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REX MINERALS LIMITED - Corporate Spotlight

Going the whole hog! Rex Minerals announces promising scoping study for its Bells Project... Going the whole hog! Rex Minerals announces promising scoping study for its Bells Project at Hog Ranch, this comes just one month after Rex upgraded the mineral resource estimate at Hog Ranch to 97.6 million tonnes of mineralisation, with an average grade of 0.45 grams per tonne of gold for 1.4 million ounces.More

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Corporate Spotlight

Going the whole hog! Rex Minerals announces promising scoping study for its Bells Project at Hog Ranch, this comes just one month after Rex upgraded the mineral resource estimate at Hog Ranch to 97.6 million tonnes of mineralisation, with an average grade of 0.45 grams per tonne of gold for 1.4 mill
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Investor Updates - PEPR and Hillside Figures July

VIDEOS

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Rex Minerals Makes Strides at Copper and Gold Projects - The Market Herald Live - July 2020



Investor Updates with Richard Laufmann, MD Rex Minerals - PEPR approval and Qtr Results for Rex - July 2020



Noosa Mining Investor Presentation with Richard Laufmann, July 2020



Investor Updates with Cherie Leeden, Hog Ranch Director - Rex Minerals 


Rex releases Bells Scoping Study at Hog Ranch Gold Property in Nevada with Richard Laufmann, MD Rex Minerals - 12/06/2020



Investor Updates with Richard Laufmann, MD Rex Minerals - 18th May 2020


REX SECURES APPROVAL FOR HILLSIDE PEPR

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Rex secures SA Government approval for Hillside PEPR

ASX Release 24th July 2020


Rex Minerals Ltd is pleased to advise that the Program for Environment Protection and Rehabilitation (PEPR) for the Hillside Copper-Gold Project (the Hillside Project) on the Yorke Peninsula in South Australia (SA), has been formally approved by the SA Government.


Approval of the PEPR for ML 6438, EML 6439 and MPL 146, submitted on 18 September 2019, PEPR No. MPEPR2018/008 is in accordance with Section 70B(5) of the Mining Act 1971 (the Act).


Rex’s Managing Director and CEO, Richard Laufmann, said: “Approval of the PEPR is a critical and strategic step in the development of the highly-prospective Hillside Copper-Gold Project.”


In expressing our genuine thanks to the SA Government as well as to the local community, it is appropriate to comment on the extensive and exhaustive engagement within a rigorous process, ensuring that we have achieved a new benchmark in environmental and social stewardship.


Representatives from the “Hillside Mine Community Voice” and the Narungga Nation stand out amongst the vast complex of stakeholders engaged over the many years.


This approval comes at a critical juncture for South Australia, indeed the nation. The COVID-19 pandemic has decimated our economy in ways none of our generations could have experienced. Mining developments like the Hillside Project will be a critical bedrock in the nation’s recovery, providing opportunities for wealth creation in the trifecta of local community jobs and business opportunities, government royalties and taxes, and shareholder returns.


The Hillside Project dovetails neatly into the SA Government’s plans in establishing South Australia as a world-leading copper precinct. Copper is one of the fundamental elements that is crucial to the electrification of everything. As the transition to an electrified world gathers momentum, Hillside is well placed to feed into that exciting and emerging thematic.


As is standard practice, a copy of the PEPR will be published via the SA Government’s Department for Energy and Mining and Rex’s websites in coming days.


Mr Laufmann added: “It would be remiss of me not to acknowledge the exhaustive efforts of so many people – staff, consultants and indeed Rex shareholders – for their persistence, diligence and patience over the period of PEPR compilation, consideration and approval.”


“This is the time for nation building – Go Australia!”


Read the full ASX Release Here

Nevada-more gold than the Pilbara

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7th June 2020 - The Market Herald 


Rex Minerals (ASX:RXM) and heap leaching: the low-cost, high-profit operation disrupting the world of gold
Hog Ranch Gold Project, as it was set up and operated by WMC circa 1989.

