Australia

Bellevue Gold Ltd (ASX:BGL) has lifted total gold resources at its high-grade Bellevue Project in Western Australia by 23% to 6.1 million tonnes at 11.3 g/t for 2.2 million contained ounces.

The increase stems from the declaration of the maiden resource of 1 million tonnes at 12.3 g/t for 400,000 ounces at the Deacon Lode.

Shares have increased by 11% to an intra-day high of 65.5 cents, up from 45.5 cents on February 5, before closing at 64 cents.

Bellevue managing director Steve Parsons said the increased resource demonstrated the huge potential unfolding at the project.

“The increased resource further strengthens the outlook for our maiden indicated resource, which is set for release in the coming quarter.

“It also highlights the immense scope for ongoing growth in the inventory at Bellevue, as shown by the numerous high-grade intersections which remain outside the resource at Deacon.”

Results outside current resource

Drilling to date has returned results from several drill holes to the north that sit outside of the current resource area, including:

  • 3 metres at 12.0 g/t gold from 571 metres
  • 4.5 metres at 6.6 g/t from 635.6 metres
  • 1-metre at 23.8 g/t from 599.8 metres

A recent scout 200 metre step-out to the north extended the known strike of the mineralisation to 2 kilometres with results including 0.4 metres at 25.5 g/t from 517 metres and 0.8 metres at 8.8 g/t from 642 metres – the reported resource only covers 900 metres of the known strike.

Further drilling is being conducted in these areas to bring it into resource category in the near term.

“Becoming a substantial gold producer”

Parsons said: “Bellevue now has genuine scale.

“It is in the backyardRead More – Source

Australia

Bellevue Gold Ltd (ASX:BGL) recently lifted the total gold resources at its high-grade Bellevue Project in Western Australia by 23% to 6.1 million tonnes at 11.3 g/t for 2.2 million contained ounces.

The increase stems from the declaration of the maiden resource of 1 million tonnes at 12.3 g/t for 400,000 ounces at the Deacon Lode.

Canaccord Genuity has reiterated its speculative buy rating for Bellevue with a price target of $1.10.

Following is an extract from Canaccords research update:

Catalyst rich 2020 awaits…

We highlighted BGL in our recent Top Stock Picks note (here) as the most exciting exploration/development story in the Australian gold space, a view we continue to hold. BGL has been a relative under-performer against the sector over the past 12 months (A$ gold +25%, XGD +20%, BGL -8%), and while infill drilling can be loveless from a market perspective, the expected near-term Resource upgrades, and implications for the scale and validity of the project are being underappreciated, in our view.

What's in store for 2020. In deriving our base case valuation on BGL +12 months ago, we made a number of assumptions that, in our view, remain on track to be validated or exceeded during 2020.

  • Maiden Inferred Resource for Deacon/Mavis expected in the MarQ'20. Deacon/Mavis was discovered in 2H 2019, and with mineralisation defined over +1.5km strike length, the orebody is emerging as a meaningful potential addition to the Resource base. Drilling has primarily focused on a ~500m panel within the mineralised corridor, which in our view should see a maiden Inferred Resource of 250-350koz at 8-10g/t released shortly, taking the total Inferred Resource to +2Moz. As drilling continues, we see good scope for Deacon/Mavis to support 500koz-1Moz within 12 months.
  • Maiden Indicated Resource for Tribune, Viago and Bellevue expected in the JunQ'20. Infill has been the focus for essentially six of the eight diamond rigs on site, targeting the shallower parts of the current 1.8Moz at 11g/t Resource. We see good scope for a maiden Indicated Resource of 350-500koz at 8-11g/t, with grade likely to depend on the ratio of Tribune (8g/t, shallower) and Viago (16g/t, deeper) included in the update. Infill results released today continue to strongly support BGLs geological model, which predicts gently plunging, high-grade shoots within the mineralised envelops, an interpretation consistent with shoots that were mined at the Bellevue underground mine. Importantly, the results from all the Resource domains currently targeted with infill drilling confirm robust underground mineable widths and grades of the lodes and excellent continuity to the plunging ore shoots. Highlights from the latest infill drilling include: 1) Viago – 4.7m at 33g/t, 3.2m at 21g/t, 4.6m at 10g/t; 2) Tribune – 5.7m at 17g/t, 8.2m at 8g/t, 3m at 36g/t; and 3) Bellevue Lode – 4.3m at 28g/t, 2.5m at 22g/t, 2.4m at 23g/t. With an aggressive infill drilling program ongoing and potential access to underground the 2H 2020Read More – Source
Australia

