Welcome to our roundup of some of the most popular mining investment, exploration, and development stories on Theassay.com from the last seven days.
Financing and M&A
Financing news this week commenced with Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF | FRA: 2D9) closing the first tranche of its non-brokered private placement announced on 13 May 2022. The second and final tranche to complete the offering, is expected to close near 25 May 2022.
Ascendant Resources intends to use the net proceeds from the offering to make the next earn in option payment to satisfy the requirements needed to increase its ownership of the Lagoa Salgada project to 50%, advance the Lagoa Salgada feasibility study, and use for working capital and general corporate purposes.
Eloro Resources Ltd (TSXV: ELO | OTCQX: ELRRF) also closed its previously announced bought deal financing for gross proceeds to the company of C$9,775,057.50.
The offering was underwritten on a bought deal basis by Cormark Securities Inc. as underwriter. Haywood Securities Inc. participated as a special selling group member in connection with the offering. The net proceeds from the offering will be used for continued exploration and development of the company’s Iska Iska project in Bolivia.
New exploration and development
Arafura Resources Ltd (ASX: ARU) has signed a non-binding memorandum of understanding (MoU) with one of the world’s most progressive automotive groups, South-Korean based Hyundai Motor Company.
The MoU provides a framework for the parties to negotiate a binding offtake agreement for the supply of up to approximately 1,000 – 1,500 tonnes per annum (tpa) of NdPr Oxide from the Nolans Project in Australia’s Northern Territory to commence in 2025 for a seven-year term.
“The signing of the MoU represents a fantastic outcome and validates the Tier-1 credentials of the Nolans Project as one of the world’s premier next generation NdPr ore to oxide projects,” Arafura’s Managing Director, Gavin Lockyer, said.
Exploits Discovery Corp. (CSE: NFLD | OTCQX: NFLDF | FSE: 634-FF) provided an update on its fully funded 2022 exploration programmes focused along the interpreted Appleton Fault, where recent significant high-grade gold discoveries have been revealed and the remaining final assay results from the company’s 2021 drilling programme at the Schooner, Little Joanna, and Jonathan’s Pond targets have been announced.
Exploits’ crews are actively in the field on a full-time basis, focused on results-driven prospecting, geological mapping-sampling on a prioritized list of prospective targets The company has also expanded its local Gander exploration team in anticipation of an extensive and aggressive field campaign this year.
Krakatoa Resources Ltd (ASX: KTA) has identified a maiden exploration target at its Tower prospect, representing just one of many prospective ionic clay REE prospects at its 100% owned Mt Clere project located in the north-western margins of the Yilgarn Craton, Western Australia.
Based on recent drilling and geological interpretation, the exploration target has been estimated at 87 to 519Mt grading 580-1120 ppm TREO.
“The discovery of clay hosted REE’s is now enhanced with the substantial prospective exploration target,” CEO, Mark Major, said.
Drilling results
In drilling headlines, we heard that American West Metals Ltd (ASX: AW1) received promising assay results for the third diamond drill hole completed at the West Desert Project in Utah.
Drill hole WD22-02 was designed for metallurgical testing of the near surface ore lenses and was drilled to a downhole depth of 233.8m. WD22-02 intersected a very thick interval of zinc, copper, gold and indium mineralization beginning at approximately 60 vertical metres from surface.
Managing Director, Dave O’Neill, said the drill hole confirms the continuity near surface of the Main Zone of the West Desert Deposit and is supportive of the potential for an open pit development scenario.
Tesoro Gold Ltd (ASX:TSO | OTCQB: TSORF) has unveiled a significant Mineral Resource Estimate (MRE) update for the Ternera Gold Deposit at the company’s El Zorro Gold Project in Chile. The updated MRE for the Ternera Gold deposit now stands at 1.1Moz at a grade of 1.12g/t Au using a 0.3g/t Au cut-off grade with 46% of the MRE is classified as Indicated.
The updated MRE highlights the continuous, higher-grade portions of the deposit, at a 1g/t Au cut-off the MRE contains 715koz at 2.31g/t Au. The drilling completed since July 2021 has resulted in a +570% increase in Indicated Resources which now stands at 503koz.
Also in the news
Finally, nickel mine developer, Horizonte Minerals Plc (AIM: HZM), released a sustainability report this month, as it commences construction of the tier-1 Araguaia nickel project in Brazil.
Jeremy Martin, Chief Executive Officer of Horizonte, commented, “At Horizonte, we understand that value generation is inherently linked with sustainability. Nickel is a critical metal in the clean energy transition with demand growing at an unprecedented pace.
“The production of nickel, however, comes with environmental and social impacts. To balance these, in 2021 we commenced technical studies and programmes that will help us to design controls so that wherever possible, we manage these risks whilst enhancing the outcomes of the many benefits that our operations will bring.”
Thanks for reading, and don’t forget to subscribe to The Assay Weekly newsletter.
