Company News

GOLD EXPLORATION IN THE WORLD CLASS BIRIMIAN GOLD BELT UNDERWAY

GOLD EXPLORATION IN THE WORLD CLASS BIRIMIAN GOLD BELT UNDERWAY

Highlights

  • Volt Guinea geology team formed and commenced an exploration program at the Konsolon Permit. The program will initially include systematic soil sampling, mapping and sampling of artisanal shafts.
  • A 100m by 500m grid soil sampling program is being conducted to cover the NW-SE geochemical anomaly identified by previous explorers.
  • The samples collected from the artisanal shafts and the soil sampling program will be shipped to a nearby laboratory for analysis.
  • The Konsolon program is expected to be completed within 30 days at a relatively modest cost with 1,800 samples collected.
  • To accelerate the exploration program across the Guinea projects, Volt has contracted Sahara Natural Resources (Sahara) to conduct exploration on its other five permits (Kouroussa, Kourossa West, Fadougou, Nzima and Monebo).
  • Sahara has extensive experience in conducting exploration and drilling within the Siguiri Basin including a current drilling program for Predictive Discovery’s (ASX:PDI) at its new gold discovery.

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has commenced exploration programs at its Guinea gold projects located in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt. Early exploration activities include systematic soil sampling combined with mapping and sampling of artisanal mining pits and shafts.

The initial Konsolon program is estimated to be completed within 30 days. The follow-up programs will involve detailed mapping of generated soil geochemical targets and shallow auger drilling and sampling to analyse soil geochemistry.

Volt has contracted Sahara Natural Resources (“Sahara”), a mineral exploration consultancy and drilling company, to conduct exploration in its Kouroussa and Mandiana Projects. Sahara has staff on the ground and broad experience in the region and has recently been involved with PDI’s new greenfields gold discovery. The initial stages of the Sahara exploration program is scheduled to be completed in 17 weeks.

The Konsolon Project exploration program is being undertaken by Volt’s newly formed Guinea team comprising three geologists led by one expatriate senior geologist. Volt’s geology team has already mobilized to site to commence the Konsolon Project exploration program and Sahara will soon mobilize to commence the Kouroussa and Mandiana Projects exploration program.

Volt has commenced the early works on the Guinea projects to fast track the drill target generation phase on these highly prospective tenements. The shareholder meeting to approve the issue of the Completion Shares and complete the Guinea gold projects acquisition is scheduled for late June 2020 (see ASX announcement dated 14 May 2020 “Volt Acquires Highly Prospective Gold Project and Finalises Capital Raising”).

Guinea Projects and Permits

Volt has six permits and has formed them into three projects – the Kouroussa Project, Mandiana Project and Konsolon Project. See Figure 1 below for the project and permit locations.

The Kouroussa Project is formed by three permits, the Kouroussa, Kouroussa West and Fadougou permits. The Kouroussa and Kouroussa West permits border PDI’s Kaninko Project which was the subject of a recently announced discovery of high-grade gold mineralization which included a drilling intersection of 46m@6.58g/t Au and is described as open in all directions.

The Konsolon Project constitutes one large permit named Konsolon. The permit has a NW-SE trending soil geochemical anomaly identified by previous explorers.

The Mandiana Project is formed by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Figure 1. The Permits located in the Siguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.
Figure 2. Map showing the location of all projects and permits in relation to regional geology, gold occurrences and major mines.

Konsolon Project

The project is located in a highly prospective gold region with several gold occurrences and artisanal mining activities. Sampling conducted by previous explorers identified a NW-SE trending gold in soil geochemical anomaly within the permit area. The geology of the area includes metasedimentary rocks of Lower Proterozoic Birimian Group and the Lower Cambrian deposits.

Figure 3 below identifies the Konsolon permit in relation to local gold occurrences and the Lero mine.

Figure 3. Gold occurrences including the Lero Mine near the Konsolon Project overlaid on a contour map of the region

Exploration Plan
The planned works in the project area include the review and understanding of the geography and geology, systematic soil geochemical sampling, geological and structure mapping, mapping of artisanal shafts and pits, potentially followed by trenching, ground magnetic surveys, shallow auger drilling followed by Aircore drilling.

Soil and Artisanal Works Sampling
The team has started a soil sampling program in an area that was identified as a NW-SE trending geochemical anomaly by previous explorers. The soil samples have been planned at a grid of 100m by 500m to cover all the anomalous area. The program will comprise 1,800 soil samples plus additional samples from sampling of artisanal mining shafts. All the samples will be dispatched to the SGS Mali laboratory for analysis.

Figure 4. Konsolon soil sampling grid overlaid on the historical gold in soil anomaly results.

Kouroussa and Mandiana Projects

The Kouroussa Project comprises three permits, two of which border PDI’s Kaninko Project which was the location of the recent spectacular greenfield gold discovery. The Mandiana Project includes the Nzima permit area which surrounds the Nzima gold deposit which is operated by small scale miners.

Exploration Plan
Volt has engaged Sahara to conduct exploration of the Kouroussa and Mandiana Projects. Sahara is a specialist West African focussed firm that provides a range of services to exploration and mining companies.