Peel Mining Ltd (ASX:PEX) completed a program of about 11,000 metres of drilling from August through to December 2019 primarily designed to develop a higher confidence resource at the Wagga Tank-Southern Nights Project in NSW.

A new high-grade zone at the southern end of the Southern Nights deposit returned further strong assay results including some of the highest-grade gold mineralisation intersected at Southern Nights to date.

Given the dearth of quality base metal development stories in Australia, Hartleys is excited by the potential offerings PEX brings to market.

Hartleys has maintained its speculative buy recommendation for Peel with a 12-month price target of 38 cents per share.

Following is an extract from Hartleys research report:

Transitioning from Explorer to Developer

We recently visited Peel Mining Limiteds (PEX) projects within the southern Cobar Basin in NSW. The Company has been actively exploring in the region since 2010 and has a large ground holding covering over 5,000km2 . Having uncovered 3 deposits in 7 years; the 100%-owned Wagga Tank-Southern Nights Zn-Pb-Ag deposit (WT-SN), the Mallee Bull Cu deposit (JV with CBH Resources); and the Wirlong Cu prospect (JV with JOGMEC), PEX is building critical mass to develop the regions next polymetallic operation(s).

Site Visit – numerous quality targets and development options

We visited WT-SN, Mallee Bull and the Wirlong Cu Project where diamond drilling is currently underway. There are also numerous compelling exploration and brownfield targets that the Company intends to drill test; namely the Double Peak target, which is a Tenant Creek style Bi anomaly. We also visited the historic Mt Allen adit where gold mining was undertaken in the early 1900s and the May Day open pit which was mined for gold in the 1990s. Additional gold credits would enhance PEXs appeal in our view.

How best to deploy capital? Decision Time…

While PEX has a number of highly prospective exploration targets as well as extensional opportunities at its existing deposits, a decision must be made as to where best deploy its limited capital; further exploration or development? Although the current resources may not be at a sufficient size to justify standalone operations in our view, the Company recently reported that internal scoping/option studies highlighted the potential for a combined WTSN and Mallee Bull project to offer a critical mass of mining inventory to support a new processing hub in the Southern Cobar Basin. We see this as a positive development and await further information from PEX. With drilling underway at Wirlong, the Company may gain sufficient data to undertake a maiden resource for this copper prospect later this year, thus adding further mass to its growing inventory. With CBHs (Toho) diminishing presence and potential exist from the region, PEX may be able to acquire the other 50% of Mallee Bull. Given CBH has invested ~A$13M in the project to date, one could expect the JapaRead More – Source

Australia

Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (FRA:W1D) (OTCMKTS:WHELF) has completed the second stage of on-lake construction at its sulphate of potash (SOP) from its Lake Way Project in Western Australia.

Stage 2 includes 275 hectares of brine evaporation ponds which will provide feed salts to the process plant in 2021.

In total, Salt Lake has now completed construction of 400 hectares of evaporation ponds and 35 kilometres of brine abstraction trenches.

Focus now on building processing plant

The focus has now shifted to the construction of the processing plant as well as other non-process infrastructure.

Ground clearing and early-stage civil activity has commenced.

Salt Lakes CEO Tony Swiericzuk said: “The rapid delivery of the Lake Way SOP Project continues.

“Completion of the Stage 2 ponds, ahead of schedule and on budget, means the company now has the infrastructure in place to supply harvest salts to the process plant in 2021.

“As these key milestones are completed the project continues to be significantly de-risked with expected first SOP production now just 10 months away.”

Read More – Source

Australia

The Flowr Corporation (CVE:FLWR) (OCTMKTS:FLWPF) revealed Monday that it has received approval from Health Canada to open 10 additional grow rooms at its flagship Kelowna 1 cultivation facility in the fertile Okanagan Valley of British Columbia, which is now fully operational.