California has long held its reputation as the Golden State of America — first due to the gold rush of the mid-1800s and more recently thanks to the Golden State Warriors' basketball success.


However, while California's reputation has stuck fast (a gold rush is, after all, a gold rush), raw U.S. gold production figures suggest the nickname is no longer as accurate as it once was. Rather, the bordering state of Nevada long ago overtook California as the country's leading gold producer — and by quite some distance.


According to data from Visual Capitalist, Nevada produced 5.58 million troy ounces of gold over 2018 compared to California's 0.14 million troy ounces.


Moreover, Nevada produces more gold per million square kilometres than anywhere else in the world, eclipsing prolific countries like Australia, Ghana and South Africa.


Yet, most of the gold coming out of Nevada is produced from low-grade deposits, meaning it's a type of gold that you can’t even see in the rock. While, historically, producers may have turned up their noses at a deposit with less than one gram per tonne (g/t) of gold, it's this type of deposit that has unlocked the riches under Nevadan soil over the past several decades and is poised to help the state retain its leadership position in coming years


Recent low level surface exploration at the Bells Project, Hog Ranch Property

The low-grade revolution

It all comes down to two key factors: the process used to extract gold from mined ore, and the rock characteristics of the region. Ore is defined as the rock (or mineralisation) from which gold can be profitably extracted.


Both Western Australia and Nevada are big gold provinces globally. They are proven, safe jurisdictions, and are well-supported and resourced. However, Australian and Nevadan ore is very different.


In Australia, our conventional gold metallurgical and processing methods, combined with the nature of our ore, mean low-grade deposits are generally sub-economic due to expensive processing required to extract the gold.


The nature of Nevadan geology, on the other hand, means ore is treated very differently. Gold producers in the area are able to take advantage of a process known as heap leaching. Nevada was the “birthplace” of modern gold heap leaching in the late 1960s.

Essentially, the process involves irrigating a pile of crushed gold-bearing ore with a solution designed to "leach" the precious metal from the rest of the material. It is a low-cost and simple process which allows producers to access the gold easily and cheaply.


The process is not a new discovery, either. Heap leaching is outlined in Georgius Agricola's De Re Metallica, which was published in the mid-1500s. For more than 50 years, astute Nevadan miners have adapted this tried-and-tested process and found a way to make it highly profitable. 


Heap leaching needs just 0.3 tonnes of water for one tonne of ore. Essentially, once the ore has been mined, it is generally crushed and heaped together on a lined pad. A solution is then washed through the pile to dissolve the metals and collect in a pond or a tank. From here, the solution can be processed to recover the metals, with the leftover liquid able to be recycled and reused in a new ore heap.


This type of low capital and operational expenditure processing is ideal for low-grade deposits of roughly 0.3 g/t to 0.8 g/t gold. Although, at the current gold price of almost US$1800, even 0.2 g/t deposits can be economically viable. It is like mining a quarry or, as some tongue-in-cheek mining engineers might describe it, “gardening".


Heap leaching processing facilities are relatively quick to construct and, importantly, milling is not required for crushing and agglomeration, meaning heap leaching uses far less power than conventional extraction techniques, which contributes to its very low operating cost.


This makes low-grade deposits incredibly profitable and is the reason mining giants like Barrick, Newmont and Kinross are all hungry for multi-million-ounce deposits of around 0.5 g/t gold in places like Nevada.


What about the ASX?

Interestingly, most major Australian gold companies are yet to pick up on the heap leaching trend and are still more focussed on striking high-grade gold across our country's promising goldfields.


While it's true that based on Australian metallurgical and processing practices a deposit of 0.5 g/t gold would be nothing to write home about, there is money to be made wherever you can find it if the metallurgy stars are aligned, as they are in Nevada.

