Avoca Resources Increases bid for Dioro Exploration NL

Dec. 29 (Bloomberg) — Avoca Resources Ltd., an Australian gold producer, made a new A$115 million ($102 million) cash and scrip bid for rival mining company Dioro Exploration NL, countering an offer from Ramelius Resources Ltd.

Avoca offered 65 Australian cents in cash and 0.325 of a share, valuing Perth-based Dioro at A$1.25 a share, Perth-based Avoca said today in a statement to the Australian stock exchange. The offer is final, Avoca said today. The company ended an earlier bid for Dioro in August after gaining a 45 percent stake in the company.

Dioro declined 0.4 percent to A$1.235 at 12:57 p.m. Sydney time today. Avoca fell 0.5 percent to A$1.835 and Ramelius increased 0.9 percent to 56 cents.

Gold has climbed 25 percent this year, heading for its ninth straight annual gain, and last traded at $1,105.20 an ounce. Avoca wants control of Dioro to help boost output which would rise to 270,000 ounces a year if their operations were combined, the company said today.

Ramelius, owner of a 35 percent stake in Dioro, raised its all-share bid 5 percent on Dec. 18 to 2.1 of its shares for every Dioro share, valuing the company at A$107 million, the Adelaide-based company said Dec. 18. Ramelius first announced its takeover offer on July 30.

Dioro declined 0.4 percent to A$1.235 at 11:23 a.m. Sydney time today. Avoca advanced 0.8 percent to A$1.86 and Ramelius increased 0.9 percent to 56 cents.

Dioro advised its shareholders to take no action on the raised Ramelius offer, according to a Dec. 18 statement. The company owns a 49 percent stake in the Frog’s Leg gold mine in Western Australia state which produced 22,022 ounces of gold in the three months ended Nov. 30, Dioro said today in a separate statement.

Rare Earth Trade Leads to Murders and “Dirty” Mines

At the moment rare earth elements – essential for a cleaner, greener future – come almost entirely from China. And from what have been called some of the most environmentally damaging mines in the country.
What needs to be clearly understood is that these rare earths – admittedly in pockets – exist elsewhere in the world. Not in great quantities. Not in every country. But they do exist. It is just that it is more expensive to mine them to environmentally acceptable standards and they cost more because of the wages differential.
While it could be reported that in Washington, Congress is fretting about the US military’s dependence on Chinese rare earths, and has just ordered a study of potential alternatives, the answer is fairly simple. Time and money. If the rest of the world decided that it needed these rare earths from somewhere other than China then this could happen – but at a price.

“In many places, the mining is abused,” said Wang Caifeng, the top rare-earths industry regulator at the Ministry of Industry and Information Technology in China. “This has caused great harm to the ecology and environment.”

There are 17 rare-earth elements – some of which, despite the name, are not particularly rare – but two heavy rare earths, dysprosium and terbium, are in especially short supply, mainly because they have emerged as crucial ingredients of green energy products.

Tiny quantities of dysprosium can make magnets in electric motors lighter by 90%, while terbium can help cut the electricity usage of lights by 80%.

Dysprosium prices have climbed nearly sevenfold since 2003, to $53 a pound. Terbium prices quadrupled from 2003 to 2008, peaking at $407 a pound, before slumping in the global economic crisis to $205 a pound.

Stephen G. Vickers, the former head of criminal intelligence for the Hong Kong police who is now the chief executive of International Risk, a global security company, said a close-knit group of Mainland Chinese gangs with a capacity for murder dominates much of the mining and has ties to local officials.

DNA reports the West ducked this issue until the possibilities of shortages and rationing arose.

David Kennedy, president, Great Western Technologies, which imports Chinese rare earths and turns them into powders that are sold worldwide, said, “I don’t know if part of that feed, internal in China, came from an illegal mine and went in a legal separator.” Which probably means that the West is going to have to start mining its own deposits. But in a responsible way.