Sahara will be using a similar exploration methodology for both the Kouroussa and Mandiana Projects to that employed at PDI’s recent successful drilling program. The plan includes desktop review of available existing geological and exploration data, site visit and area reconnaissance, geological mapping and sampling, auger geochemical drilling and sampling followed by Aircore/Reverse Circulation/Diamond Core drilling.

A team of Sahara geologists are currently undertaking desktop studies in preparation to mobilize to site for the next stage of the program. Several East–West and NW-SE trending structures have already been identified. The structures are associated with gold mineralization and are crosscutting the Kouroussa and Kouroussa West permits. The two areas of PDI’s discoveries lie within these structures suggesting possible mineralization extension to our permits.

An initial site visit to the Kouroussa permit identified several clusters of artisanal mining shafts and pits. The two photos below are of some of the existing artisanal workings in the Kouroussa permit and Figure 5 below is a map showing the location of identified artisanal workings in the permit area in relation to the Kouroussa mine and the PDI gold discovery.

Artisanal workings in the Kouroussa Permit
Figure 5. Identified Artisanal workings in the Kouroussa Project

Project Schedule

The table below is the schedule for the completion for the first phase of exploration by Sahara.

ActivityCompletion Schedule
Stage 1: Regional Desktop Study: Data review and reporting for 5 permits2 Weeks
Stage 2: Initial Project Site Visits and Sampling: Site visits and reporting5 Weeks
Stage 3: Initial Auger Geochemistry Over Priority Targets10 Weeks
Stage 4: Dependent On Outcome Stage 3
Total Schedule for Proposed SOW17 Weeks

Sahara has assembled an experienced team of professionals to undertake Volt’s planned project exploration activities. All of the professionals proposed have significant relevant experience and include personnel who are qualified to act as the competent person under the JORC 2012 code. The Sahara team has worked with Volt’s senior geologist in Guinea on Lindian Resources Ltd’s (ASX:LIN) recent successful bauxite exploration program in Guinea.

Volt Resources Chairman, Asimwe Kabunga, commented:

“After a recent successful exploration campaign at Lindian which led to the discovery of a world class high-grade conglomerate bauxite deposit in Guinea, we’re pleased for the newly formed Volt team to again be working with the Sahara team on this exciting gold project.

“Against the backdrop of Sahara’s role in the recent spectacular success of Predictive Discovery’s drilling program, including a gold intersection of 46m@6.58g/t, combined with evidence of gold mineralisation trending through our adjacent Kouroussa permits, Volt is excited to get the exploration activities underway and looks forward to providing the results of the exploration programs in due course.”

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
BINDING TERM SHEET TO ACQUIRE ADVANCED GOLD PROJECT

BINDING TERM SHEET TO ACQUIRE ADVANCED GOLD PROJECT

Highlights include:

  • Binding Term Sheet signed for the conditional acquisition of an 85% interest in the advanced Luiri Hills Gold Project in Zambia.
  • The Luiri Hills Gold Project is an advanced project with Metallurgical and Mineral Resource studies and significant other work undertaken by credible international consultants with over US$20 million expended on the project to date
  • Minimal work expected to be required to update existing studies and to progress with required development approvals to a ‘Decision to Mine’
  • Opportunity to build on Volt’s long-standing relationship with Chinese Engineering and Construction group, Yantai Xinhai, who previously proposed a funded BOOT gold plant development plan for the Project development
  • Potential to realise funds from stockpiled gold bearing ore
  • Acquisition remains subject to completion of due diligence

Volt Resources Limited (ASX: VRC) (“Volt” or the “Company”) is pleased to advise that it has entered into a binding Term Sheet (“Term Sheet”) to conditionally acquire an 85% interest the Luiri Hill Gold Project (“Luiri Project”) located in south-central Zambia, 120km west-northwest of the Zambian capital of Lusaka.

The proposed acquisition of the Luiri Project continues Volt’s progression in establishing a new gold business whilst progressing the development of its Bunyu Graphite Project in Tanzania.

Together with the proposed acquisition of the Guinea gold project announced on 14 May 2020 (the “Guinea Gold Project”), the acquisition of the Luiri Project will provide Volt with a combination of highly prospective grass roots exploration in Guinea together with an 85% interest in an advanced gold project in Zambia that has near term development potential.

The creation of a new gold business provides Volt shareholders with the opportunity to participate in the potential value accretion from gold exploration and development activities, particularly through leveraging the Company’s existing extensive networks in Africa.

Volt Resources Chairman, Asimwe Kabunga, commented:

“As a shareholder I am excited about the opportunity for Volt to develop its world class graphite business in Tanzania combined with the potential to become a gold producer in Zambia in the near future.

“The board is working with the management team to realise our goal to transform Volt into a diversified mineral producer.

“Our Zambian partners in the Luiri Hill Gold Project have the local knowledge and important relationships which can be utilised to add considerable value if the acquisition proceeds.”

Volt Resources Managing Director, Trevor Matthews, added:

“ The Luiri Hill Gold Project is at an advanced stage supported by a number of studies.

“The opportunity to realise some cashflow from the sale of the existing on-site stockpiles to provide early funding is unique.

