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2008

Feb 2008 - Golden Tiger Mining

Golden Tiger Mining NL (GTX) – Making Steady Exploration Progress

  • During the past year Golden Tiger (GTX) has applied a systematic grass roots approach to its Central Dayaoshan exploration Area by applying stream geochem (to delineate the main anomalies), soil sampling (to verify the anomalous areas) and then drilling, which has resulted in an initial focus on the ELs of Changtian, Liaodong, Pingshuichong, Tangmian and Tonghe.
  • The more advanced Weilong Prospect (in NW Guangxi) is undergoing re-interpretation, involving a stacked lode system. Initial drilling has shown a gold/pyrite association and a best intersection of 9m @ 5.5g/t. Drilling was in progress when we visited the site in November 2007.
  • At most prospects that we visited, there were artisanal workings nearby (some old & some new), which provide good exposures to the styles of mineralisation being mined such as usually breccia, quartz veins and/or stockworks. Most mineralisation appeared to be non-refractory and amenable to gravity recovery.
  • At Baishishan in the Liaodong EL, the artisanal activity had advanced to the degree of installing electrical lighting underground and new tunnels being dug. Examination of the underground shows a sizeable brecciated/stockwork area, possibly >25m thick. Drilling started during January 2008.
  • The Shuilong Prospect in the Tonghe EL reported the extremely high sample grades up to 477g/t and 11%Cu in the old workings, with a number of other samples in the >20g/t vicinity. Shuilong is the most advanced of the three prospects at Tonghe, with the other two, namely: Liuqin and Jinkunchong to be soil sampled and mapped during 2008.
  • The Teningding Prospect in Changtian’s EL consists of three areas (two have been artisanally mined) of which probably the open-cut /underground “tunnelling” was used most recently and treated through a small plant with a large shaking table. Sampled grades have been encouraging.

Mar 2008 - Albidon Limited

Albidon Limited (ALB) –Munali Heading For Production from April 2008

  • The appointment of Byrnecut using drilling jumbos has resulted in Albidon exposing the main orebody at Munali in January 2008 (two months ahead of schedule) and it now expects to start feeding ore through the mill in April 2008.
  • The plant at Munali is expected to produce ~9,000tpa Ni (with copper, cobalt platinum and palladium credits), based on a plant design capacity of 900,000tpa. However, 1mtpa appears to be achievable, and the plant has been designed for expansion, which could result in a treatment rates potentially >1.1mtpa.
  • A resource has now been established at Voyager (adjacent west on strike to the main Enterprise orebody) and the understanding of the mineralisation and orebody infers that further extensions to the orebody are possible, especially at depth, such that Munali could still become a Tier 1 orebody (worth >US$1bn).
  • Albidon’s next most advanced Project appears to be its Njame Uranium JV, also located in Zambia and immediately SW of Munali. It appears to have a similar style of banded mineralisation in sandstones to Paladin’s Kayelekera Project further northeast, and is currently undergoing a PFS scheduled for completion in MQ08.
  • Although BHPB pulled out of the Selebi-Phikwe JV in Botswana because it did not meet their potential orebody parameters, ALB has identified a number of targets such as Sunnyside that appear to have Selebi-Phikwe type signature structures.
  • Albidon has a number of other joint ventures throughout Africa in which material progress is being made, with BHPB continuing to focus on Songea Nickel in Tanzania, and Zinifex making encouraging progress with intersections such as 8m @ 11.7%Zn within the historic Bou Aouane mining district at Nefza, Tunisia.

Apr 2008 - Mundo Minerals

Mundo Minerals Limited (MUN) – Bringing its Engenho Gold Mine in Brazil into Production Initially at ~35,000ozpa from May 2008

