Welcome to our regular round-up of small-cap mining company news from the past week: 6 March – 13 March
African Copper (LON:ACU) said plans by its majority shareholder ZCI Ltd to unlock value from its investment in the group had been put on hold. ZCI is understood to have suspended the move as a result of adverse global market conditions for junior mining companies and the general increased risk aversion among investors as a result of economic uncertainty and volatility.
Alexander Mining (LON:AXM) said a patent had been granted in Mongolia for its HyperLeach® Method of Oxidative Leaching of Sulfide Ores and/or Concentrates. This is the same patent that was granted in Australia in October 2012 and describes a method for leaching one or more target metals from a sulphide ore and/or concentrate containing such.
West African gold mining company Amara Mining (LON:AMA) appointed The Right Honourable Peter Hain MP as an independent non-executive director.
Amur Minerals (LON:AMC), the Russia-focused nickel-copper sulphide mineral company, completed the construction of its winter ice road from the Baikal – Amur rail siding to its Kun-Manie project. The 350km ice road, which the company uses to re-stock the project site for the upcoming field season, is constructed annually. Separately, Amur announced its final 2012 exploration drill results from the Kun-Manie project, which consisted of 1,212 metres of diamond drilling within 10 holes located immediately south and adjacent the Ikenskoe deposit. A total of 122.5 metres of nickel and copper mineralisation was intersected in six of the ten holes. Results indicate that mineralisation continues for at least another 200 to 250 metres to the south.
Turkey-focused gold exploration company Ariana Resources (LON:AAU) said that its joint venture partner Proccea Construction Co., had committed to sole funding of the Red Rabbit Gold Project in Western Turkey in advance of receiving Environmental Impact Assessment positive certification as Ariana progresses towards targeted production in 2014. Separately, Ariana reached a license agreement with Newmont Ventures granting the company access to a Turkish exploration database built by Newmont over a period of 20 years.
Aureus Mining (LON:AUE) released the first results from a sixty two hole diamond drilling programme at the Weaju gold target on its 100% owned Bea Mountain Mining licence in Liberia. The results highlighted potential for a large mineralized system covering a two kilometre strike length but further work is required to define the potential size, grade and geometry of this deposit.
Spanish focused gold and tungsten explorers Aurum Mining (LON:AUR) and Ormonde Mining (LON:ORM) announced further assay results from the second stage drilling programme at the Peralonso Permit in the Salamanca Province. Of the 11 holes drilled to date over 1,267 metres, 10 have encountered gold mineralisation in excess of 1 g/t over multiple intersections. Follow up exploration is now being undertaken on the permit area to ensure that the extent of the opportunity is more fully understood.
Beacon Hill Resources (LON:BHR) set out the terms of a proposed fundraising to raise between £10.1m and £16.8m through a share placing priced at 0.25p per share. Funds from the two-tranche placing have been earmarked to improve the infrastructure at its Minas Moatize Coking Coal Project in the Tete province of Mozambique. In particular it will expand and upgrade rail infrastructure including rail sidings, commence the Phase 2B and 2C wash plant upgrades, and pay for rolling stock related and general working capital purposes.
Berkeley Mineral Resources (LON:BMR) launched a programme which is expected to lead to production of zinc and lead and other metals by processing the Washplant tailings stockpiles it owns at the former Kabwe mine site in central Zambia.
Bullabulling Gold (LON:BGL) reported “very positive” initial assays from reverse circulation drilling at the Edwards and Gryphon prospects at its Bullabulling Gold Project near Coolgardie in Western Australia. The company recently completed a pre-feasibility study into the development of a large scale, low cost mining operation at Bullabulling and is now moving into definitive feasibility study. First production is targeted for Q4 2015.
Kyrgyz Republic based gold group Chaarat Gold (LON:CGH) reported that talks were likely to start again soon with Shandong Gold Mineral Resources Group, the third largest gold producer in China. Discussions over a possible transaction between the two sides began last November but were delayed due to a change in senior personnel in the SGMR group.
South African thermal coal production company Continental Coal (AIM:COOL) completed the sale of its shareholding in Vanadium and Magnetite Exploration and Development Co (SA) (Pty) Ltd. Sale proceeds of around US$10m are being used towards purchasing all the outstanding minority interests in Mashala Resources.