Proverbs 20:15 (New International Version)

15 Gold there is, and rubies in abundance,
but lips that speak knowledge are a rare jewel.

You are a new creation in Christ

 ^16-20Because of this decision we don’t evaluate people by what they have or how they look. We looked at the Messiah that way once and got it all wrong, as you know. We certainly don’t look at him that way anymore. Now we look inside, and what we see is that anyone united with the Messiah gets a fresh start, is created new. The old life is gone; a new life burgeons! Look at it! All this comes from the God who settled the relationship between us and him, and then called us to settle our relationships with each other. God put the world square with himself through the Messiah, giving the world a fresh start by offering forgiveness of sins. God has given us the task of telling everyone what he is doing. We’re Christ’s representatives. God uses us to persuade men and women to drop their differences and enter into God’s work of making things right between them. We’re speaking for Christ himself now: Become friends with God; he’s already a friend with you. (2 Corinthians 5:17, The Message)

Merry Christmas From Perth 35C

To all our friends and family, wishing you all a Merry Christmas and an amazing 2010.

Christmas is Australia is about: family; barbeque’s, cricket in the park; afternoon sleeps and just relaxing and enjoying the things the Lord has provided. It is a good day to sit and reflect and count your blessings and thank God for being so good to us.

Now Rolf Harris – An Australian Icon

Western Areas NL Celebrates 10 Years and 2,466% Shareholder Return

Perth 24 December 2009

The journey from incorporation as a fledgling junior explorer took place on December 24 ten years ago. Today Western Areas NL (ASX: WSA) is one of the world’s high-grade sulphide nickel miners.
Managing Director Julian Hanna said that only last week the company was rated as the tenth best company of the ASX All-ordinaries list of 500 companies based on shareholder returns over the past decade.

This was based on the estimated return of 2,466% to Western Areas’ shareholders between January 1, 2000 and December 17 this year — adjusted for re-capitalisations and equity restructures.

The company took over the dormant Forrestania nickel licences that had been mined by Finnish company Outokumpu Oy and made major discoveries in the old mines at depth and found the high grade Flying Fox and Spotted Quoll deposits.

Hanna said Western Areas owns two of the world’s highest grade nickel mines with a combined production target of 25,000t (55 million lbs) nickel per annum.

“We expect a sharp jump in production by May 2010 coinciding with production from the bonanza grade T5 deposit at Flying Fox overlapping with first high grade ore production from Spotted Quoll,” Hanna said.
“This ramp up should occur at the same time as commissioning of the upgraded nickel concentrator.”
He said that based on known mineral resources and ore reserves, high grade production from the Flying Fox and Spotted Quoll mines has potential to continue for up to 10 years.

Plans were also well advanced to test for further extensions to Flying Fox and Spotted Quoll and potentially to expand production from other deposits at Forrestania. These deposits include Diggers South, Cosmic Boy and New Morning which Western Areas was considering bringing into production provided they don’t impact on expected profits from Flying Fox and Spotted Quoll.

Atlantic Commits to Arrange Debt Finance for Restart of Windimurra Vanadium

ATLANTIC JOINS MINERAL RESOURCES TO REVAMP WINDIMURRA VANADIUM PROJECT

Highlights

- Atlantic joins Mineral Resources to commission the Windimurra Vanadium Project

- Atlantic to acquire 25% equity stake in project vehicle

- Opportunity with strong leverage to vanadium market

- World scale vanadium project

- Clear pathway to project completion and production in 2010

Atlantic Limited (ASX: ATI; Atlantic) announces that it has entered into a heads of agreement with Mineral Resources Limited (MRL) to re launch the Windimurra Vanadium Project in Western Australia.

Under the terms of the heads of agreement, Atlantic will become a 25% equity holder in the project vehicle Midwest Vanadium Pty Ltd (MWVPL) and arrange the new secured debt funding required to complete the commissioning of the project.

The final funding amount is to be determined, but is expected to be sufficient to complete the plant construction and ramp-up to full production.

MRL and the current secured lenders to MWVPL will retain the majority equity stake in MWVPL.

MRL will also complete construction of the plant and continue with the ‘Build Own and Operate’ contract for the project crushing and processing plants.

MRL and Atlantic will now work towards the signing of definitive documentation with the Receiver of MWVPL, including the necessary finance documents, to facilitate the commissioning of the project.

Atlantic Managing Director Michael Minosora said that Atlantic was delighted to join Mineral Resources in completing the Windimurra Vanadium project.

“This is a highly attractive project that in the past has suffered from a combination of adverse factors and circumstances, including high gearing, construction cost over-runs and variable commodity prices,” said Mr Minosora.

