Western Areas Ltd

WSA Details

Western Areas Limited (ASX: WSA) has reported that the final June shipment from the Port of Esperance to occurred on 30 June 2017. Accordingly, nickel in concentrate sales and cash receipt of A$9m will be recognized in the FY17 reporting period. The Company will end the fiscal year with A$140m cash at bank, which includes free cashflow of approximately A$28m for the June quarter. Further, the Company acknowledges the efforts of the Port of Esperance for completing the crane maintenance ahead of plan and its logistics partner Merchant Shipping for ensuring a challenging schedule was met.

Recently, the company has trebled the defined high grade Massive Sulphide Mineral Resource at its Cosmos Odysseus Project. Key highlights from the latest mineral resource update include 311% increase in the total Massive Sulphide resource to 22,838 nickel tons grading 8.4% Ni, which now includes 8,836 nickel tons grading 6.1% Ni in the Indicated category and 78% increase in the Odysseus North disseminated indicated resource to 81,156 nickel tons grading 2.6% Ni (previously 45,519 nickel tons grading 2.8% Ni). Further, there is an overall increase in the indicated to inferred disseminated resource ratio from 77% to 94%, which includes a ratio increase of 56% to 93% in Odysseus North, and increase in indicated resource provides greater flexibility to the proposed mine design and schedule of the Definitive Feasibility Study (DFS). We maintain a “Buy” recommendation on the stock at the current price of $2.10


WSA Daily chart; (Source: Thomson Reuters)

Independence Group NL

IGO Details

Lake Mackay JV Field Activities to Recommence: The diamond drilling program at Grapple will increase the understanding of the style of mineralization while also potentially growing the deposit. Further, the encouraging results so far are evidence that Lake Mackay has the potential to be a new met allogenic province. IGO has only tested the initial anomalies identified within areas which are effective for soil sampling on about 7% of the JV tenure. The success of intersecting mineralization from the limited programs completed supports the concept, generated from continental-scale targeting, that the Lake Mackay Project could represent an emerging new met allogenic province. Currently, a four hole, 1,450-meter diamond drilling program is scheduled to commence in the second half of July 2017 at the Grapple Prospect to further define the size and grade of mineralization. DHEM will be conducted as the drilling program is ongoing and the results from this will be used to modify the drilling plan in real time to target the EM plates that are generated. Moreover, logging of diamond core and subsequent analysis will increase the understanding of the stratigraphic/structural controls of mineralization and the nature of the mineralization. Given the ongoing developments, progress at Nova project and its contribution to overall operating margin going forward,we maintain a “Buy” recommendation on the stock at the current market price of $3.18


IGO Daily chart; (Source: Thomson Reuters)

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