“Given the substantial increase in the gold price in the past year combined with the project’s potential supports the ability to debt fund the project development to minimise future equity requirements and can create real long-term value for shareholders.”

The Luiri Hill Gold Project

The Luiri Project is an advanced gold project with considerable drilling and studies already undertaken. The Matala and Dunrobin deposits, which collectively form the Luiri Project, have the potential to be developed into a medium scale gold mine in the short term.

The Luiri Project was previously majority owned by Luiri Gold Limited, a company that was previously listed on ASX (ASX code “LGM”) until 2014, when it was sold by Luiri Gold Limited to a South African company.

The Project is comprised of one large-scale exploration licence and a mineral processing licence with a total area of 31.38km2 within the Matala Dome mineralized structure. Access to the Project area is by a bitumen sealed road from Lusaka.

The area has significant potential for gold occurrences both related to the Matala Dome mineralized structure and the surrounding Katangan rocks where there is potential for iron oxide copper-gold (“IOCG”) style mineralization.

Luiri Hill Gold Project location

Significant Work Undertaken to Date

Over US$20 million has been invested in the Luiri Hill Gold Project to date with extensive RC and diamond drilling programmes, mineral resource reports, metallurgical testwork programmes and studies, feasibility studies undertaken by consultants Coffey (2013) and PenMin (2016) and various other activities.

In 2016 Yantai Xinhai Machinery, a Chinese based firm, entered a partnership agreement with the previous owner to arrange vendor financing through a loan for the design, build operate (DBO) contract for the Matala deposit.

Yantai Xinhai Machinery has a longstanding relationship with Volt Resources Limited as the preferred processing plant constructor for the Bunyu Stage 1 Graphite Project. Due to previous experience and work done by Yantai Xinhai Machinery on the Matala project, Volt has commenced engagement with Yantai Xinhai Machinery to explore the role they can play in development of the Luiri Hill Gold Project.

Whilst Coffey Partners Pty Ltd previously reported a JORC (2004) Mineral Resources (Measured, Indicated and Inferred) in relation to the Matala and Dunrobin deposits, the Company is seeking access to further information regarding the extent of the historical work conducted in order to comply with ASX continuous disclosure requirements regarding the reported estimates of Mineral Resources given that they were prepared under a pre-2012 edition of the JORC Code, and will release that information when it becomes available.

In any event, with most of the mineral resource near surface and therefore suitable for open cut mining, Volt considers there is an opportunity with the current and forecast gold price to reduce the cut-off grade and increase the ounces available for extraction from what has previously been used for the purposes of estimating that mineral resource.

In addition to the Dunrobin and Matala project area, a further twenty-four gold prospects have been identified within the area of license as being targets for further exploration work.

Dunrobin mineralised core
Luiri Hill Gold Project licence area in relation to gold and gold/copper occurrences

Stockpiles

The project also reportedly has significant existing stockpiles of gold bearing ore, which Volt considers may be material in terms of providing a funding mechanism for the completion/updating of studies to progress to a mining licence, advance any remaining environmental and other approvals and transition to a development decision.

As with the existing Mineral Resource estimates, the Company is seeking access to site to physically inspect these stockpiles as part of its due diligence investigations and will provide further information when it becomes available.

Volumetric calculations being undertaken at one of the stockpiles

Zambian Vendor Continuing Role to Assist the Project Development

The project vendors are to retain a 15% interest in the project ownership and have committed to assist Volt with government and local community engagement using their deep relationship with the local communities including the community leadership, as well as their invaluable connection
within the Zambian Government to ensure the partnership is able to successfully develop the Luiri Hill Gold Project.

Transaction Details

The Company has entered into a binding term sheet to acquire an 85% interest in the Project.

The project licences are held by two entities incorporated in Zambia. Cupriferous Resources Ltd holds a Large Scale Exploration Licence and with Bukimo Mining Limited, the two companies jointly hold a Mineral Processing Licence. It is proposed both entities will be acquired by an Australian parent entity which is to be incorporated by Volt prior to settlement, which in turn will be owned 85% by Volt and 15% by the project vendors.

The consideration for the acquisition of at 85% interest in the Luiri Project comprises:

  • the issue of A$3.75 million ordinary fully paid shares on settlement of the acquisition, with the number of shares to be issued calculated based on the 5 trading day volume weighted average price of Volt securities on ASX in the period immediately prior to settlement; and
  • payment of A$250,000 in cash within 30 days of settlement occurring.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries, the execution of a share sale agreement in a form acceptable to Volt, as well as the approval of Volt shareholders to the issue of the consideration shares to be sought at an upcoming meeting of Volt shareholders expected to be held in late June 2020.

There are no change to Volt’s board or management structure arising out of the proposed acquisition, although the project vendors will be entitled to representation on the Board of the Australian holding company, as well as the relevant Zambian subsidiary entities, as a consequence of their ongoing 15% interest in the Luiri Project.

Settlement of any acquisition is expected to occur within 5 business days of shareholder approval to the issue of the proposed consideration shares for the acquisition of an 85% interest in the Luiri Project being obtained.