“We have an experienced and very successful partner in MRL and we are confident that together we can get Windimurra onto a strong production footing.”

“We are particularly pleased to be working in partnership with MRL, which is a highly credentialed and successful Australian mining services and processing company.”

“Atlantic and MRL are extremely well suited to work together at Windimurra and we look forward to developing a successful and enduring relationship.”

For Atlantic, joining the MRL consortium gives it an equity stake in a specialist metal producer that has world market significance and exposure to potential commodity price upside.

Under the agreement, MRL will continue to operate the crushing and processing plants through its existing ‘Build Own and Operate’ contract entered into prior to MWVPL entering into administration in February 2009.

The heads of agreement is subject to procurement of the new secured debt funding package on terms mutually acceptable to MRL and Atlantic.

Mr Minosora said the transaction is wholly consistent with Atlantic’s strategy to build a portfolio of large scale projects that will provide superior returns to shareholders.

Atlantic applies a highly disciplined, innovative approach to acquisitions and maintains a strong focus on resources projects that are low cost, long life and near production.

The Windimurra transaction is consistent with this strategy and is complementary to Atlantic’s recent signing of a Memorandum of Understanding with Vietnamese state owned enterprise T-MV to develop a major new bauxite project in Vietnam.

Australian Bauxite Makes Dramatic Gain on Listing

Sydney, Dec 24, 2009 – (ABN Newswire) – Australian Bauxite Limited (ASX:ABZ) will commenced trading at 11:00 am today on the Australian Securities and at 3:00pm was trading at 31 cents , following its over-subscribed A$4 million initial public offering (IPO).

The IPO closed 3 weeks early on the back of significant investor support and was well oversubscribed with more than 600 applications received.

Australian Bauxite CEO, Ian Levy said;

“Australian Bauxite is off to a good start. We have already attracted strong investor support and strong interest from prospective customers for our bauxite products. However, one step at a time – our initial task is to confirm the priority bauxite targets then drill them as soon as practicable.

“ABx has a total of 70 million shares on issue, which at the offer price of 20 cents per share represents a market capitalisation of A$14 million.

“The groundwork for our bauxite exploration was laid in the early 1950s through extensive government exploration on the east coast of Australia. Our geological team has over 70 years of combined experience and is led by Jacob Rebek, who cut his teeth at Rio Tinto and CRA for over 33 years.

“Inspirational data reinterpretation and three years of tried-and-true field reconnaissance of thousands of kilometres of ground led to the development of our original geological model.

“Our project area selection was based on three economic determinants – high quality bauxite product, large thickness of the bauxite layer, and good enviro-economic settings, located close to transport infrastructure, coal mines, industrial centres and ports on the east coast of Australia.

“ABx now has a portfolio of 17 tenements, in 3 commercial development areas, all prospective for bauxite; Australian Bauxite is well positioned to become a significant bauxite force.”

About: Australian Bauxite Limited

ABx was incorporated on 23rd September 2009 and was formed specifically for the purpose of acquiring the bauxite interests of Hudson Resources Limited; increasing the value of the portfolio through a staged development program in each of three bauxite provinces which would include exploration sampling, drill testing and analyses from a wider range of targets on all exploration tenements; resource definition drilling and bauxite metallurgical testwork on the more advanced prospects.

Apex Announce 20% Improvement in November

Australian gold producer Apex Minerals (ASX:AXM) has announced development rates underground at Wiluna in Western Australia have continued to show considerable and consistent improvements with November achieving a total rate of 625 metres.

The November result is some 20% higher than October following a consistent monthly improvement which is continuing into December.

This is important in setting up the medium to longer term viability of the mine by opening up multiple ore sources to achieve targeted underground production rates and efficiencies.

Stoping of ore is currently occurring on two levels in the Calais ore-body and two levels in the Henry 5 North ore body. Stoping commenced ay Henry 5 North earlier this quarter and has provided a second independent high grade underground mining area.

During the quarter, Apex has been driving toward the main ore zone at East Lode North and has encountered some strong mineralisation over a 30 metre strike, approximately 2-3m wide with face samples averaging around 10g/t gold in an area where ore was not previously expected.

