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Corporate Spotlight

New Energy Minerals are pioneering Vanadium and Graphite mining, exploration, and technology. With the unique Caula Project in Mozambique nearing production they are set to supply the high quality resources critical to the rapidly expanding new energy market.
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Funded and fast tracking graphite and vanadium pro

STRATEGIC INVESTOR

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Strategic Investor, Equity Placement and Joint Venture Partner for Caula Project

ASX Announcement 7 November 2018

Highlights 

  • Agreement with a strategic investor group led by Mr. Louis Ching, a highly influential Hong Kong-based businessman with extensive business interests in China and South Korea 
  • $1.5 million placement in NXE, in two tranches at 6.5 cents (A$0.065) per fully paid ordinary share totalling approximately 23 million shares 
  • $3.5 million project level investment and incorporated joint venture through subscription for new fully paid ordinary shares in Balama Resources Pty Ltd (presently a wholly owned subsidiary of NXE and which holds 80% of the Caula Vanadium-Graphite project) to acquire 50% of its post-issue shares 
  • Settlement of Tranche 1 of the placement by NXE consisting of 17.4 million shares (~$1.1 million) on/before Tuesday 6 November 2018 under the Company’s existing ASX Listing Rule 7.1 placing capacity

New Energy Minerals Limited (“NXE”, the “Company”) (ASX:NXE FRA:GGY) is pleased to announce that it has entered into a binding agreement (“Agreement”), with a Hong Kong-based investor group, in relation to a strategic equity placement and asset level investment and incorporated joint venture in respect of the Caula Vanadium-Graphite project.

The detailed terms of the Agreement are set out in Appendix 1 to this announcement. The Agreement was entered into with UBezTT International Investment Holdings (BVI) Ltd, the private investment vehicle of Mr. Louis Ching (the “Investor”). Mr.Ching has extensive experience in commodity trading and business development in the People’s Republic of China (“PRC”) as well as several other countries in both Asia and Africa. Mr. Ching is the largest shareholder, Chairman and Managing Director of PT International Development Corporation Ltd (“PT International”), a Hong Kong-listed company (00372:HK). PT International is a diversified investment holding company with interests in a registered Hong Kong-regulated asset manager, oil port and storage facilities in the PRC, and is engaged in trading of commodities including copper cathodes and nickel briquettes and investment in other high growth investment projects. Mr. Ching is also a director and Deputy President of STX Corporation a South Korean-listed company (011810:KS) with principal activities engaging in the trading of non-ferrous metals including zinc, nickel and stainless steel, as well as the provision of shipping and logistics services on a global basis.

Dr. Bernard Olivier, Managing Director of New Energy Minerals commented: “This Agreement is an important step forward for NXE in fast-tracking the world-class Caula Vanadium-Graphite project towards development. Mr. Ching’s access to both debt and equity capital throughout Asia, coupled with his extensive experience in commodity trading, will significantly assist in financing the Caula Project, but also in securing offtake agreements in the short term once the project is in production. The Company welcomes Mr. Ching as a strategic investor in New Energy Minerals and looks forward to working with him to move the Caula project into early cashflow.”

Mr.Louis Ching director and controlling shareholder of UBezTT International Investment Holdings commented: “We are very excited to make this strategic investment in New Energy Minerals and the Caula Vanadium-Graphite project. We were attracted to this investment by what we believe is a unique opportunity to achieve near-term production of vanadium and graphite, as well as by the quality and experience of the NXE Board and Management team. We look forward to working closely with the Board to bring our extensive commodity trading experience and networks in Asia to this project.”

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QUARTERLY

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Quarterly Activities Report For The Period Ending 30 September 2018

ASX Announcement 31 October 2018

HIGHLIGHTS 

  • The feasibility study drilling program on the Caula Vanadium-Graphite Project in Northern Mozambique was completed with 3,025m of diamond drilling and 1,130m of reverse-circulation drilling completed in Q3 
  • Caula hosts a JORC (Measured) mica-hosted vanadium resource of 22Mt @ 0.37% V2O5 (0.2% cut-off) for 81,600 tonnes of vanadium pentoxide (180 million pounds) with high-grade intersections up to 1.9% V2O5 1 
  • The Caula Graphite Mineral Resource, which is all in the Measured category, was upgraded to 21.9Mt at 13.4% Total Graphitic Carbon (“TGC”) (8% cut-off) for a total of 2,933,100 tonnes of contained Graphite2 
  • The Company’s Montepuez ruby assets were merged with TSX-V listed Fura Gems Inc. (TSXV.FURA) for A$10 million in shares. Under the agreement the shares will be issued to New Energy Minerals in three tranches over a 20-month period, which will result in New Energy owning approximately 8% of Fura 
  • The Company announced its intention to change the Company name to ‘New Energy Minerals Limited’, to reflect its focus on vanadium and graphite exploration and mining, critical commodities for the rapidly growing New Energy Market.