Junior explorer Rex Minerals (ASX:RXM) noticed the potential of low-grade ore in the States and subsequently snatched up a full interest in the Hog Ranch Gold Property in July 2019


Lying near world-class deposits like Sleeper and Midas in Nevada, Hog Ranch has a recently-updated Mineral Resource Estimate of 97.6 million tonnes of mineralisation with an average grade of 0.45 grams per tonne for 1.4 million ounces of gold. 

Moreover, a recent scoping study of the Bells prospect, which accounts for less than a third of the company’s Hog Ranch gold resource, outlined all-in sustaining costs (AISC) of US$902 per ounce with a 1.9-year payback from the start of development. This makes Bells a first-stage development able to bring in some early cash flow so the company can focus on the much larger Hog Ranch property. 


Hog Ranch displays some striking similarities to SSR Mining's Marigold mine, which has a defined resource of almost five million ounces with similar grades to what's been discovered at Hog Ranch.


This means Rex's new project has the potential to fit the bill of the highly sought-after deposits in Nevada from the world's biggest miners.


What's more, it's not CEO Richard Laufmann's first time taking on heap leaching. In a fortunate meeting of moments, Richard used to work with a former great Australian gold mining company, Western Mining Corporation, where he was the boss of its St Ives gold operations near Kalgoorlie in WA in the late 1990s.


In that role, he led the successful introduction of heap leach extraction which operated profitably to treat low-grade ore through to 10 years ago. St Ives still operates under owner Gold Fields, with heap leach having served its purpose.

By taking advantage of heap leach techniques in the U.S., Rex is now positioning itself in a unique position on the ASX as one of few miners celebrating low-grade gold ore.


For investors, this means it's perhaps time to view gold mining from a different perspective.

Yes, the nature of Australian ore means most low-grade projects are sub-economic. However, understanding heap leach technology and how to take advantage of Nevadan soil is a crucial step to keeping up with the next era of gold mining.


The question, then, remains: how long will Australian investors shy away from offshore low-grade heap-leachable gold deposits before the opportunity to profit from them is snapped up by others? It appears U.S. and Canadian investors are stealing a march on this space.


Read the full article on The Market Herald

REX MINERALS INVESTOR PRESENTATION

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REX MINERALS INVESTOR PRESENTATION

ASX Release 6th June 2020



View the full presentation here: ASX Release 6th June 2020 






NEW LARGE-SCALE GOLD AT HOG RANCH

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New large-scale Gold Trend emerging at Hog Ranch

ASX Release 1st July 2020


Ongoing field work and research by Rex Minerals Ltd (Rex or the Company) at the Hog Ranch Property (Hog Ranch) in Nevada USA, has shown potential for gold mineralisation on a much larger scale than originally anticipated.


Key findings and actions

  • Geological features that are common to the style of gold mineralisation found at Hog Ranch are interpreted to extend over an area that is more than five times the size of the combined historically mined area (0.3Mozs) and current Mineral Resource area (1.4Mozs – see ASX announcement dated 12 May 2020).

  • Rex interprets these features to be related to a series of repeating structures which exist along a broad gold trend which appear to be controlling the gold deposition at Hog Ranch.

  • Within this gold trend, Rex is exploring for two economically significant target types:

    • Shallow, large-scale gold mineralisation amenable to low-cost (open cut) mining and heap leach processing, and
    •  High grade vein hosted gold mineralisation, underneath the shallow gold positions, as evidenced by many high-grade historical drill intercepts including drill hole 95-031 with 6.1m @ 61.8g/t gold (~3m true width) and drill hole 89-042 with 9.1m @ 19.7g/t gold (~3m true width).
  • Rex has followed up this work by more than doubling its land position at Hog Ranch.

  • Rex is now mobilising to commence drilling in Q3 2020 with a focus on both the shallow
  • disseminated gold and the underlying high-grade gold targets.

Rex’s Managing Director, Richard Laufmann, said: “Our outlook and options for Hog Ranch have evolved and grown substantially. It all started with the initial review of a small-scale start-up project at Bells, and now we see a much larger suite of targets following a very large trend.