Development in the main ore body commenced over the weekend. Stoping is expected to commence toward the end of the March quarter, while development toward the Burgundy ore-body commenced in October with first development ore expected in January and stoping commencing in the June Quarter.

Apex chief executive and managing director Mark Ashley said there wre currently about 12,000t at 6g/t gold of broken stoping stocks underground awaiting to be hauled to the surface for immediate processing.

“Typically this would be a much lower number – less than 1,000 tonnes,” Mr Ashley said.

“However Apex has experienced lower than normal levels of underground equipment availability particularly with regard to loaders and trucks over the past two weeks.

“Apex has initiated discussions with the fleet supplier (who also provides on-site maintenance services) at a senior level with regard to improved equipment availability to ensure an effective and speedy resolution.”

He said the assessment of Wilsons deposit at the company’s Gidgee tenements has continued during the quarter, however, it is likely that there may be a delay in being able to provide feed to Wiluna in April 2010 as previously expected.

Apex currently expect a delay of two to three months due mainly to formalities required to upgrade the road between Wilsons and Wiluna. Apex is in discussions with the Wiluna shire in this regard.

Apex would also like to take this opportunity to provide an update on exploration Resource development drilling from underground has been recently expanded with the sourcing of an additional underground drill rig.

Exploration drilling into Calvert and Golden Age extensions will commence in the first half of January and there will also be an ongoing focus on drilling extensions to Henry V and Burgundy.

In addition to the expanded underground exploration program a renewed approach to surface exploration away from the immediate mine environment is being planned commencing with a target generation exercise based on a revised geophysical interpretation and geological modelling of the mineralised structures.

Drilling of these targets is expected to commence during the first half of 2010.

Mr Ashley said the company noted that it was currently expecting production for the quarter to be similar to the September quarter as it developed more ore sources to set up the future of the mine.

Cash on hand at 30 November 2009 was $22 million with all the $70 million senior Secured notes, including a short term $10m element, having been fully repaid (at a cost of $63 million) and with trade and other payables having been reduced from $44 million at 30th June to $14m at the end of November 09.

Flinders Mines to Spin Out Diamond and Phosphate Assets

Flinders Mines plans to spin off its diamond and phosphate exploration assets through a new company to be floated on the Australian stock exchange next year.

The South Australian explorer will shift its focus to its Pilbara iron ore projects in Western Australia and expects the $10 million the initial public offer (IPO) of its non-core assets to raise as much as $10 million.

Flinders Mines expects to hold about 20 per cent of the new company, to be known as Flinders Exploration Ltd, and will fund to a maximum of $1.5 million the offshoot’s exploration program.

The new company will have interests in the large, untapped diamond and phosphate licence areas in South Australia and Western Australia,’ Flinders Mines told the Australian stock exchange on Monday.

Flinders Mines managing director Dr Kevin Wills will be a non-executive director of Flinders Exploration.

Dr Wills said in a statement on Monday that the spin-off would allow Flinders Mines to focus on its Pilbara iron ore development project while also retaining exposure to its diamond and phosphate assets.

Flinders Mines shareholders must agree to the deal and a meeting for that purpose will be called in the first quarter of 2010.

Australasian Resources Balmoral South Iron Ore Project Receives EPA Approval

23 December 2009
Balmoral South Iron Ore Project receives State Government Environmental Approval

Key points:
- State Environment Minister approves construction and operation of the Balmoral South Iron Ore Project

Australian iron ore company Australasian Resources Ltd (Australasian or ASX: ARH) has achieved another critical milestone towards the development of the Balmoral South Iron Ore Project (Project) in the Pilbara region of Western Australia, with the release of the Western Australian Environment Minister’s approval of the Project, subject to the statutory appeals process defined within Section 100(3) of the Environmental Protection Act 1986.

This approval closely follows the release of the positive State Environmental Protection Authority Report and Recommendations on 5 October 2009, and the subsequent release of the Federal Government approval of the Project under the Environment Protection and Biodiversity Conservation Act (1999) on 17 November 2009.

The statutory appeals period, during which the proponent (Australasian) may appeal against any conditions imposed, closes on 7 January 2010.

Release of the State Government approval confirms that the impact assessment process is complete with the Project deemed to be environmentally acceptable. It provides further impetus for Australasian to negotiate and finalise a Project funding agreement with a strategic partner.