News

Lynas Rare Earths has officially commenced the initial feed of Mount Weld material at its Kalgoorlie processing facility in Western Australia. This significant achievement comes after successfully concluding kiln heating and other essential activities, signaling the transition from the commissioning phase to the facility's first production phase and subsequent ramp-up.

Expressing enthusiasm about reaching this milestone, Lynas' CEO and Managing Director, Amanda Lacaze, stated, "We are thrilled to have achieved the first feed in Kalgoorlie. This marks an exciting step forward as we expand our operational presence and enhance our capacity to meet the increasing global demand for separated rare earth materials."

Highlighting the significance of the Kalgoorlie rare earths processing facility, Lacaze emphasized that it is Australia's inaugural value-added rare earths processing facility, making it a project of great importance for both Lynas and the broader Australian critical minerals industry.

In October, Lynas Malaysia received a license variation allowing the ongoing importation and processing of lanthanide concentrate from Lynas’ Mount Weld mine. The Lynas Malaysia plant is currently undergoing a temporary shutdown as efforts to augment downstream processing capacity are underway, with production set to resume in January 2024.

The Kalgoorlie rare earth processing facility will gradually introduce Mixed Rare Earth Carbonate (MREC) to the Lynas Malaysia plant, starting in the late March quarter. The volume will increase in tandem with the controlled ramp-up of the Kalgoorlie facility. This strategic approach ensures a smooth integration of production processes between the two facilities.

The approval for Stage 3 of the conservation management plan and exploration drilling program has been granted by the Western Australian Government for Chalice Mining's Julimar exploration project.

Commencing shortly, the exploration drilling will span the interpreted strike length of over 30 km within the Julimar Complex, situated in the western wheatbelt region of WA. The comprehensive initiative includes targeted exploration diamond drilling at the Torres, Jansz, and Baudin targets, additional exploration drilling at Hooley, and air-core drilling covering the entire Julimar Complex.

The primary goal of this drilling program is to evaluate the potential for discovering high-grade nickel, copper, and platinum group elements (PGE). The air-core program specifically focuses on assessing the full extent of prospective ultramafic-mafic geology across the Complex, identifying new targets for subsequent drill testing.

Anticipated to extend for a minimum of six months, the exploration endeavors adhere to strict environmental management and monitoring requirements outlined in the program of work and conservation management plan. Chalice Mining emphasizes the commitment to environmental protection by confining all drilling activities to existing access tracks and non-vegetated areas, ensuring minimal impact on the environment. The company will maintain the same stringent environmental controls applied in the Julimar State Forest, utilizing small-footprint tracked drill rigs on established tracks and non-vegetated zones.

The Julimar exploration project encompasses the Gonneville deposit, which recently demonstrated "excellent results" in bench-scale hydrometallurgical test work.

Liontown Resources has finalized an agreement with the Mid West Ports Authority (MWPA) in Western Australia to facilitate the export of lithium from Kathleen Valley. The services and access agreement, spanning an initial 10 years, will enable the export of lithium spodumene concentrate from the Port of Geraldton to global Tier-1 offtake partners, including LG Energy Solution, Tesla, and Ford Motor Company.

The approval of the port agreement by WA Ports Minister David Michael marks the conclusive step in establishing a robust supply chain for exporting lithium ore from Kathleen Valley. Liontown's Managing Director and CEO, Tony Ottaviano, expressed gratitude to the Mid West Ports Authority and highlighted the Port of Geraldton's world-class facilities and growth potential. Liontown is committed to supporting the diversification of critical minerals exports for at least the next two decades, with the first exports expected to commence in mid-2024.

The agreement incorporates extension options for an additional 10 and three years, aligning with the anticipated mine life of the Kathleen Valley project. Following the successful execution of a share purchase plan, securing the necessary funding, the project is poised for future growth.

In a strategic move, Liontown announced a partnership with Qube to provide comprehensive pit-to-port logistics solutions. This collaboration includes road transportation and port-side storage management services, ensuring a controlled transfer of the product directly onto MWPA's automated ship loading infrastructure. The integrated logistics solution prioritizes industry-leading safety systems, especially in the transportation of bulk materials by road and onto ocean-going vessels. Liontown looks forward to commencing exports in mid-2024 and acknowledges the collaborative efforts that have strengthened its position in the critical minerals market.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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