“Beyond the shallow heap leach gold potential at Hog Ranch, there are quite a number of tasty historical high-grade gold hits that are screaming out to be followed up. If the scale of shallow gold at Hog Ranch is anything to go by, the potential for high-grade vein-hosted gold at depth could deliver equally, if not more exciting, prospects for Rex.”


Evidence for regional gold potential at Hog Ranch

The geological features that are linked to the historical mining area and the current Mineral Resource at Hog Ranch are found to exist over a broad area beyond the current limits of the Mineral Resource. These features support the interpretation that there are multiple epithermal deposit types which could host significant gold mineralisation and which appear to occur along a defined corridor or trend 


The information that has led Rex to this interpretation is the combined presence of geological alteration features such as hydrothermal silica with surrounding clay minerals or alteration features in the surface rocks, overlapping geochemical anomalies and the coincidence of favourably-oriented fault intersection points.


The above features are observed in greatest intensity along a broad corridor or trend which cuts through the dominant volcanic host rocks at Hog Ranch. At this stage, Rex has limited the scope of its regional exploration work to the local host rocks which are part of a large volcanic caldera known as the Cottonwood Creek Volcanic Center (CCVC) 


As part of the gold mineralisation at Hog Ranch, there exists two distinct target types which are common for this type of deposit in Nevada. The target types are vastly different from each other in terms of their location, size, grade and subsequent mining and processing options.


Large-scale, shallow disseminated gold target type

The historical mining area at Hog Ranch and current Mineral Resource along with a larger series of well-supported exploration targets near the surface (less than 200m deep) are all based on flat-lying disseminated gold mineralisation 


Where this gold mineralisation has been weathered, the gold particles within the permeable host rocks are easily recovered using heap leach processing methods (used in historical mining at Hog Ranch) as is common practice throughout Nevada. In addition, the near-to-surface and flat-lying nature of the gold mineralisation at Hog Ranch means that open pit mining with low strip ratios can be employed.


A combination of higher gold prices, larger economies of scale and very low operating costs has enabled Rex to consider the definition and economic evaluation of a much larger volume of gold mineralisation than was possible during the historical mining period when the gold price was averaging circa US$330/oz.


The recently completed Bells Scoping Study has highlighted that even as a small-scale gold operation, the economics of mining shallow disseminated gold mineralisation at Hog Ranch appear very attractive (see ASX announcement dated 9 June 2020).


Read the full ASX Release Here

RXM REVEALS PROMISING SCOPING STUDY

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Read the full article on The Market Herald


  • Junior explorer Rex Minerals (RXM) has released results from a promising scoping study for its Bells Project at the Hog Ranch Gold Property in the U.S.
  • The study highlighted the Bells Project's potential for low operating costs over an 8.5-year life of mine
  • Key metrics from the study include an internal rate of return of 40 per cent and a net present value of roughly A$107 million after-tax at the Bells Project
  • Managing Director Richard Laufmann says the results are "extremely encouraging" and Rex is now gearing up to take Bells to the next phase of development
  • Rex shares are trading over six per cent higher after today's news, currently worth 8.5 cents each

Junior explorer Rex Minerals (RXM) has released results from a promising scoping study for its Bells Project at the Hog Ranch Gold Property in the United States. 


The study comes less than one month after Rex upgraded the mineral resource estimate at the Hog Ranch Property to 97.6 million tonnes of mineralisation, with an average grade of 0.45 grams per tonne of gold for 1.4 million ounces. 

Today's study suggests the Bells Project area of the Nevada-based property is a stand-alone low-cost start-up opportunity for the company. 


The study was based on a 420,000-ounce mineral resource at the Bells Project. Based on the results of the study, Rex is predicting a production rate of 3.5 million tonnes per year over the project's 8.5-year mine life. 


Low costs, smart extraction

Importantly, the project is expected to have a low operating cost of roughly US$10 (around A$14.29) per ore tonne and all-in sustaining costs (ASIC) of US$902 (about A$1288.75) per ounce. 