The Company will update shareholders of any material developments as it progresses with its due diligence enquiries in relation to the Luiri Project.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
VOLT ACQUIRES HIGHLY PROSPECTIVE GOLD PROJECT AND FINALISES CAPITAL RAISING

VOLT ACQUIRES HIGHLY PROSPECTIVE GOLD PROJECT AND FINALISES CAPITAL RAISING

Highlights include:

  • Volt has acquired gold projects comprising six (6) permits in the highly prospective Birimian Greenstone in Guinea.
  • Permits cover an area of 388km2
  • Kouroussa and Kouroussa West Permits border the recently discovered gold mineralization announced by Predictive Discovery (PDI:ASX) with up to 46m@6.58g/t
  • Konsolon Permit with an 8 km soil anomaly with gold bearing grab samples
  • Artisanal mining locations on the Kouroussa permit on a north-east line from the PDI discovery and the Kouroussa mine
  • Capital raising finalised to raise $800,000
  • Transitions Volt to a diversified mineral resources company with a continuing commitment to developing the Bunyu Graphite Project combined with gold exploration and development

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has entered into a Share Sale Deed (“Deed”) to acquire an exciting gold project located in Guinea, Africa.

The project comprises six permits (“Permits”) in the prolific Siguiri Basin with a total area of 388km2.

The Company is also finalising a capital raising of $800,000 before costs through a share placement to sophisticated investors.

Guinea Gold Project Acquisition

The Permits are located in the Suguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Permit locations in relation to significant mines in the Birimian Gold Belt

Key information regarding the Permits acquired and identified in more detail in the map below includes:

  • The Kouroussa and Kouroussa West permits are located immediately adjacent to Predictive Discovery Limited’s (ASX:PDI) Kaninko Project which was the subject of significant exploration results announced to the ASX on 15 April 2020. Artisanal miners are active on the Kouroussa permit which indicates the presence of high-grade gold (see image below). Combined with the Fadougou permit this provides Volt with a strategic land holding in this highly prospective area.
  • At the Konsolon permit a coherent 8 km gold in soil anomaly has been identified along with gold bearing grab samples
  • The Nzimi permit is 16km south east of the Tri K deposit in an area of high gold prospectivity. The geology in the permit is analogous to nearby resources and mines.
  • The Monebo permit is within a highly prospective region with nearby gold occurrences.

The map below shows the 8km strike soil geochemistry anomaly identified in the Konsolon permit.

The map above identifies artisanal mining locations on the Kouroussa permit on a north-east line from the PDI discovery and the Kouroussa mine.

The below image shows artisanal mining undertaken on the Kouroussa permit.

Planning for exploration works on these under-explored permits is already underway and further information will be provided in coming weeks.

Volt will continue to progress its graphite business plans and the current Stage 1 development funding program in relation to its Bunyu Graphite Project in Tanzania. The addition of a gold focus will provide current and new shareholders with the opportunity to participate in the potential value accretion from gold exploration and development, particularly through leveraging off its existing networks in Africa.

The Volt board considers the transaction will provide an additional value driver for the company, diversify project specific risks, improve the ability to raise capital at better prices and may potentially assist with the graphite development funding process.

Transaction Details

In accordance with the Share Sale Deed, the Company has agreed to acquire all of the issued shares in Gold Republic Pty Ltd (Gold Republic), an Australian proprietary company controlled by Volt Chairman, Mr Asimwe Kabunga.

Gold Republic is the legal and beneficial holder of all of the issued share capital in each of Norsk Gold Pte. Ltd, (a registered Singapore entity which in turn is the legal and beneficial holder of all of the issued share capital in Novo Mines Sarlu) and KB Gold Sarlu. Novo Mines and KB Gold hold 100% of the legal and beneficial interests in the Permits.

The consideration for the acquisition comprises:

  • The issue of 121,718,576 Volt ordinary fully paid shares on completion of the acquisition; and
  • A 2% Net Smelter Royalty covering the Permit area as well as a 10 km radius from the permit boundaries.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries as well as the approval of Volt shareholders to the issue of the Completion Shares which is to be sought at an extraordinary general meeting expected to be held in late June 2020.

Volt Managing Director, Trevor Matthews, commented;

“This is an exciting opportunity for Volt to acquire a gold project with permits in a highly prospective and under-explored area. With Alphier Capital, I am continuing to advance the graphite funding process and this remains a key focus for the Company.

“The addition of a new gold focus provides shareholders with exposure to one of the best performing metals on financial markets and the benefits of diversification in a period of economic uncertainty.”

Capital Raising

The Company has successfully raised $800,000 (before costs) to assist with funding the initial exploration programs on the Guinea gold project and to provide working capital for Volt’s Tanzanian graphite project and meet corporate costs.

The capital raising will be completed through the placement of 160,000,000 new fully paid ordinary shares at A$0.005 per share (Placement) plus 80,000,000 unlisted options with an exercise price of A$0.01 and a maturity date 24 months from the date of issue (with each investor to receive one option for every two shares subscribed for under the Placement).

The Placement securities will be issued within the next two days and are being issued pursuant to Volt’s 15% capacity under ASX Listing Rule 7.1.