In a statement, the Toronto-headquartered cannabis firm said this brings the total to 20, doubling the companys capacity to grow premium, indoor flower at the facility. The newly licensed area also includes automated packaging equipment to reduce labor costs and the cost of goods sold, noted the company.

This is the final approval required for full operation of the facility.

READ: The Flowr Corporation is tapping into a global cannabis market with a unique strategy

With the green light from Health Canada, the company plans to immediately begin phasing in the propagation of the additional grow rooms.

The Kelowna facility is more than just an indoor cultivation centre. Its current operation stands at 32,000 square feet with a 17,000 square foot canopy. When fully operational, the anticipated 85,000 square feet facility is expected to produce around 10,200 kilograms of bud.

“The full licensing of Kelowna 1 is a major milestone for Flowr. For the first time since we broke ground on the facility, we wont be operating out of a construction site,” said Flowr CEO Vinay Tolia in a statement.

“We continue to see growing demand for our premium cannabis products led by our flagship strain, Pink Kush. Furthermore, we expect to see an improvement in operating efficiency as we reach scale coupled with the commissioning of our automated packaging line,” he added.

The company said it employs proprietary systems to create “a highly controlled growing environment” that will enable it to produce a large portion of premiumRead More – Source

Australia

88 Energy Ltd (LON:88E) has shared a number of key facts with investors ahead of the hotly anticipated Charlie-1 well in Alaska.

The company, in a statement, said it had updated its investor presentation to include details about the pending drill programme.

Rig and well teams mobilised earlier this month. Drilling is expected to start in “late February”. The well will be drilled down to a depth of 11,400 feet.

READ: 88 Energy starts countdown to Charlie well programme

Drilling, logging while drilling, and wireline logging operations are expected to take a total of 30 days to complete. Subsequently, subject to initial results, the well will undergo flow testing with up to two production tests slated. Each test is expected to take 14 days.

Altogether, 88 Energy expects that the whole well programme will take around 60 days to deliver. It added that the reporting of results will be “determined by materiality and continuous disclosure obligations.”

Earlier this month, 88 Energy raised A$5mln of new capital with the funding expected to cover any potential costs above those carried by Premier Oil PLC (LON:PMO) – which in 2019 agreed a farm-in deal to participate in the project.

Premier is paying up a total of US$23mln to drill Charlie which is designed to be an appraisal of the Malguk-1 discovery made by BP in 1991.

Malguk-1 discovered 251 feet ofRead More – Source

Australia

Calima Energy Ltd (ASX:CE1) recently acquired the Tommy Lakes facility, including associated pipelines and infrastructure, from Enerplus Corp (TSE:ERF).

Tommy Lakes lies immediately to the north of the Calima lands in British Columbia and saves the company (and any future partner) an $85 million investment in infrastructure.

Calima managing director Alan Stein said: “This is a significant strategic acquisition that gives the company access to markets in a very cost-efficient manner.

“With a replacement value of $85 million, the re-use of Tommy Lakes significantly reduces capital cost however, just as importantly, avoids the time involved in permitting and constructing new facilities.

“The Calima Lands are now ready for development once a funding partner is secured.”

The infrastructure acquired includes gathering pipelines, compression facilities and associated facilities capable of transporting up to 50 million cubic feet/day of gas and 1,500-2,000 barrels per day of well-head condensate

Production start-up from existing wells could commence the first quarter 2021 subject to third party funding.

Strategic acquisition

The principal consideration for the acquisition is around $825,000 which will include the cost of shutting down the facilities and the payment of a refundable performance bond to the Oil & Gas Commission of British Columbia (OGC).

Calima has also entered into an option agreement to acquire 11 gas production wells on or before April 1, 2022 in the Tommy Lakes field.

The wells would provide the company with the option to use gas as fuel as part of the start-up sequence for the facilities, if required.

As it stands, the strategic acquisition means Calima avoids regulatory work that could otherwise take years to approve and can leave the existing facility on suspension until its ready to start production.