Assuming a gold price of US$1,550 (approximately A$2214.59) per ounce, this gives Bells an internal rate of return (IRR) of roughly 40 per cent after tax and a net present value (NPV) of US$75 million (roughly A$107 million) with a five per cent discount rate. 

One of the key drivers for the project's low operating costs is Rex's use of "heap leaching" for mineral extraction. 


Simply, this process involves washing out a pile of crushed or with a solution designed to draw out the desired metals. The process quite literally "leaches" the gold from the ore for processing, and the once processed the solution can be reused on a different heap of ore.


The process is gaining popularity across Nevada, which has recently become one of the largest and most productive gold mining districts in the world. 


Future confidence

Despite the news, Rex admitted there is a low level of geological confidence associated with Bell Project's inferred mineral resources, which make up 60 per cent of the life-of-mine production.


However, the company said the scoping study assumes that 70 per cent of production ounces will be from the indicated resources category for the first three years of operation.


As such, Rex Managing Director Richard Laufmann said the scoping study results are "extremely encouraging" and gives the company the confidence to move the Bells Project on to the next phase of development. 


"Gold, Nevada, Heaps Leach — we are continuing to unveil a game-changing opportunity at Hog Ranch for Rex Minerals," Richard said. 

"The Bells deposit represents 30 per cent of our current mineral resource, which offers a separate start-up opportunity to provide early cash flow, allowing us to focus on the much larger Hog Ranch Property," he said. 


Rex shares are trading 6.25 per cent higher following today's news, currently worth 8.5 cents each.


Read the full article on The Market Herald here 

GOLD HEAP LEACH IN NEVADA SCOPING STUDY

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Gold Heap Leach in Nevada - Bells Scoping Study points to growth at Hog Ranch

ASX Release 9th June 2020


Rex Minerals Ltd (“Rex” or “the Company”) is pleased to announce the results of a Scoping Study (“Study”) for the Bells Project at the Hog Ranch Gold Property (“Hog Ranch”), in Nevada, USA.


Study Highlights

The Company announced a major increase in May 2020 to the Mineral Resource estimate at Hog Ranch, to 97.6Mt @ 0.45g/t gold (Au) for 1.4Mozs (see announcement of 12 May 2020).


The Bells Project (Bells) Study has identified a stand-alone low-cost start-up heap leach opportunity in the southern area of Hog Ranch (Figure 1).


The headline metrics and outcomes for Bells are:

  • Based on a Mineral Resource of 420kozs.

  • Production rate of 3Mtpa for an 8.5-year operation.

  • Producing approximately 39kozs of gold per annum from heap leach.

  • Low operating costs of approximately US$10/ore tonne.

  • Pre-production capital costs of US$58 million.

  • All In Sustaining Costs (AISC) of US$902/oz.

  • At US$1,550/oz gold price:

  • o IRR of approx 40% (after-tax).
  • o NPV5% of approx US$75 million (after-tax).
  • Payback of 1.9 years (after-tax) from start of development.

  • The Project is envisaged to be an owner-operator open pit mine with a very low LOM strip ratio of less than 0.5:1.

  • Gold to be recovered by heap leach processing with an estimated LOM recovery of 80%.


Rex’s Managing Director, Richard Laufmann, said: “Bells provides Rex Minerals with a low-cost start-up opportunity at Hog Ranch. The Scoping Study results are extremely encouraging and provide us with the confidence to rapidly progress the Project to the next phase.


“Gold, Nevada, Heap Leach - we are continuing to unveil a game-changing opportunity at Hog Ranch for Rex Minerals. The Bells deposit represents 30% of our current Mineral Resource, which offers a separate start-up opportunity to provide early cashflow, allowing us to focus on the much larger Hog Ranch Property.”


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Figure 1: Location diagram of the Bells Project situated within the larger Hog Ranch Property


Executive Summary

The Scoping Study has demonstrated potentially strong financial metrics for the Bells Project (Table 1) based on a proposed stand-alone open pit mine supplying a conventional crush, screen, agglomerate and heap leach processing operation. The Company considered the Project to be technically low risk given the very low strip ratio and historically high processing recoveries from the previous heap leach operation.


