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Diggers & Dealers starts Monday 
If you would like to arrange one-on-one meetings with any of Read Corporate’s presenting clients, please contact info@readcorporate.com.au
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Read Corporate presenting clients
at Diggers & Dealers 2016:
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 Prospector's
Diary
By Tim Treadgold
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Gold stocks bounce back as Diggers beckons
S2, and its seriously interesting gold discovery near Norseman in WA’s Eastern Goldfields, was the lone star in a week on the Australian stock market best described as death by quarterly.
As a wall of emailed June quarter activity reports flooded investor inboxes, there was little time left for anyone to trade shares in a climate of information indigestion.
Most price moves, other than S2’s 33% rise to 55.5c, were modest, though the overall trend was pleasingly positive.
The all ordinaries index added 1%. The metals and minerals index, which is heavily influenced by BHP Billiton and Rio Tinto, put on 4.7%, while the gold index led the way with a rise of 5.2%, clawing back ground lost in the previous week. Read more |
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Northern Star to hit Diggers with its plans for more growth
 Profit was up, the dividend was up, cash was up and reserves and resources were up. In fact, the only things that went down were costs. If the market needed any more evidence that Northern Star Resources (ASX: NST) remains a growth stock despite its remarkable run of the past five years, it needs to look no further than this week’s run of outstanding results. A 65 per cent jump in net profit to a record $151.4 million saw Bill Beament’s behemoth end the financial year with $326 million in the kitty, up 83 per cent. While the growth cheered those of that persuasion, the yield-chasers also saw the benefits with the final dividend rising 33 per cent to 4c, taking the full year’s payout to 7c, fully-franked. Read more
Buy Vital Metals, says Breakaway, as it drills for high-grade gold in West Africa
 The recent decision by Vital Metals (ASX: VML) to ramp up its West African gold exploration activities is timely, says Sydney-based equities research outfit Breakaway Research, prompting a speculative buy recommendation for the $8 million junior. This week Vital kicked off a keenly anticipated 2000m RC drill program at its Kollo gold project in Burkina Faso, designed to in-fill and extend known high-grade mineralisation last drilled several years ago. “The gold sector has been reinvigorated in 2016 on the back of a surge in metal pricing – largely reflecting highly stimulatory global monetary policies and political instability,” says Breakaway in a new note. “In Australian Dollar terms, the gold price is now trading at near record levels, and gold’s recent appreciation is adding life to a junior resource sector that was resuscitated in 2015 following strong moves in lithium and graphite.” Read more
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- Headline inflation unexpectedly slowed to the weakest pace in 17 years, fuelling speculation the RBA will cut the official cash rate to 1.5% next week. The CPI rose 0.4 per cent in the June quarter from the previous three months, and 1% from the same period a year earlier.
- Oil prices dropped to a three-month low amid speculation that US fuel stockpiles increased, bolstering a glut in the world's biggest crude-consuming nation.
- BHP Billiton will record a provision of between $1.46b and $1.73b) for the Samarco dam disaster in Brazil, which killed 19 people when the tailings dam collapsed, in its full year financial results next month.
- Newcrest announced FY16 production of 2.34Moz, which was at the lower end of its guidance. Falling debt levels raised the prospect that it could resume dividend payments next month. The gold miner has not announced a dividend since February 2013.
- Independence Group raised up to $280m in a share placement at $3.75, with most of the proceeds to be used to fund the company's Nova nickel project in WA.
FMG forecast virtually no growth in iron ore exports this financial year but predicted that its costs of production would fall to between $US12 per tonne and $US13/t. If that is achieved, it may challenge Rio Tinto for the lowest unit costs in the sector.
- Goldman Sachs increased its short-term outlook for iron ore, saying iron ore will trade at $US50/t in three months and $US40 in six months. That's up from $US45 and $US35 previously.
- Anglo American's De Beers put its Snap Lake diamond mine in Canada up for sale after suspending operations at the unprofitable mine last December.
