joanwan some reading to help you fill in the time .And for the interest of the punters .
Tough year in Fraser Range
WHILE first production from Nova, rumours of South32 being interested in the region, and Mark Creasy being onto something was the good news from the Fraser Range in 2016, none of that can disguise the fact that 2016 was a bit of a disappointing year for those plying their exploration trade in the region.
Michael Quinn07 Dec 20169:37 Feature
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TOPICS (select for more information):
Copper NickelNickel 2016 YEAR IN REVIEW 2016Independence Group Legend Mining Mark Creasy MMG Orion Gold Segue Resources South32Australia
Simply put, this is a very difficult region to explore and despite well over $A100 million being expended since the Nova find, there’s been no subsequent cause to reach for a cigar.
On the other hand, the Nova find being so hugely valuable means the region will likely remain attractive for some time yet.
The big positive in 2016 was first nickel-copper concentrate being produced ahead of schedule in late-October at Independence’s $A443 million development, with the operation set to annually produce an average 26,000t of contained nickel and 11,500t of contained copper at an average all-in sustaining cost of $A1.83 per payable pound of nickel (after by-product credits) over an initial mine life of 10 years.
Mindful the clock starts ticking once production starts, Independence spent the second half of the year aggressively adding to its position in the region via deals joint venture deals with juniors Buxton and Sheffield, and taking over Windward.
Meanwhile there have been rumours of South32 being interested in Independence/Nova, and while speculation on these sort of matters can be created on the barest of information, MNN was told by a long time exec with links to the Fraser Range that there has been far too much smoke over the past six months for the rumours to be completely dismissed.
In reality, South32 may be like everyone else though, in being keen to see some of the claimed exploration potential be revealed.
However, waiting until another discovery is made will come at an increased price.
Another rumour is that Creasy has a find on his hands.
While getting information out of the wily prospector is about as easy as, um, making a big discovery in the Fraser Range, the chat in 2016 was of him flying to site – which is said to be unusual because of a rumoured fear of flying – and of a substantial exploration now being established.
Rumour, rumour, rumour!
On the fact-front, nothing too exciting.
Hong Kong-listed and Melbourne-headquartered MMG continued work on ground held by Segue Resources following formation of their joint venture just over a year ago.
According to Segue, EM and gravity surveying has been undertaken. Drilling is awaited.
Another junior Matsa Resources set up collaborative research project jointly funded with the Commonwealth Scientific and Industrial Organisation (CSIRO), to review the exploration database and come up with beguiling targets.
Independence too is in bed with the CSIRO, with it talking late in the year about a collaboration with the government agency and the University of Western Australia to “embed” a post-doctoral researcher into the miner.
Elsewhere, major ground-holder (nearly 4000sq.km!) Orion Gold is understood to be keen to continue work but also having to deal in 2016 with the reality of having funding challenges.
Orion said during the year it was in discussions with several parties “who have expressed interest to become involved”.
One junior that isn’t cash-strapped and as a result one of the very few to actually have been active on the ground in the field in 2016 is Legend Mining, headed by Mark Wilson and featuring ground vended-in by Creasy.
Legend is a little over 12 months into a systematic exploration push and it had “technical success” with its drilling in 2016 at its Rockford prospect.
And with $A12 million or so to its name has the funds to keep the dream alive for a few years yet.
No big hits then in the Fraser Range in 2016 – at least not publicly revealed ones at least! – but as they say, there’s always next year.
Good luck
Zubric
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