  • Mundo Minerals Ltd (MUN) currently has three gold mine project areas in Brazil and Peru, being its Engenho gold mine in eastern Brazil (about to start production), its Torrecillas mine in southern Peru (in which it is establishing resources), and the Tocantins area of central Brazil (has a range of opportunities).
  • MUN is a growth story. Although its NPV is A$0.33 based on ~35,000ozpa from Engenho at US$900/oz, if US$950/oz, a higher throughput of 300,000tpa and a grade of 6g/t are achieved (~54,000ozpa), then the NPV is ~A$0.80 (assuming normal tax, if MUN qualifies for Presumed Tax, then add another ~20c). MUN’s target for Engenho is 50 to 60,000ozpa, which appears to be achievable especially with the geochem progress near Mazoca and other possible satellite sources.
  • MUN also has mid-term production targets for Torrecillas of 50 to 70,000ozpa and ~110,000ozpa from Tocantins. And there is the new project of Jaquiera, (near Jacobina, Bahai) in NE Brazil which is currently under a new option and rapid evaluation, as it also displays the preferred characteristics of an old goldfield, proximity to infrastructure and towns, and a non-malarial prone area.
  • MUN is currently driving a ramp and developing a cross-cut in the Torrecillas mine near Chala in southern Peru, to improve the production and access capability compared to the current climb-in incline. Historic average grades on small 1,500 to 2,000ozpa production were ~ 20g/t to 30g/t, although they range from 8g/t to 300g/t over different widths of 20cm to 2m both along strike, and up and down dip.
  • The increase in the width of the Torrecillas footwall vein to ~2m with grades ~2oz/t (59g/t) on the lowest level (No 12, or 2580m above sea-level, only 120m below surface), offers encouragement in the stacked lode system to achieving a 150,000oz resource target before starting a PFS to re-commence mine production.
  • At Tocantins in Central Brazil, MUN has a number of projects/prospects ranging from active and historic garimpeiro (artisan) workings, to greenfields exploration. Grades vary as do the opportunities for open-cut or underground operations.

May 2008 - Silver Lake Res

Silver Lake Resources Limited (SLR) –Building up to >70,000ozpa Gold Production by the end of 2009

  • Silver Lake Resources (SLR) has four project areas in WA, being Mount Monger (which includes Daisy-Milano : a high grade underground mine that has started production at an expected ~35,000ozpa), Murchison (being Comet, Tuckabianna & Moyagee), Rothsay (a small copper-gold mine) and the grass roots Copper Lakes.
  • SLR has a target of producing at 150,000ozpa within 3 years (2011), which could be achievable, based on possibly 50,000ozpa to 70,000ozpa from Mount Monger and a mining operation at Comet/Tuckabianna (although Mount Monger could be capable of achieving 100,000ozpa in its own right).
  • SLR appears to have significant upside potential with both of its current main project areas of Mount Monger’s Daisy-Milano, and Comet/Tuckabianna apparently capable of exceeding expectations in production and grade. Also on a market cap comparison basis to its peers, SLR appears to be well undervalued and capable of achieving a market cap > A$120m.
  • SLR poured their first gold bar on 30 April 2008, at their own 300,000tpa Lakewood plant near Kalgoorlie as part of an initial expected treatment rate of 75,000tpa at 15g/t (35,000oz to 40,000ozpa) from the Daisy-Milano lode. The remainder of the mill capacity is expected to be fed from possible open cuts followed by underground mining one of the >10 other lodes that have shallow workings.
  • At Comet and Tuckabianna, SLR are evaluating re-opening the mines as underground operations, which was considered prior to their closure in 1997, but not undertaken due to the weakening gold price and other distractions. SLR has started a PFS on its Murchison assets (Comet, Tuckabianna and Moyagee) which it expects to complete in the December Quarter 2008.
  • SLR are also evaluating the old Rothsay copper-gold mine that closed in 1991, after limited underground operation, and their Copper Lakes prospect.

Aug 2008 - Panoramic Res

Panoramic Resources Limited (PAN) – Establishing a Company with a life of 10 to 15 years producing ~15,000tpa to 20,000tpa Nickel, that has Significant Upside Potential

  • With both Lanfranchi (LNM)’s Deacon and Kimberley (KNM)’s renamed Savannah orebody both open at depth and growing in width and on strike, the renamed Panoramic Resources appears to have the capability of establishing a company with a life of at least 10 to 15 years, producing ~15,000tpa to 20,000tpa Nickel.
  • The orebody at Savannah appears to be significantly changing and improving at depth with higher widths (possibly >30m thick), different nickel mineralisation styles, and often higher grades (nickel, copper and cobalt) than the Upper Zone of the orebody. Which could result in production of ~0.9mtpa from Savannah alone, a longer life, and at higher grades.
  • The potential size of Savannah has been aided by the delineation of the Northern Ore Zone at the western end of Savannah making a T-bone shape with the Main Zone, which increases the potential strike length of the Lower Zone (there was a non-JORC resource of up to ~80,000tNi in the Lower Zone [below the 500 fault]).
  • Savannah currently receives significant by-product credits of ~A$4.00/lb to A$4.20/lb, which should increase with the higher copper grades towards the west and at depth, especially if KNM also needs to produce a copper concentrate.
  • There is also significant exploration upside potential at Lanfranchi, based on a number of target areas to be EM tested, plus the possibility of replication under the northern dome, having established a “hangingwall” position of ~2m @ 7%Ni.

