News

The Fitzroy group says it is on track to begin longwall production at its new Ironbark No.1 mine next year as the Bowen Basin operation begins to take shape.

The company has shared images on social media showing how the team ‘has taken a site from a paddock to a well-advanced mining operation, driving the drifts in just four short months’.

A company spokesman said the Ironbark No.1 drifts were expected to be completed mid-2022 with the first development units commencing in July 2022.

 

“Longwall coal will commence in late 2023,” he said. “This new project provides many opportunities for existing Fitzroy employees as well as new people wishing to join the group.”

Fitzroy Australia Resources acquired Ironbark No.1, the neighbouring Carborough Downs mine and the Broadlea project from Brazilian mining giant Vale in November 2016.

The State Government approved the mining lease for Ironbark No. 1 in 2018, with the mine expected to produce up to 6 million tonnes per annum run of mine coal, mostly hard coking coal.

The Ironbark No.1 mine, 35km north-east of Moranbah, will share the same CHPP and administration infrastructure as Fitzroy’s existing Carborough Downs mine.

That CHPP facility is also set to process coal from Bowen Coking Coal’s new Broadmeadow East mine from mid-year.

Ironbark_No.1_Fitzroy_2.jpg

Carnaby Resources reports ‘stunning’ drill results from its Greater Duchess copper-gold project in North West Queensland.

Drillhole LFRC120 has turned up the widest high-grade intercept to date at the Lady Fanny prospect, with a result of 68m at 2.4 per cent copper and 0.4 g/t gold – including 42m grading at 3.6 per cent copper and 0.5 g/t gold.

Carnaby said wide, high-grade and very shallow copper-gold mineralisation had now been intersected over a core zone of more than 300m strike length at Lady Fanny.

At Nil Desperandum, recent results include a diamond drill intersection of 33m grading at 4 per cent copper, and 0.5 g/t gold (from 264m deep) including 18m at 6.7 per cent copper and 0.8 g/t gold.

Work there has extended a high-grade breccia shoot discovery a further 180m downplunge.

“These stunning drill results clearly demonstrate the resource and development potential of the Greater Duchess copper-gold project,” Carnaby Resources managing director Rob Watkins said.

“We are discovering and building a pipeline of exceptional and highly desirable copper gold deposits whose intrinsic value will only grow over time as we define and grow the maiden resource and move towards a development timetable.”

Lady_Fanny_drill_tray.JPG

Chatham Rock Phosphate is undertaking a scoping study for a 1Mtpa export mine based on its Korella South tenements in North-West Queensland.

The company said it had initiated the study while awaiting finalisation of its purchase of the Korella mine.

The move follows significant interest from North Asia-based phosphate buyers for a high-grade phosphate rock supply sourced from Korella South.

Chatham said this, combined with the developing acute shortage of low-cadmium phosphate in Europe and soaring international rock phosphate prices, had led to the decision to investigate the feasibility of a significant increase in production.

This export-focused production and sale of phosphate from Korella South would run in parallel with projected domestic annual sales of 250,000 tonnes of rock phosphate from the Korella mine, Chatham Rock Phosphate said. 

The New Zealand-based company made a $12.3 million deal in October to acquire the Korella phosphate site, located 150km south-east of Mount Isa beside Incitec Pivot’s Phosphate Hill operation.

It was subsequently granted regional tenements covering 196sq km (Korella South) late last year.

The proposed 1Mtpa mine at Korella South would export low-cadmium Direct Shipping Phosphate Ore through an expanded Port of Townsville.

“With the Korella South tenement only 5km from rail at Phosphate Hill the plan is for a simple extension of the rail and construction of a balloon loop or rail siding,” the company stated.

“The scoping study will involve Queensland Rail, as well as above-rail service providers, who have already expressed interest to be involved in the scoping study.

“The Phosphate Hill to Port of Townsville rail, under the proposed plan, would be extended onto newly reclaimed land at the Port of Townsville and matched with new rail unloading facilities, bulk storage, conveyors, new ship loader and berth.”

The company believes its project has the potential to attract government funding through the Northern Australia Infrastructure Facility.

The scoping study is expected to be completed by July 2022.

1651890296647_1.jpg

Stanmore Resources has successfully completed its $1.8 billion acquisition of mining giant BHP’s 80 per cent interest in BHP Mitsui Coal (BMC).

The deal puts it in charge of the South Walker Creek and Poitrel mines in the Bowen Basin as well as the undeveloped Wards Well coal project.

“The completion of this transaction marks an important milestone in our history,” chief executive officer Marcelo Matos said.

“Metallurgical and PCI coal prices remain at historically high levels and Stanmore will benefit from those prices with the addition of production of approximately 10 million tonnes of marketable metallurgical
quality coal creating substantial additional value for the company.”

The amounts payable by Stanmore on completion of the acquisition were funded by Stanmore’s cash reserves following a pro-rata entitlement offer in March and through Stanmore and its subsidiaries fully drawing down the debt facilities including the US$625 million acquisition debt facility.

The company said full funding was in place for the purchase consideration as well as for a completion adjustment of approximately US$200 million for working capital.

Stronger market should translate into a healthier balance sheet and cash position at BMC post completion than envisaged when the sale agreement was signed, Stanmore said.

Stanmore operates the Isaac Plains coal complex near Moranbah, where it recently began mining at the new Isaac Downs pit.

It is looking into building a haul road between Isaac Downs and Poitrel to take advantage of available washing capacity at the Red Mountain CHPP acquired as part of the BMC deal.

The company is also part of a joint venture with M Resources (MetRes) which acquired the mothballed Mavis Downs and Millennium site from Peabody Energy in July.

Last quarter, a combination of truck and shovel production and auger mining from the highwall at the Millennium open cut produced 157kt of product coal.

Preparation and construction of an underground mine at the site is continuing to schedule, with first development coal expected in Q3 2022.

1651617827245.jpg

A silica sand project in Far North Queensland is changing hands for $8.8 million, with buyer Carbine Resources viewing it as a near-term development project.

The Sandbox project covers 8104ha about 22km south-southeast of Innisfail.

“It is rare to find a silica deposit that sits within a short distance of an export port with excess capacity in the middle of a resource boom,” Carbine managing director Peter Batten.

 

He said the acquisition fit well with the company’s plans at its existing Muchea West silica project in Western Australia.

“The Sandbox project offers Carbine potential access to near-term development whilst it continues to develop its exciting large-scale Muchea project,” Mr Batten said.

“Our goal through undertaking the Sandbox acquisition is to secure the potential for an earlier stage production and subsequent cashflow scenario with the object of self-funding the development of the Muchea project.”

The purchase takes in the Sandbox silica sands project, which covers a land area of 1300ha (EPM27338) and is owned by FNQ Sand, and an adjoining exploration permit (EPM27696) covering 6804ha owned by Suga Dino.

The $8.8 million purchase price is made up of an initial upfront payment of $500,000 cash upon satisfying the conditions precedent in the term sheet, while the remainder includes the issue of shares (value $5 million), post-production milestone cash payments ($2.5 million) and purchase of freehold land ($800,000).

A substantial drilling program has been completed over an area of 59ha of freehold land.

FNQ has defined a JORC resource of 5.7Mt at 95.80 per cent silicon dioxide, 0.20 per cent iron oxide, and 2.38 per cent aluminium oxide.

Carbine plans to fast-track a scoping study and leverage off the preliminary work carried out by FNQ on the project.

Metallurgical testwork is underway with a target of reducing the iron oxide levels to about 150ppm to suit the solar panel industry.

1651617895200.jpg

Page 1 of 57