategies being implemented in the region. This extends
well beyond China with sharp increases in personal consumption from
the emerging middle class throughout Asia. We can see this in motor
vehicles as the car population has taken over from two-wheeled motorized
and non-motorized transport and the difference in the last 10
years has to be seen to be believed. The industry will develop and
tap into the local r esources to fulfil the commodity gaps. Steinert’ s
position is to assist these developments to process and extract these
minerals in the most effective and efficient way.
Are there plans to continue expanding in Asia?
Yes, Steinert’s expansion into Asia will be staged and carefully managed
as a hub and spoke with a strategic centr e as a focus. I pr esented
my plans to the board in Germany last month and they gave
me the go-ahead to roll out my plan as soon as possible. The Steinert
Group recognizes the importance of Asia and sees it as a fundamental
element in its growth strategies.
Is the company planning any new product releases in the remainder of 2012?
Since I joined Steinert back in mid-2007 I have seen no less than one
new product, or product line as in the case of NIR, released every year.
NIR means ‘near infrared’ and refers to a sensor-based sorting system
that allows us to utilize the wavelength of light emanating fr om the target
object to determine its worth to the operator. NIR came to Steinert
through the acquisition of R TT in Germany. Several derivatives of this
technology make up a suite of products we have at our disposal to actively
market into mining applications.Steinert has increased its range of
ore sorting capabilities by releasing the XRF unit, the 3D laser sorter (3Ds
can sort by shape and size) and the KSS, or combination sorter , to complement
the existing ISS (electro-magnetic induction sorter) and the sensor
sorter based on ‘dual energy’ X-ray transmission.
Steinert Australia is responsible for mining market pr oduct development
and has also released a new line of MagSeps for magnetite
beneficiation, covering cobbing, roughing and finishing duties, a brand
new heavy media recovery wet drum separator to halve the coal prep
operator’s magnetite losses - and an additional product which revolutionizes
magnetite iron ore dewatering.
Supplier News
Steinert services mining in Asia … and globally
What makes Steinert stand apart from competitors?
We see ourselves as providers of separation technology. Steinert does
not sell a piece of equipment without knowing, understanding and considering
the upstream and downstream effects of installing that component
within, at times, very complex flow sheets. This is why we ask
‘what is the problem?’ We rarely just sell equipment otherwise it, too,
becomes just a commodity. It’s about providing tangible options and
agreeing on the ultimate solution. We have increased staff numbers to
provide a more effective service.
July/August 2012 | ASIA Miner | 69

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July/August 2012 | ASIA Miner | 71

Exploration Spotlight
Survey identifies new Gunung Rosa targets
SIX new targets identified by a helicopter -
borne magnetic survey at Paramount Mining’s
flagship Gunung Rosa gold-silver-base
metal project are being prepared for detailed
exploration. The survey was flown at 50
metre line spacing about 50 metr es above
the West Java province project after magnetic
data released in April demonstrated a significant
intrusive complex containing several
potentially mineralized targets.
Paramount’s chairman Mo Munshi says,
“The demonstration of an intrusive complex
and alteration gives significant new scope for
delineation of additional resources of gold,
silver and base metal mineralization similar in
style to that which we have defined to date.
More importantly, it also demonstrates mineralized
porphyry stockwork potential. This
opens up a hitherto unr ecognized and importantly
unexplored range of targets in the
licence and the potential for significantly larger
intrusive porphyry-r elated resources
amenable to exploration and exploitation.
This adds considerably to the potential value
of the project.”
The company’s managing dir ector Terry
Holohan says the survey backs up r esults
from earlier drilling at the 2475 hectar e project.
“This survey further confirms our geologist’s
initial thoughts from the drill data that
the existing gold-silver-base metal mesothermal
vein system has developed within an in-
Lion One confirms further Tuvatu potential
LION One Metals continues to confirm further
resource potential and exploration upside at the
Tuvatu Gold Project near Nadi on the island of
Viti Levu in Fiji, while pr eparing for feasibility
work and potential decision for a fast track to
production. The company expected to complete
metallurgical testing by the end of June
with results expected during the current quarter.
Lion One has confirmed the continuity of
several of the principal gold bearing veins that
comprise part of the Tuvatu deposit. Mapping
along strike confirmed the Murau West 1 and
the Murau West 3 veins continue an additional
870 and 1300 metr es respectively from
the principal Tuvatu resource area.
These lode extensions branch out with
each intersecting the northeast trending 290
Vein, 750 metres apart, about 1km west of
72 | ASIA Miner | July/August 2012
A helicopter flies over the proposed plant site during a survey at Cap Palu on Paramount’s Gunung Rosa project in West Java.
trusive complex and might be associated
with a potentially much larger gold-copper
porphyry system. Our fieldwork has also
shown us that the vein system is far more extensive
than we initially thought.”
The six targets are characterized by strong
magnetic characters with silica-magnetite
and silica-pyrite-clay alteration. These features
will be subject to more detailed scrutiny
and shallow drilling to determine the character
of the geological envir onment occurring
the resource area. Both Murau Lodes ar e
characterized by multiple phases of quartz
and/or calcite veining that host gold and associated
sulphide mineralization.
The 290 Vein consists of auriferous quartz
and/or calcite veins with pyrite and other
minor sulphide mineralization that was emplaced
in a shear zone striking 210 degr ees
north and dipping 80 degr ees southeast.
With the recent surface exploration program
extending the strike length of the vein by 800
metres, the 290 Vein has now been delineated
over a total of 1420 metr es with widths
ranging from 0.15 to 0.55 metr es. The extensions
were discovered in outcrops and
drainages adjacent to the Tuvatu exploration
camp where they cut the Cor e Shed Fault.
The 290 Vein was labelled from a rock chip
as much of the area is blanketed by thick soil.
The increased confidence in the project has
prompted Paramount to secure a controlling
stake by paying US$2 million to PT Cikondang
Kancana Prima to increase its subsidiary
PT Paramindo’s stake to 51%.
Paramount’s next step at Gunung Rosa will
be to refurbish the old operating mine and
bring it into production as quickly as possible,
while focusing on further defining a diamond
drilling program.
sample that r eturned 293.5 grams/tonne
gold over 0.15 metres.
The company has also mapped continuous
extensions of the Upper Ridge Lodes 4, 5, 6, 7,
and 8 along strike lengths up to 800 metres to
the south-southwest. These lodes, all of which
have been drilled within the curr ent resource
area, remain open at depth and along strike.
‘Branching’ or fanning of the epithermal veins
along the caldera rim is consistent with the regional
geology of the Navilawa Caldera. Samples
from newly mapped structures have been
collected for laboratory analysis.
Lion One is pleased with results from the ongoing
surface exploration pr ogram as it demonstrates
that the high grade epithermal vein
system is significantly more extensive than that
incorporated in the current resource.