New Energy Minerals Limited (“New Energy Minerals” or the “Company”) (ASX:NXE FRA:GGY) is pleased to provide an update to the market in relation to the Company’s activities for the period ending 30 September 2018.

Operational Update

Feasibility Study Drilling at Caula Vanadium-Graphite Project

During July 2018 the Company announced that the feasibility study drilling program at its flagship Caula Vanadium-Graphite project in Mozambique was well underway. A total of 4,155m of diamond (DD) and reverse-circulation (RC) drilling completed in Q3 of 2018. The purpose of this program was to:

  • Further expand the existing Caula Vanadium and Graphite JORC Resources 
  • Provide additional core samples for feasibility level metallurgical testing programs 
  • To underpin feasibility studies for the Caula project in Q4-2018 and Q1-2019.

Following this announcement, in early September 2018, the Company updated the market stating that the feasibility study drilling program on the Caula Vanadium-Graphite Project in Northern Mozambique, had been completed ahead of schedule. The drilling program successfully resulted in:

  • An extension of the existing Caula Vanadium and Graphite deposit boundaries to the East, West and South 
  • Additional large intersections of visible graphite and vanadium-bearing mica 
  • Additional core samples for feasibility level metallurgical testing programs 
  • Geological and geotechnical samples for feasibility level tests 
  • Underpinning of pre-feasibility and feasibility studies for the Caula project.

The success of the drilling program resulted in extensions of the existing resource boundaries with visually high-grade coarse (large flake) graphite and vanadium-micas being intersected and logged in amongst others MODD 029, 042 and 043. Furthermore, visible graphite mineralisation has been intersected in all of the additional holes drilled. These results clearly confirm the expansion potential of the existing resource and open-endedness of the Caula vanadium-graphite deposit.

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PRESENTATION

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ECONOMICS

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Caula Vanadium-Graphite Project Scoping Study Shows Exceptional Economics

ASX Announcement 22 October 2018

Highlights 

  • The Study demonstrates the viability of an open pit vanadium and graphite mining operation with outstanding economics 
  • Mine life of 26 years based entirely on the JORC Measured Resources for both vanadium and graphite 
  • 1,877 metres of diamond drilling over 16 drillholes and 99 metres of RC drilling (1 drillhole) were completed by the Company for the Scoping Study 
  • Approximately 4,000 metres of additional drilling, sampling, assaying and further testwork underway (drilling and sampling completed) to support Reserve definition and pre-feasibility studies 
  • New Energy Minerals is now focused on delivering pre-feasibility level studies by Q1-2019 as well as the fast-tracked implementation of Phase 1 of the project targeting 1st cashflows in H2-2018

Cautionary Statements: Scoping Study Parameters
The Scoping Study referred to in this announcement has been undertaken to determine the potential viability of an open pit mine plus an integrated vanadium and graphite processing plant constructed onsite at the Caula Project and to reach a decision to proceed with more definitive pre-feasibility studies and the possible construction of a pilot plant. The Scoping Study has been prepared to an accuracy level of ±35%. The results should not be considered a profit forecast or production forecast. The Scoping Study is a preliminary technical and economic study of the potential viability of the Caula Project. In accordance with the ASX Listing Rules, the Company announces it is based on low-level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further appropriate studies are ongoing and they will contribute to the Company’s ability to estimate any ore reserves or to provide any assurance of an economic development case. This study does not warrant that reserves will be reported. The total LOM production target is in the Measured Resource category. The Company has concluded that it has reasonable grounds for disclosing a production target. The Scoping Study is based on the material assumptions outlined elsewhere in this announcement. These include assumptions about the availability of funding. While New Energy Minerals considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved. To achieve the range of potential mine development outcomes indicated in the Scoping Study, additional funding will be required. Investors should note that there is no certainty that New Energy Minerals will be able to raise funding when needed. It is also possible that such funding may only be available on terms that dilute or otherwise affect the value of New Energy Minerals’ existing shares. It is possible that New Energy Minerals could pursue other ‘value realisation’ strategies such as sale, partial sale, or joint venture of the Project. If it does, this could materially reduce New Energy Minerals’ proportionate ownership of the Project. The Company has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement and believes that it has a ‘reasonable basis’ to expect it will be able to fund the development of the Project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

New Energy Minerals Limited (ASX:NXE FRA:GGY) is pleased to report the results of an independent Scoping Study completed by mining consultant group Bara International (“Bara”) on the Company’s 80% owned Caula Vanadium Graphite Project located in Mozambique.