Authorised by :
Trevor Matthews
Managing Director


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788


Posted by Volt Resources in Company News
BOARD CHANGES AND EXPENDITURE REDUCTION MEASURES

BOARD CHANGES AND EXPENDITURE REDUCTION MEASURES

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following information in relation to the board and management’s focus on development funding and expenditure reduction initiatives.

With the Company having completed all of the activities to move the Bunyu Graphite Project to its development ready status, Volt is focused on securing the funding for the Stage 1 development. The current funding focus and the board changes described below have provided the opportunity to reduce expenditure to conserve cash while still working to create shareholder value through securing the Stage 1 funding.

Board and Management

The Board of Volt Resources has been restructured with the resignation of Non-executive Director Stephen Hunt. Current Chief Executive Officer, Trevor Matthews, has been appointed as Managing Director commencing 1 May 2020.

Chairman, Asimwe Kabunga, commented “Stephen has been a significant contributor to Volt’s success in his earlier role as Executive Chairman and later as a Non-executive Director. His marketing experience and commitment to the Bunyu graphite project were instrumental in the company now advancing with its project development funding process. On behalf of the Volt board we wish Stephen success with his future endeavours.”

“The board is pleased that Trevor has accepted the Managing Director role and we look forward to the continuation of our development funding efforts.

The Company structure will continue to be reviewed taking into account our development funding status and the broader macro-economic factors as a result of the global pandemic.”

Combined with the board changes, director fees will be reduced effective 1 May 2020 with the Chairman fee reduced to $3,000 per month and the Non-executive Director fee reduced to $2,000 per month. The Managing Director will be engaged under a consultancy agreement and will be paid a fixed monthly fee of $3,000 per month with incremental services charged at an hourly rate of $200 per hour.

A summary of the Managing Director’s material terms under the consultancy agreement is included below.

Expenditure Reduction

Over the past 12 months Volt has implemented a number of changes to reduce its cost structure including:

  • Moving from a commercial office lease to a serviced office combined with remote working capability including the use of video conferencing since April 2019.
  • The retrenchment of most Perth staff with services outsourced and a reduction in Tanzanian personnel during January and early February 2020.
  • Reduced use of consultants for various corporate and administration activities.

Managing Director Consultancy Agreement Material Terms

Commencement Date1 May 2020
Monthly retainer fee
Hourly rate
$3,000
$200
TerminationOne month’s notice by either party
without cause.
Immediate termination by Company
for cause.
Performance RightsTo be agreed with the Volt Board and
as approved by shareholders

This announcement was authorised for release by the Board of Volt Resources Ltd.


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2020

QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2020

Highlights:

  • The Mauritian Funding Process Commenced
  • Excellent Initial Testwork Results Highlight Significant Potential to Improve Bunyu Graphite Economics
  • Rights Issue Funding Completed

Tanzanian-focused flake graphite development company Volt Resources Limited (ASX: VRC) (“Volt” or, the “Company”) is pleased to report on the Company’s activities for the quarter ended 31 March 2020.

March Quarter Activities Overview

Bunyu Stage 1 Development Funding Update

Volt’s 100%-owned subsidiary, Volt Graphite Tanzania Plc (VGT), is progressing with the raising of US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise up to US$30,000,000 by way of private placing on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius (SEM).

The Company and its advisor, Alphier Capital (formerly Exotix Capital) along with local brokers, commenced investor meetings from 27 January 2020 as part of a roadshow to market the Notes to sophisticated investors.

The Mauritian Note offer has been extended and is planned to close 30 June 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is scheduled for Monday, 6 July 2020.

Due to the recent and widespread impact of the COVID-19 pandemic on financial markets and the associated delays as institutions and investment groups change their work arrangements leading to delays in conducting due diligence and the deferral of investment decisions, the Company is providing potential investors with additional time to complete these processes.

A number of alternative funding proposals were presented to the Company as result of the engagement with numerous investment groups as part of the Note offer marketing process and these are currently being progressed in parallel with the Note Offer process.

The purpose of progressing with the Mauritian Note offer and alternative funding proposals is to enable the Company to:

(a) commence the development of the Stage 1 Bunyu Graphite Project in Southern Tanzania including the construction of a 400,000tpa concentration plant and associated infrastructure; and

(b) fund the resettlement costs of people currently farming and/or living within the project development area.

Excellent Testwork Results

During the March quarter the Company commenced the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Co. (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020, Volt commissioned AETC to undertake a testwork program using a representative sample from drilling completed as part of the Stage 1 Feasibility Study at the Company’s Bunyu Graphite Project.

A graphite product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing properties to provide information for its suitability for several value-added graphite market applications including as anode feedstock for Li-ion battery cells.

The representative sample of ore was obtained from a composite sample produced from a metallurgical drilling program undertaken as part of the Stage 1 Feasibility Study (FS).

For further information regarding the drilling program and composite sample refer to the ASX announcement Excellent Bunyu Testwork Results – Additional Information dated 20 April 2020.

