News

Doray Minerals Ltd announced today strong earnings and record cash flow for the 2016 financial year, whilst funding and building the Company’s second high‐grade gold mine at Deflector.
Full year ending 30 June 2016 showed revenue of A$131.1 million and net profit before tax of A$17.5 million including a one off A$5.8 million exploration write-down. Doray’s Managing Director, Mr Allan Kelly, said Andy Well had delivered within production and cost guidance for the third consecutive year and the Company looked forward to reaping the benefits of having a second high‐grade gold operation for the first time with the ongoing ramp‐up of production from Deflector.
“Over the last 12 months, we achieved EBITDA of $62.7 million from revenue of $131.1 million, resulting in an outstanding EBITDA margin of 47.8%, amongst the highest of any ASX gold producer,” Mr Kelly said. “Our cash and debt position was also better than expected at the end of the financial year, as a combined result of higher gold prices being received for production at Andy Well and the new Deflector Project coming on line on schedule and within budget.”

Blackham Resources Ltd announced today the latest results received from underground drilling at the Bulletin mine with drilling from the Bulletin Decline continuing to produce excellent results between the historical stopes including:

6.0m @ 26.4g/t Au 
15.6m @ 7.51g/t Au
8m @ 7.05g/t Au

The diamond drill program was designed to infill the lode identified in Blackham’s previous round of drilling between two historical stoping areas. This current program will allow resources to be upgraded from unclassified or Inferred to Indicated.
Blackham’s Managing Director, Bryan Dixon, said “The latest Bulletin drilling has demonstrated the potential to continue growing the Wiluna resources close to surface. An updated Bulletin resource is likely to complement the work we are doing on the Wiluna open pits with both feed sources to be integrated into the Wiluna expansion study currently underway."

Millennnium's latest drilling at Little Wonder outlines high grade gold intersections over a 850m strike. Drilling results obtained grades up to 19 gpt which helps to fullfil Millennium’s strategy to grow mine life at its Nullagine project. The Little Wonder deposit is located approximately 25 km north east of the Project’s processing plant and forms part of the Millennium’s Camel Creek mining centre.
"These results are outstanding and again demonstrate that our strategy to grow the mineral inventory and mine life at Nullagine is delivering substantial results,” Millennium Chief Executive Glenn Dovaston said, “when combined with the strong results announced recently from the initial deep drilling campaign, it is clear that there is the potential to significantly extend the existing mine life.”

Over the past few years, Metals X has made a number of shrewd acquisitions and has built a formidable, diversified mining company. It has three operating gold projects, four process plants with 5.5mtpa combined capacity and has built a gold resource base of 15.4 million ounces and ore reserves of 2.89 million ounces. It currently produces at a run-rate of 220,000 ounces per annum and has a clear plan to double this over the next few years. 
The Company now believes its base metals division can stand alone as a base metals company, with production from its tin and copper assets and expansion and growth assets in tin, copper and nickel. Given prevailing economic and market conditions, the Board of Metals X believes the time is now right, and its shareholders are better served, if the Company looks to separate its gold division from the remainder of the diversified base metal assets. The Company has completed an institutional placement to raise $100.6 million and is now undertaking a share purchase plan to raise up to $15 million.

Regis today announced its Maiden Resource at Tooheys Well of 547,000 ounces. Tooheys Well is located 2.5km south of the Garden Well gold mine and existing 5mtpa processing plant. Regis is currently drilling both immediately north and south of the 750 metres of strike covered by the resource. Regis Chairman Mark Clark said “It is very exciting to see the latest phase of our organic growth strategy deliver a 547,000 ounce maiden gold resource at the Tooheys Well project. With Tooheys Well located so close to the Garden Well processing plant, Regis is already working on this project with a view to delivering a substantial, high grade mill feed satellite project for Garden Well. We also look forward to continuing our intensive exploration effort in the Tooheys Well area and beyond.”
 
 

Ramelius Resources Limited (ASX:RMS) announced today that production Guidance for the June 2016 Quarter has been exceeded with 32,752 ounces of gold produced from the Company’s operations in Western Australia. Ramelius also exceeded previously Upgraded Guidance for FY2016 with a total of 110,839 ounces of gold produced. Production came from their 3 operations Mt Magnet, Kathleen Valley and Vivien. Ramelius cash on hand now stands at close to $A50M. Mark Zeptner today said: “An excellent quarter from the operations teams, bouncing back strongly after a slightly lower March 2016 Quarter. We have finished the 2016 financial year above 110,000 ounces of gold production and will further build on this with 135,000 ounces in FY2017. Our Vivien mine is now commencing stope production and will have a significant impact on our gold production and bottom line margins going forward. On the exploration front, we have effectively doubled our budgeted total expenditure to A$10M, in order to further grow the mine life of our existing assets and also accelerate work on our newly granted tenements in the Tanami.”

Independence Group NL (ASX:IGO) has mined the first development ore at the Company’s Nova Project in Western Australia. The mining of first ore is an important milestone for IGO as it progresses construction and development of the world class nickel-copper-cobalt project. The Project was 90% complete as at the end of May 2016 and remains on schedule, and on budget, to commence production of nickel and copper concentrates in December 2016.

Fear and uncertainty in markets around the world gave a major lift to Gold Miners in Australia. Australian miners benefited from both a rising US gold price and a dropping Australian dollar. Australian Miners Newcrest Mining, Northern Star, Evolution and Saracen Minerals stocks were trading between 8.5% and 12.5% higher. The Australian gold price reached a high close to $1850 during the day.

Doray Minerals recently commenced gold and copper production at its newly acquired Deflector Project, Australia’s newest high‐grade gold/copper mine, located in the southern Murchison region of Western Australia. The first shipment totalled approximately 500 dry tonnes of concentrate produced from oxide material mined from the open pit to date. Following progression of the open pit and firing of the portal, underground access has recently commenced.

Millennium Minerals advise today that it is well on track to reach production guidance and generated $7.1 million in free cash flow (before financing activities) in the March quarter.
Millennium Chief Executive Glenn Dovaston said the results showed the Company had sustained its operational turnaround of last year. “These results highlight the strength of the position Millennium now enjoys,” Mr Dovaston said. “They also demonstrate the cash reserves we stand to accumulate on the back of this strong production and the fact that we no longer have to make debt repayments." “At the same time, we are recording outstanding results with our exploration program, leaving us increasingly confident that we will achieve our objective of growing the Mineral Resource inventory and mine life at the Project”.
Shares were trading at $0.155 up 14.8% today.