- Queensland mining executives are more worried about new laws from the Palaszczuk Labor government than global market conditions, according to a new survey.
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Ardiden (ASX: ADV) – New lithium exploration programs commence at Root Lake
Ardiden has commenced the next stage of exploration at its Root Lake Lithium Project in Ontario, Canada. The initial focus is to map and channel sample the Root Lake prospect. The geological team will conduct a survey of the current prospect to identify potential extensions of the known pegmatite structures, to delineate any additional pegmatite structures in the surrounding area, and also to define any further drill-ready targets ahead of the next phase of drilling. Further exploration is also planned at the Root Bay Lithium Projects and Manitouwadge Graphite Project. Read more
Bligh Resources (ASX: BGH) – Experienced mining executive Gino Vitale to join as MD
Bligh has appointed experienced gold industry executive Gino Vitale as non-executive Director and Managing Director and Chief Executive-elect. Mr Vitale’s brief is to expedite exploration opportunities near the Company’s Bundarra Gold Project in WA and to identify regional and complementary growth opportunities. The Company has appointed Somers & Partners to underwrite a $1.7M capital raising to fund its strategy and forthcoming obligations to the joint venture as it progresses toward development, and to provide a working capital. Read more
Breaker Resources (ASX: BRB) – High-grade drill results, new gold zones emerging
Phase 4 drilling at Breaker’s Lake Roe Gold Project, east of Kalgoorlie, has returned high-grade assay results. The aircore drilling encountered extensive gold anomalism in two main areas, designated the Bombora North and Crescent Prospect. The gold potential between the Bombora North and Crescent Prospects may also be significant based on anomalous pathfinder elements in end-of-hole multi-element samples. Breaker Executive Chairman Tom Sanders said: “The potential scale of the gold system is very exciting and new areas of mineralisation are emerging.” Read more
Capricorn Metals (ASX: CMM) – Identifies key exploration targets at Karlawinda
Capricorn has significantly upgraded the exploration potential of its Karlawinda Gold Project in WA, after identifying a series of major growth-opportunity exploration targets both in close proximity to the existing Bibra deposit. The Company will commence a major new program of in-fill and extensional drilling at the project, which will comprise up to 60,000m of RC and diamond drilling. Capricorn’s exploration strategy is to target a significant expansion of the current resource base, extend the potential mine life and target areas which are prospective for high-grade mineralisation. Read more
Carbine Resources (ASX: CRB) – On track to complete Mt Morgan Resource upgrade
Initial results from the Red Oxide Tailings Dump and final results from the Shepherd’s Gully Tailings dump at the Mount Morgan Gold-Copper Project in Queensland have been received. The results have confirmed the continuity and consistent high grade of the current Red Oxide Mineral Resources. Sampling of the overburden continues to highlight the potential for significant additional mineralisation in areas currently considered waste above the mineralised tailings. The results will be incorporated in an upgraded resource expected to be released in the coming weeks. Read more
Dacian Gold (ASX: DCN) – 176% increase in Measured & Indicated Resources at Westralia
Dacian reported a 176% increase in the Measured and Indicated Mineral Resource for its Westralia Deposit, part of its 100%-owned Mount Morgans Gold Project. The total Westralia Deposit Mineral Resource has now increased to 8.6Mt @ 5.8g/t gold for 1.6Moz. Executive Chairman Rohan Williams said the achievement of a 176% increase in Measured and Indicated Resources to over 900,000oz, coupled with a 15% increase in overall grade was an outstanding result, which sets the foundation for the Mount Morgans Feasibility Study later this year. Read more
Dacian Gold (ASX: DCN) – Strong new drilling results at Westralia
Exploration RC drilling along the Westralia BIF (banded iron formation) has intersected highly encouraging mineralisation away from the 1.5Moz Westralia Prospect Mineral Resource. Shallow reconnaissance drilling intersected mineralisation in the poorly tested Footwall unit along the Westralia trend, confirming the existence of mineralisation in areas previously assumed to be unmineralised. Executive Chairman Mr Rohan Williams said the new results were important because they established the presence of mineralisation outside of the known resources, once again demonstrating the scale and potential of the Westralia gold system. Read more