The Scoping Study was completed to an overall +/- 30% accuracy using the key parameters and assumptions set out in Table 1 and as further outlined in Appendix 1. The Material Assumptions that underly the Study are provided in Appendix 2.

The Scoping Study delivered the following production and financial results:

1 Over 8 operating years.
2 AISC and AIC calculated in accordance with 2018 WGC Guidance Note update and IFRS 16, effective 1 January 2019.

3 The mining dilution has resulted in more tonnes at a lower grade with slightly lower overall contained ounces compared to the 


Sensitivity of the Project economics to key parameters including gold price, total capital cost and operating cost was completed to evaluate the relative strength of the Project. The after-tax sensitivity analysis is presented in Table 2, Table 3 and Table 4.


Read the full ASX Release Here

ABOUT REX MINERALS

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ABOUT REX MINERALS

View Rex Minerals Website Here


Rex has the Hillside copper-gold development Project in South Australia and the Hog Ranch gold Property in Nevada, USA


Going the whole hog! Rex Minerals announces promising scoping study for its Bells Project at Hog Ranch, this comes just one month after Rex upgraded the mineral resource estimate at Hog Ranch to 97.6 million tonnes of mineralisation, with an average grade of 0.45 grams per tonne of gold for 1.4 million ounces.


Hillside Project

Rex's Hillside Project is situated 12km south of the township of Ardrossan on the Yorke Peninsula, South Australia. Copper-gold mineralisation was first discovered at the Hillside Project by Rex in 2008 and the Company subsequently raised the funds required to drill out the deposit and ultimately complete a Feasibility Study in 2015. Rex holds an approved Mineral Lease for the Project. 

Hillside 2015 Feasibility Study


Key outcomes of the Hillside 2015 Feasibility Study include:

  • A stand-alone copper-gold project with an initial 13+ year mine life at a processing rate of 6Mtpa.

  • Annual average production over the first 12 years of 129,000 tonnes of copper concentrate containing payable metal of:

    • 35,000 tonnes of copper; and

    • 24,000 ounces of gold.


  • A processing head grade of 0.66% copper and 0.17g/t gold over the first 12 years of production.

  • Pre-production capital investment of A$480 (US$360) million and average operating costs (C1) of US$1.61/lb of copper (includes by-product credits).

  • NPV(8%) of A$188 million (post tax) and an IRR of 14% under the base case assumptions.

  • A construction workforce of close to 500-550.


The simplified and streamlined plan delivers a wide range of operational benefits, including:

  • Smaller start-up footprint;

  • Significant reduction in operating fleet;

  • Simpler process flowsheet and material handling complexity;

  • Lower ramp-up rate plus a more manageable production rate that leads to reduced economic risk; and

  • Significantly higher equipment productivities.



Hog Ranch Property

Rex announced in August 2019 that it had completed the acquisition of the Hog Ranch Gold Property in Nevada, USA. The Rex Board considers that this investment into highly prospective gold mining claims in a mining friendly jurisdiction is an attractive, strategic fit with our flagship asset, the Hillside Copper-Gold Project in South Australia. It immediately diversifies the Company's commodity spread and geographical spread. 


This investment offers Rex shareholders immediate exposure to the gold sector in one of the world's most well-endowed gold regions. 


The Hog Ranch Gold Property provides camp-scale opportunities for small and large low-grade surface gold projects in addition to exciting high-grade underground epithermal gold deposits.


Rex released its Maiden Mineral Resource for the Hog Ranch Gold Property on 2 September 2019. A copy of the Mineral Resource can be found here or on the Investors page, along with copies of all relevant ASX Announcements.


On 29 January 2020, Rex announced a Mineral Resource update for the Bells Project.  A copy of the Mineral Resource update for Bells can be found here


View Rex Minerals Website Here

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