1. Caula Vanadium and Graphite Project Scoping Study Outcomes 

New Energy Minerals commissioned Bara International (“Bara”) to coordinate and complete a scoping study report on the Caula Vanadium-Graphite Project, in Northern Mozambique. See page 32 for a full list of consultants used for the study.

The Scoping Study was undertaken to an overall ±35% level of accuracy and examined all facets of geology, mining, processing and supporting infrastructure and included a site visit by the consultants in June 2018. The Scoping Study was prepared on the project level and assumes 100% project ownership1 . All amounts are in United States Dollars (“USD” or “US$”) unless otherwise stated. Production targets are based 100% on JORC Measured Resources.

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CAULA

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Caula Testwork Delivers High Grade Vanadium Concentrates

ASX Announcement 3 October 2018

Key Points 

  • Preliminary metallurgical testwork focussed on vanadium recovery has produced outstanding results, through bench-scale Wet High Intensity Magnetic Separation (WHIMS), after extraction of graphite from the same feed material 
  • Preliminary WHIMS testwork on composite samples from the Fresh Zone has resulted in a Cleaner Concentrate grade of 1.66% V2O5 at a recovery rate of 80.6%. Results were achieved from an overall feed grade of 0.401% V2O5 before graphite extraction 
  • Combined Cleaner and Scavenger Concentrates from WHIMS resulted in a recovery rate of 90.8% with a concentrate grade of 1.42% V2O5 
  • These excellent preliminary vanadium metallurgical results from the WHIMS testwork further demonstrate the potential of combined vanadium and graphite extractions from the Caula Project 
  • Quantitative mineralogy studies are underway to investigate mineral associations in vanadium concentrate, with initial studies confirming micaceous nature of the concentrate 
  • Extraction process for vanadium hosted in mica and silicate minerals are significantly different from vanidiferous titanomagnetite (VTM) deposits 
  • Ongoing metallurgical testwork is aimed at improving vanadium recovery concentrate grades and recovering high-purity (>98% V2O5) vanadium pentoxide 
  • Caula Scoping Study nearing completion with report expected around 5 October 2018

Mustang Resources Ltd (“Mustang”, the “Company”) (ASX:MUS; FRA:GGY) is pleased to announce that preliminary vanadium testwork has produced outstanding recovery and concentrate results, from bench-scale metallurgical testwork, on ore from the Fresh Zone of the Caula Vanadium-Graphite Project in Mozambique. Through the integrated graphite and vanadium flowsheet, the testwork utilised Wet High Intensity Magnetic Separation (WHIMS) on composite samples, which resulted in a Cleaner Concentrate grade of 1.66% V2O5, with a recovery rate of 80.6%. Results were achieved from an overall feed grade of 0.401% V2O5, before graphite extraction. The Caula Project is located along strike from Syrah Resources’ (ASX: SYR) worldclass Balama graphite-vanadium project in Mozambique

Mustang Resources’ Managing Director Dr. Bernard Olivier commented: “These preliminary vanadium concentration and recovery results achieved through a simple magnetic separation process (WHIMS) are truly outstanding. Concentration through a WHIMS process is highly economical compared with other concentration processes and requires no expensive nor complicated reagents. I urge investors to compare our exceptional preliminary concentrate grades of around 1.7% V2O5 and 81% recoveries with other vanadium-dedicated projects. Furthermore, our vanadium grades and recoveries are in addition to the exceptional grade and quality of graphite extracted from the same material.”

The Caula Project is in the unique position of hosting both exceptional quality and high-grade graphite (up to ~99% TGC concentrates and 68% large to jumbo flake sizes1 ), in addition to high grade vanadium, within the shallow mineralisation of the same deposit. Magnetic separation testwork has been performed on fresh rock (Fresh Zone) samples at a nominal grind size and vanadium concentration bench-scale testwork was preliminary in nature, yet has already delivered exceptional results, which the Company considers could form the basis of a commercially viable operation.

The bench-scale metallurgical testwork was conducted on a composite diamond drillcore sample weighing approximately 62kg located in the Fresh Zone of drillhole number MODD018. The composite sample comprised diamond core with a down-hole depth of between 160m and 212m. Assay analyses of the composite returned a feed grade of 0.401% V2O5 and 16.0% TGC. The composite material was stage-ground in a laboratory rod mill to a nominal grind size of P100 0.50mm (500 μm). The composite sample of fresh diamond drillcore was first subjected to a simplified rougher and cleaner graphite flotation procedure to recover the majority of the graphite.

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