In the testwork conducted, concentrate grade recovery and flake preservation had an emphasis on the use of a heavy molecular oil method (AETC’s frother is referred to as AMO). This method offers an alternative to the industry standard reagent, kerosene.

The success of this method is based on a synergistic use of high shear mixing and AMO. By the end of the primary beneficiation process, aa 86.6 wt. % TGC concentrate was produced with recovery of at least 68.5 wt. % of graphite available for beneficiation.

This is an effective method to produce flake graphite concentration for the purpose of subsequent down-stream processing and characterisation for a range of applications.

Producers that use the industry standard method, which includes kerosene as an additive and utilizes large paddles as an agitator of material, typically require at least a few more polishing grinds, the application of an attrition mill, and a greater number of cleaner circuits to achieve a similar result, and this would be more complex in a laboratory application where the focus was to produce flake graphite cost effectively for subsequent downstream processing testwork.

The testwork undertaken included both physical and chemical characterisation, and Industry standard analytical techniques have been employed.

The recovery of 68.5 wt.% of the total available concentrate was deemed appropriate by the consulting laboratory, extracting what they believe was a fully representative sample of flake graphite product sample for thermal purification by the induction furnace into the secondary processed grade.

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the aforementioned testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. With further testwork and analysis, this could have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

AETC testwork on Bunyu Graphite

If through further testwork the benefits in flake size distribution continue, the next step would be to consider the incorporation into the Stage 1 feasibility study and flowsheet design. The operating and capital
cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further results as they become available.

The testwork program constituted the main mining exploration activity undertaken by the Company during the March quarter. Total expenditure on exploration activities for the quarter was $384k.

There was no mining production and development activities undertaken in the March quarter.

Non-Renounceable Rights Issue Funding Completed

The Company successfully raised the target amount of $1.251 million following the underwriting and placement of all shortfall shares from the Rights Issue (see ASX Announcement dated 17 December 2019).

The Company received a further $638,055 from the issue of 63,805,449 shares following the underwriting and placement of the shortfall shares in January 2020.

Funds raised were used to progress the DEM listed Note issue, discussions with other development funding sources and for general corporate and working capital.

Mining Tenements

The schedule of interest in mining tenements as at 31 March 2020 follows.
All tenement within Tanzania are held by Volt Graphite Tanzania Plc, a wholly owned subsidiary of Volt Resources Ltd.

The Company did not acquire or dispose of any tenements during the quarter. The Company is not a party to any farm-in or farm-out agreements.

Cash Position and Mid-Term Funding

The Company finished the 31 March 2020 quarter with $27k in cash and $46k in receivables.

While the Company progresses its fund raising activities for the Stage 1 development, it is currently advancing with proposals to raise a smaller amount of funds for corporate and working capital purposes.

Early in the March quarter the Company reduced its Perth staff to the CEO role with most activities being outsourced and a number of other corporate services ceased to further reduce expenditure. Reductions in Tanzania personnel were also undertaken during the quarter.

Related Party Payments

During the quarter $5,000 was paid in respect of Non-Executive Directors fees.

Management Commentary

Volt Resources CEO Trevor Matthews said:

“The focus in the March quarter moved to the formal start of the Company’s development funding initiatives with the Mauritian Note offer commencing combined with a marketing roadshow. This in turn led a number of introductions to alternative funding providers with which discussions continue.

“Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 pandemic which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

This announcement was authorised for release by the Board of Volt Resources Ltd.


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
UPDATE ON MAURITIAN NOTE OFFER PROCESS

UPDATE ON MAURITIAN NOTE OFFER PROCESS

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that the closing date of the Company’s Mauritian Note Offer (“Note Offer”) has been extended.

The Note Offer opened on January 27 and is now planned to close by 30 June 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 6 July 2020.

As previously advised (see ASX release dated 28 January 2020), Volt’s wholly owned subsidiary Volt Graphite Tanzania Plc (“VGT”), is aiming to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise a total of US$30,000,000 by way of private placing on the Development and Enterprise Market (“DEM”) of the Stock Exchange of Mauritius (“SEM”).

Due to the recent and widespread impact of the COVID-19 pandemic on financial markets and the associated delays as institutions and investment groups change their work arrangements leading to delays in conducting due diligence and the deferral of investment decisions, the Company is providing potential investors with additional time to complete these processes.

A number of alternative funding proposals were also presented to the Company as result of the engagement with numerous investment groups as part of the Note offer marketing process and these are currently being progressed in parallel with the Note Offer process.

Authorised by:

Trevor Matthews
Chief Executive Officer


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
EXCELLENT BUNYU TESTWORK RESULTS – ADDITIONAL INFORMATION

EXCELLENT BUNYU TESTWORK RESULTS – ADDITIONAL INFORMATION

Key points include:

  • Scope to significantly improve sales revenue from Bunyu graphite products – initial testwork shows significant increase in the percentage of high priced (+30# and +50#) graphite flake and a reduction mainly in the lower priced fine graphite flake.
  • Other key results from the first phase of the testwork program include:
    • Production of a 99.95% thermally purified graphite product suitable for a number of end uses including battery anode material feedstock.
    • ICP analysis which identified very low boron levels in the thermally purified graphite which makes the Bunyu product suitable for nuclear industry components and as a feedstock in the manufacture of synthetic diamonds.
    • Excellent preliminary BET surface area, Scott volume and tap density measurements which point to the Bunyu graphite product being a good quality feedstock for Li-ion battery cell anode material.
  • Volt continues to advance its Mauritian Note Offer to raise up to US$30M and alternative finance sources to fund Stage 1 development of Bunyu Graphite Project.

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide the excellent results from the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Co. (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020, Volt commissioned AETC to undertake a testwork program using a representative sample from drilling completed as part of the Stage 1 Feasibility Study 1 at the Company’s Bunyu Graphite Project. A graphite product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing properties to provide information for its suitability for several value-added graphite market applications including as anode feedstock for Li-ion battery cells.

The representative sample of ore was obtained from a composite sample produced from a metallurgical drilling program undertaken as part of the Stage 1 Feasibility Study (FS). Further information regarding the drilling program and composite sample are included below.

Volt’s Bunyu Graphite Stage 1 Project will produce on average 23,700tpa of natural flake graphite product at up to 96% TGC. Product size, grade distribution and average sales price reported in the Stage 1 Feasibility Study are shown in the following table.

Comminution Testwork

The samples supplied were screened to -3.35mm and this was confirmed with a light top -size crush at the US Laboratory prior to grinding. Wet grinding was undertaken in a ball mill in 4.5lbs batches for 5 minutes at 70% solids. Polishing mill utilised 0.5” diameter alumina balls at 20 minutes for 50 wt. % solids as the operating conditions.

Flotation Testwork

A Westpro Machinery Inc. (Vernon, BC, Canada) continuous mineral beneficiation system by froth flotation was employed to separate graphite from the bulk of the host rock. The model FL3, having a 3 ft3 capacity per cell, constructed in a four-cell arrangement was used. The flotation cell has a range of operating controls and common operating parameters to other testwork programs. Also, a smaller 3 Litre cell was used for preliminary testing of froth formation (shown below)

Froth Flotation Cell Testwork

Graphite Froth Flotation Cell Testwork

In the testwork conducted, concentrate grade recovery and flake preservation had an emphasis on the use of a heavy molecular oil method (AETC’s frother is referred to as AMO). This method offers an alternative to the industry standard reagent, kerosene. The success of this method is based on a synergistic use of high shear mixing and AMO.

By the end of the primary beneficiation process, aa 86.6 wt. % TGC concentrate was produced with recovery of at least 68.5 wt. % of graphite available for beneficiation. This is an effective method to produce flake graphite concentration for the purpose of subsequent down-stream processing and characterisation for a range of applications.

Producers that use the industry standard method, which includes kerosene as an additive and utilizes large paddles as an agitator of material, typically require at least a few more polishing grinds, the application of an attrition mill, and a greater number of cleaner circuits to achieve a similar result, and this would be more complex in a laboratory application where the focus was to produce flake graphite cost effectively for subsequent downstream processing testwork.

The testwork undertaken included both physical and chemical characterisation, and Industry standard analytical techniques have been employed.

Process flowsheet of upstream beneficiation of Bunyu flake

The recovery of 68.5 wt.% of the total available concentrate was deemed appropriate by the consulting laboratory, extracting what they believe was as a fully representative sample of flake graphite product sample for thermal purification by the induction furnace into the secondary processed grade.

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the aforementioned testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. With further testwork and analysis, this could have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

AETC Testwork results

If through further testwork the benefits in flake size distribution continue, the next step would be to consider the incorporation into the Stage 1 feasibility study and flowsheet design. The operating and capital cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further results as they become available.

Electron microscope image of +30# graphite flake

Scanning electron microscope image of +30# graphite flake from Bunyu screened product

FS Metallurgical Drilling Program

As part of the 2017/18 Stage 1 FS program of work, an infill drilling program was undertaken at Bunyu 1 to increase the geological understanding of the ore body and the level of resource confidence and, using this additional information, to refine the planned mining schedule and the Stage 1 pits.

As part of this scope of work diamond drill holes were drilled in areas of known mineralisation to map out additional geological, geotechnical and metallurgical information.

Bunyu drill locations map

The diamond drill hole collar details and hole depths that contributed to the metallurgical composite sample are detailed in the following table.

Bunyu metallurgical drill hole collar details

2018 FS Drill Core Composite Details

Cut ½ and ¼ drill core samples were delivered to ALS Metallurgy, at their Balcatta facility during January 2018. The drill core was crushed to -3.35mm and the following composites were formed, which were homogenised and the head assays determined.

Bunyu Composite details

From the Master Composite a 67kg of sample was made available for this program of testwork and dispatched from ALS Metallurgy in December 2019.

Management commentary

Volt’s Chief Executive Officer, Trevor Matthews, commented;

“We are delighted with these initial testwork results provided by AETC which is further confirmation to the previous testwork programs during the PFS and FS stages of project study & development that Bunyu’s flake distribution is suitable for supply to traditional markets and for use in new high demand applications such as battery anode end use markets.

“Given these results there is an opportunity to make improvements to the project economics outlined in the Stage 1 Feasibility Study for Bunyu, with further details on these changes to be provided in due course.

Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 pandemic which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

Authorised by:

Trevor Matthews
Chief Executive Officer


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
EXCELLENT BUNYU TESTWORK RESULTS

EXCELLENT BUNYU TESTWORK RESULTS

Key points include:

  • Scope to significantly improve sales revenue from Bunyu graphite products – initial testwork shows significant increase in the percentage of high priced (+30# and +50#) graphite flake and reduction mainly in the lower priced fine graphite flake
  • Other key results from the first phase of the testwork program include:
    • Production of a 99.95% thermally purified graphite product suitable for a number of end uses including battery anode material feedstock
    • ICP analysis which identified very low Boron levels in the thermally purified graphite which makes the Bunyu product suitable for nuclear industry components and as a feedstock in the manufacture of synthetic diamonds
    • Excellent preliminary BET, Scott volume and tap density measures which point to the Bunyu graphite product being a good quality feedstock for Li-ion battery cell anode material
  • Volt continues to advance its Mauritian Note Offer to raise up to US$30M and alternative finance sources to fund Stage 1 development of Bunyu Graphite Project

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased provide the excellent results from the first stage of a testwork program on graphite ore from the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical group, American Energy Technologies Company (“AETC”) which is headquartered and operates research and laboratory facilities in Chicago, Illinois.

AETC testwork program summary

In January 2020 Volt commissioned AETC to undertake a testwork program using a representative sample of ore from drilling completed as part of the Stage 1 Feasibility Study at the Company’s Bunyu Graphite Project. The scope was to prepare a graphite product from the Bunyu ore sample and to analyse the product for certain physical, chemical and processing properties to provide information for its suitability for several graphite markets including as anode feedstock for Li-ion cells.

Volt’s Bunyu Graphite Stage 1 Project will produce on average 23,700tpa of natural flake graphite product at up to 96% TGC. Product size, grade distribution and average sales price reported in the Stage 1 Feasibility Study is shown in the following table.

Size (µm)Size (#)% Distribution% TGCPrice US$/tonnne
+500+321952,530
+300+5011931,990
+180+8027921,077
+150+1001592985
-150-1004696704
Total1001,195*

*Weighted average price based on all product sizes

Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC graphite product from the testwork program.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower priced fine graphite flake. This will have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

Size (µm) Size (#)% Distribution
Stage 1 FS
% Distribution
AETC Testwork
+500+3017
+300+501132
+180+802725
+150+100158
-150-1004628
Total100100

The above initial results require further analysis and testwork. If through further testwork the benefits in flake size distribution continue and there is sufficient time available, the next steps would be to incorporate the changes into the Stage 1 flowsheet design and a change in the processing reagents. The operating and capital cost changes to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales revenue.

The above results are from the first phase of the AETC program and the Company looks forward to releasing further testwork results as they become available.

Scanning electron microscope image of +30# graphite flake from Bunyu screened product

Management commentary

Volt’s Chief Executive Officer, Trevor Matthews, commented;

“We are delighted with these initial testwork results provided by AETC which confirm that Bunyu’s flake distribution is suitable for supply to traditional markets and for use in new high demand applications such as battery anode end markets.

“Given these latest results we expect to be able to make significant improvements to the project economics outlined in the Stage 1 Feasibility Study for Bunyu, with further details on these changes to be provided in due course.

“Our Stage 1 funding initiatives continue to advance, even in light of the current COVID-19 crisis which is causing delays in the process, and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
UPDATE ON MAURITIAN NOTE OFFER PROCESS

UPDATE ON MAURITIAN NOTE OFFER PROCESS

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that the closing date of the Company’s Mauritian Note Offer (“Note Offer”) has been extended to allow investors sufficient time to finalise their due diligence and investment approval processes.

The Note Offer opened on January 27 and is now planned to close by 24 April 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 30 April 2020.

As previously advised (see ASX release dated 28 January 2020), Volt’s wholly owned subsidiary Volt Graphite Tanzania Plc (“VGT”), is aiming to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise a total of US$30,000,000 by way of private placing on the Development and Enterprise Market (“DEM”) of the Stock Exchange of Mauritius (“SEM”).

Following an extensive three-week roadshow arranged by Alphier Capital, which included meeting with investors in Mauritius, Kenya, South Africa and the Middle East, interested groups are now completing due diligence prior to making a final investment decision.

A number of alternative funding proposals were also presented to the Company during the roadshow and these are currently being progressed in parallel with the completion of the Note Offer process.

Volt’s Chief Executive Officer, Trevor Matthews, commented:

“We are pleased with the positive feedback received to date from potential investors and given this is the first offer of securities by a mining company on the Mauritian Stock Exchange we are happy to extend the Note Offer period to provide more time for investors to assess the opportunity and complete their investment decision making processes.

“I look forward to providing further updates in the near-term as our funding alternatives are advanced.”

This announcement is authorised for release by Volt’s Chief Executive Officer, Trevor Matthews.

For and on behalf of Volt Resources Limited

Trevor Matthews
Chief Executive Officer


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews – Chief Executive Officer
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News