Goldphyre Resources (ASX: GPH) – To start key test-production bore tests at Lake Wells
A test production bore installation program is due to commence in early August 2016 at Goldphyre’s Lake Wells Potash Project in Western Australia. The tests will aim to confirm Lake Wells’ position as a leading WA potash project, building on its superior Resources and close proximity to existing infrastructure. These simple, low-cost bores will measure the rates at which the brine containing the potash can be produced from the aquifers. The results will underpin further economic assessments of the project. Read more
Kidman Resources (ASX: KDR) – Signs lithium processing MOU to accelerate Mt Holland
Kidman has signed an MOU with Poseidon Nickel (ASX: POS) allowing it to use Poseidon’s Lake Johnston concentrator to process lithium ore from the Mt Holland Project. The MOU provides for Kidman to explore opportunities to either toll treat Mt Holland lithium or for a conventional off take deal. The plant would also enable Kidman to upgrade lithium ore into marketable concentrate. A drill rig is currently mobilising to Mt Holland to drill Blue Vein gold deposit, and this rig will then be relocated to Earl Grey to test the lithium mineralisation once drilling approvals are received. Read more
Marindi Metals (ASX: MZN) – Thick zones of mineralisation at Newman Base Metal Project
Marindi has received all of the assay results from its recently completed RC and diamond drilling program at the Newman Base Metal Project in WA’s Pilbara region. The results are being reviewed in order to determine the next steps to progress this extensive and potentially valuable zone of mineralisation, including preliminary Concept Studies and establishment of an Exploration Target. Marindi is also reviewing options to advance the Prairie base metal deposit, in the light of the continued improvement in the zinc price. Read more
Millennium Minerals (ASX: MOY) – High-grade depth extensions confirmed at Nullagine
The first holes drilled during a deep drilling campaign at Millennium’s Nullagine Gold Project in WA have returned very high-grade results. The spectacular high-grade assay results were received from the first four holes drilled targeting depth extensions below the Barton’s deposit. A second fence of RC and diamond holes is now underway at Bartons, to be followed immediately by drill testing priority targets below the Shearers deposit. Results from the program will be used to support a Scoping Study on processing fresh ore types. Read more
Northern Star Resources (ASX: NST) – Outstanding year with 65% increase in net profit
Northern Star reported a 65% increase in unaudited net profit after tax to A$151.4M for the year to 30 June 2016. The strong profits reflect strong gold sales of 561,153oz at an all-in-sustaining cost of $A1,041/oz. In the light of its strong balance sheet, the Company has increased its final dividend by 33%, lifting the full-year payout from 5c to 7c. Northern Star finishes the year with cash and equivalent of A$326M, up from A$178M a year earlier, with no bank debt. Read more
Northern Star Resources (ASX: NST) – Reserves grow 33% to 2Moz at a cost of A$50/oz
Northern Star’s strategy to grow production to 700,000oz-a-year in 2018 is well on track with a 33% increase in Ore Reserves to 2Moz. The additional reserves have been delivered at a cost of just A$50/oz. These revised estimates also include just one of the five discoveries made by Northern Star over the past year. Further work is now underway with the goal bringing the other four discoveries into the JORC estimate. The substantial growth reflects the significant success of Northern Star’s exploration strategy, showing it is meeting its goal of increasing its mine lives. Read more
Orion Gold (ASX: ORN) – Outstanding high-grade zinc-copper hits in SA
Orion has made a strong start to its maiden drilling program at the Prieska Copper Mine Zinc-Copper Project in South Africa, with initial assays including some outstanding zinc and copper grades. The Prieska Copper Mine is recorded as one of the world’s 30 largest Volcanogenic Massive Sulphide (VMS) base metal deposits. The current drilling program is designed to confirm, in-fill and extend historical drilling at the +105 Exploration Target. Results from the drilling so far have confirmed and enhanced historical drilling results with further assay results awaited. Read more