Pipeline and processing access

The acquisition also provides Calima cost-efficient access to the North River Midstream pipeline and Jedney processing facility.

The processing plant in turn provides immediate access to major export routes including TC Pipelines LPs (TSE:TRP) Nova gas transmission pipeline and the Alliance pipeline.

Importantly, new pipeline investment and capacity growth will allow for gas to be directed towards the Shell/Petronas LNG Canada Facility via the Canada Coastal Link pipeline and the proposed Woodside/Chevron LNG Facility at Kitimat.

Major pipelines and export routes in Canada

Condensate, gas and project economics

The company estimates around 77% of production in terms of barrels of oil equivalent (boe) from the Calima lands would be gas, and condensate would be expected to account for around 50% of production revenue from the Calima Lands.

While Calimas project economics are underpinned by condensate, the gas price offers leverage.

Canadian producers have been under pressure from low gas prices for several years, but now Western Canadian gas prices are improving as more pipeline capacity is made available.

Stein said: “With gas prices showing consistent increases over the last 6 months, development economics are showing steady improvement.”

Calima regards $2 per gigajoule as an inflection point in delivering acceptable project econRead More – Source

Australia

Kingston Resources Ltd (ASX:KSN) has strengthened its executive team by making senior appointments to help lead ongoing exploration and project development programs at Misima Gold Project in Papua New Guinea and Livingstone Gold Project in Western Australia.

Stuart Hayward has been promoted to chief geologist to manage the increased scope of technical programs across the projects, oversee mineral resource estimates for both and manage the delivery of technical inputs to underpin the completion of Misima mining studies.

Andrew Harwood will replace Stuart Hayward in the role of Misima exploration manager and will work alongside project manager Charles Yobone and the geology team to advance the 2020 drilling program ahead of a mineral resource estimate in Q2 2020.

“Invaluable addition to on-ground team”

Managing director Andrew Corbett said: “With our ongoing exploration program continuing to enhance the prospectivity of both our Misima and Livingstone gold projects, I am absolutely delighted that Stuart Hayward has accepted the position of chief geologist and that Andrew Hardwood will lead our Misima exploration team.

“Andrew brings specialised skills within the Asia Pacific region – PNG and Australia – and will be an invaluable addition to the on-ground team at Misima.”

Exploration success

Corbett continued: “Stuart joined Kingston in April 2019 and alongside ChRead More – Source

Australia
  • Looking to develop world-class uranium project in Spain

  • Salamanca Project has near surface, high-grade deposits

  • Strong financial position with A$100mln in cash on balance sheet at end-December

What Berkeley Energia does

Berkeley Energia Limited (LON:BKY) (ASX:BKY) is developing a world-class uranium project in a historic mining area in western Spain, about three hours west of Madrid.

Following recent Spanish ministerial approval, the company has now received all the European Union and national level approvals required for the initial development of the Salamanca project and is awaiting local licences.

The large scale uranium area has the potential to support a long-life mining operation, with near-surface, high-grade deposits for very low operating costs.

The group has said the project will generate measurable social and environmental benefits in the form of jobs and skills training in a depressed rural community.

It believes the project will also make a significant contribution to the security of supply of Europes zero-carbon energy needs.

How it's doing

Berkeley Energia Ltd (LON:BKY) is working on securing approvals to start building the Salamanca mine and bring it into production.

In January the company reported it continues to engage with the relevant authorities in a collaborative manner in order to facilitate the timely resolution of the pending approvals required to commence construction of the mine

Berkeley said that its Spanish executives had met and had a constructive dialogue with government officials with addRead More – Source

Australia

Broken Hill Prospecting Ltd (ASX:BPL) has announced its renounceable rights offer closed on Monday, February 17, 2020 with applications totalling $1,310,227 – around 52.6% of the total offer.

BPL intends to use the funds raised under the offer to progress work at the La Paz Rare Earths Project in Arizona USA, following the initial success of the maiden mapping and sampling program during October 2019 which led the company to apply for further tenements and double its footprint in the region.

Exploration and metallurgical plans

The company will use the funds to carry out exploration and technical programs focused on metallurgical test work forming a critical part of the scoping study economic assessment of the project which is due in 2020.

This includes: