The Aracuai tantalum project 700km north of Rio de Janerio comprises high-grade tantalum-tin mineralisation. SOG said the mineralisation is extensive, near surface, not dissimilar to the Wodgina style of mineralisation and has the potential for large tonnage, low-cost openpit mining.

SOG picks up an 80% stake in the project through the acquisition of unlisted UK company Tanex Resources for US$80,000, with a further US$165,000 plus either $250,000 cash or 110,000 shares due if the Australian company decides to proceed with Aracuai after January next year.

The 20% balance of Aracuai can be bought for US$1.1 million.

The gold project in Peru is held through a 62% stake in Canadian company Pacific Wildcat Resources Corp, and comprises 38sq.km of ground that contains mineralisation typical of a porphyry gold-copper style.

On the nickel front, SOG says its large ground holding in Western Australia contains areas where there is good potential for nickel sulphide mineralisation, and notes LionOre Mining International’s emerging Waterloo and Amorac discoveries are just to the north of its own tenements.

The company also intends to drill a lateritic nickel prospect called Coglia Well south of Laverton in the current quarter.

Other corporate developments last quarter included a $69 million capital raising, and the signing of a heads of agreement with BeMaX Resources and Nissho Iwai to form a new Australian titanium dioxide feedstock producer.

Meantime, gold production in the December quarter came in at 140,110oz at cash costs of $418/oz, with full year targets of 520,000-530,000oz at $420-435/oz reaffirmed.

SOG's tantalum division had sales of 500,240lbs, with around 2.1 million pounds expected for the full year.

Yesterday, SOG announced that founders Chris and Peter Lalor would leave the company, with John Leevers and Neil Hamilton appointed managing director and chairman respectively.

Shares in the company were up 2 cents to $3.78 in early afternoon trade.