Pilbara Minerals (ASX: PLS) – Update on product off-take
Representatives of Pilbara Minerals, General Lithium and their engineers have visited Malaysia to evaluate potential plant sites for the proposed Lithium Chemical Plant. The visit also included high-level meetings with Malaysian Government officials to evaluate the best plant location and integration with existing chemical precincts. A Chemical Plant Scoping Study is now underway and due for completion prior to the end of August, 2016. Following the successful completion of the Study, a full Feasibility Study is planned using General Lithium’s existing technology and designs. Read more
Saracen Mineral Holdings (ASX: SAR) – Triples FY17 exploration budget
The fast-growing Australian mid-tier gold producer has tripled its exploration budget to $42M for this financial year as part of its growth strategy to grow the inventory and production at its existing WA gold mines. The strategy is targeting additional inventory at Zone A underground, King of the Hill at Thunderbox and the Karari, Deep South and Red October deposits at Carosue Dam. The increased exploration budget will be funded solely from internally generated cash flow, ensuring Saracen remains debt-free. Read more
Sipa Resources (ASX: SRI) – Completes placement with SPP to follow
Sipa has settled the private placement of 14,200,000 fully paid ordinary shares at an issue price of 2c per share, raising $284,000 which is $20,000 more than announced on 20 July 2016. Proceeds from the Placement and SPP, combined with Sipa’s cash reserves of $1.6M, will ensure that the Company is in a strong position to progress exploration programs. Funds will be used to underpin the maiden aircore drill program at the recently acquired Paterson North Project in WA, and also undertake the next phase of exploration at the Akelikongo nickel discovery in Uganda. Read more
Syndicated Metals (ASX: SMD) – Syndicated acquires highly prospective gold project
Syndicated has reached agreement to acquire the highly prospective Monument Gold Project in WA’s Laverton gold province through the purchase of the unlisted company Monument Exploration Pty Ltd. The project comprises a 210km2 tenement portfolio adjacent to Dacian Gold’s 3Moz Mount Morgan’s Gold Project. The newly acquired project represents an attractive exploration and growth opportunity for the Company, following an extensive search for suitable new project opportunities outside of its Queensland copper-gold assets. Read more
TNG (ASX: TNG) – Demerger and IPO Proposal for non-core assets
TNG announced that it will shortly convene a shareholder meeting to re-approve the demerger of its non-core portfolio zinc, copper and base metal assets in the NT. TNG originally received approval for the spin-off at a general meeting of shareholders held on 20 May 2015, however was deferred due to prevailing market conditions. In the light of the improvement in market conditions for the junior resource and exploration sector has seen this year, TNG will seek re-approval for the spin-off via its subsidiary, Todd River Resources, at a general meeting of shareholders. Read more
Vital Metals (ASX: VML) – Commences West African gold drilling campaign
Drilling has commenced at Vital’s Kollo Gold Project in Burkina Faso in West Africa to in-fill and extend known high-grade gold mineralisation. The Kollo Gold Project is located in the heart of one West Africa’s prolific gold districts. A diamond drill rig is currently on site and commenced drilling on the weekend. The Reverse Circulation rig has received all of the import permits and is expected to be mobilised pending a final physical inspection. Previous RC drilling at Kollo has intersected significant gold mineralisation at Kollo. Read more
Venturex Resources (ASX: VXR) – $5M funding package to advance copper-zinc projects
Venturex has executed a mandate with Euroz Securities to undertake and manage a $5M funding package to accelerate the evaluation and potential development of its copper-zinc assets in WA’s Pilbara region. The funding package comprises an already committed $1M share placement to cornerstone investors and a 2-for-5 entitlements issue to raise $4M. Directors John Nitschke and Tony Kiernan intend to take up all of their respective entitlements and in addition will be underwriting to a total of $150,000 of any shortfall. Read more
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Quarterly Reports released this week:
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