Oct 2008 - Albidon Limited

Albidon Limited (ALB) – Increasing Munali’s Production beyond 10,000tpaNi

  • Albidon’s share price closed at A$0.56 on 10 October 2008, only 6c higher than its 50c listing price in March 2004. During the past 4 ½ years, Albidon discovered one of the world’s lowest cost nickel mines in Zambia, financed, constructed and brought it into stoping production by September 2008. Even at the current nickel price of US$5.2/lb, Albidon has an NPV 3 x its current share price, at A$1.70/share.
  • Albidon has announced an expansion from 0.9mtpa to 1.2mtpa using the available capacity in the circuit, being the flash flotation (expected 16% to 20% recovery) and additional tanks, raising nickel production to ~10,000tpaNi from MQ 2009.
  • Although the initial stoping grades appear likely (as expected) to average ~1%Ni, the southern end of the orebody appears to be much richer (at ~2% to 3%Ni) being different nickel mineralisation (similar to PAN’s Savannah) comprising of small country-rock breccia fragments in massive nickel (that may plunge northwards).
  • ALB is undertaking a number of studies aimed at increasing production, such as DMS of the lower grade 0.3% to 0.5%Ni fraction (doubles the grade before adding it to the main mill feed), sinking a decline into Voyager (and probably linking to Enterprise North for greater flexibility), and examining possible open-cuts at Intrepid and elsewhere on the current northern extremities of the intrusion.
  • There appears to be increasing evidence that the intrusion and the orebody plunges under limestone cover to the north. Recent geophys has identified possible deeper extension targets to the north and a possible faulted block to the south, both of which are expected to be drilled during December Quarter 2008.

Nov 2008 - Golden Tiger

Golden Tiger Mining NL (GTX) –Seeking JV Farm-in Partners

  • Golden Tiger has made significant exploration progress during the past year and has delineated at least one company-making project area, being a porphyry-copper target at Shuilong, a possible Carlin target and other gold mineralisation at Weilong, vg in skarn mineralisation and other possibilities at Pinghe (the historical GTX original drilling mostly missed it), and other potentially promising targets.

Dec 2008 - Mineral Deposits

Mineral Deposits Limited (MDL) – Bringing Sabodala in Senegal into Gold Production at ~170,000ozpa from January 2009

  • Mineral Deposits (MDL) has two company-making projects in Senegal, West Africa. The first being its Sabodala Gold Project is under construction and expected to pour its first bar of gold by January 2009. The second is the Grande Côte Zircon (mineral sands) Project which has yet to complete financing (possibly in mid-2009), enter construction and move into production.
  • The rated (hard rock) design capacity of the Sabodala’s Ausenco constructed plant is 2mtpa, which is expected to achieve the usual 20% above capacity rating for throughput ~2.4mtpa. However, there are a number of additional oxide sources (including the skin over the orebody) that could take the initial throughput closer to 3mtpa, and the plant has clearly been designed for expansion.
  • Sabodala expects to produce ~170,000oz (from 2mtpa at ~3g/t) in its first year (CY09). However, unexpected mineralisation at up to 10g/t has already been encountered in the pre-strip, and with the pit starting on the historical mine that averaged ~4.5g/t, the first year of production could be >190,000oz.
  • There appear to be many similarities between Sabodala’s and Avoca’s gold mineralisation at Higginsville with flats and steeply dipping lodes in gabbros and volcanoclastics, plunging northwards. The mine life could be >10 years with additional higher grade underground components (initially mining one of the flats in the walls of the pit in years 5 to 8, being possibly ~400,000tpa at ~5g/t).
  • MDL are increasing their understanding and interpretation of the mineralisation controls in the Sabodala pit, before extending that knowledge into the regional discoveries (some of which appear to have potential).

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