Ukraine-focused EastCoal (LON:ECX) reported that, at the end of February, it restarted its wash plant at the Menzhinsky coal mine following the completion of engineering improvements and that it expects wash plant production to ramp up over the next few weeks. The unexpected shut down of the wash plant and geological problems encountered at the Menzhinsky underground mine in January and February meant that very little revenue was received during that period. As a result the company is assessing its financial options to meet its short term working capital requirements.
Uranium company Forte Energy (LON:FTE) announced further assay results from its drilling campaign in Mauritania. Drilling and assay results confirmed intermittent narrow mineralisation over a strike length of 0.5km to the north of the existing A238 Resource.
African rare earth exploration and development company Galileo Resources (LON:GLR) released details of a Preliminary Economic Assessment of its Glenover Rare Earth Project in South Africa. The project has been given an NPV (discounted by 8%) of US$512m.
Griffin Mining (LON:GFM) received approval for the doubling of mining and processing of ore at its Caijiaying zinc gold mine from 750,000 to 1.5 million tonnes per annum. The increase will include an expansion of the processing facilities, the underground development of Zone II and an expansion of the existing mining operations at Zone III. These developments are all subject to the successful granting of a mining licence over Zone II which is not expected to happen before the end of the first quarter of 2014.
Herencia Resources (LON:HER) said it had secured up to US$15m in funds to progress the development, permitting and resource/reserve expansion related work at its 70%-owned Paguanta silver-zinc-lead project in Chile. On 8 March, Herencia executed an Equity Drawdown Agreement for up to US$14.25m investment and issued a convertible security instrument of US$0.75m to The Australian Special Opportunity Fund, a New York-based institutional investor managed by The Lind Partners. As a first payment, Herencia received a total of US$1.2m and thereafter Lind will further invest US$0.3m in monthly share subscriptions, for a maximum of 24 months, subject to certain conditions.
Kibo Mining (LON:KIBO) received a formal notification letter from the Tanzanian Ministry of Energy and Minerals that the Rukwa Coal to Power Project will, with immediate effect, be included as a strategic component of the Tanzanian Government’s National Energy Strategy. The Ministry also confirmed its support for the expedited development of the project to Kibo and its development partners.
Canadian explorer Landore Resources (LON:LND) raised £835,000 through a subscription of 16.7m new shares at a price of 5p each. Proceeds from the subscription will be used to finance working capital in addition to pre-feasibility and technical studies, and exploration expenditures on the nickel deposits at the Junior Lake project in the Province of Ontario, Canada.
Namakwa Diamonds (LON:NAD) successfully closed a recent sale of rough diamonds from the Kao Mine in Lesotho, operated by its 62.5% owned subsidiary, Storm Mountain Diamonds, as well as from its South African North-West subsidiary. All 52 lots offered in the Kao tender, totalling 13,976 carats at an average diamond size of 0.26 carats per stone, were sold at an average selling price of US $274.50 per carat. The sale realised revenues of approximately US$3.84m. The North West production, totalling 1,136 carats in 42 lots, was also sold in Antwerp for the first time at an average price of US$600 per carat, with an average stone size of 0.48 carats. The sale realised revenues of US$681,994.
Ncondezi Coal Company (LON:NCCL) commenced the selection process for the engineering, procurement and construction contractor (EPC) for its 300MW power project, which is located near Tete in northern Mozambique. The EPC’s project capital expenditure quote will form part of the Power Purchase Agreement on which the company expects to start detailed discussions in the next quarter, following the anticipated receipt of the Power Framework Agreement, a key milestone.
A meeting of shareholders of Neos Resources (LON:NEOS) was adjourned indefinitely by the company after its largest shareholder indicated that it planned to block plans for Neos to delist from AIM.
David Fowler is set to resign as chief executive of Orosur Mining (LON:OMI) on 31 May. The South American focused gold explorer and producer is now in the process of recruiting a replacement. Elsewhere, Orosur said production for the third quarter ended 28 February was 18,401 ounces, resulting in year to date production for the 9 months of 47,822 ounces. The company’s production forecast remains 63,000 to 68,000 ounces for the full year.
Lesotho-focused Paragon Diamonds (LON:PRG) received its completed high level scoping study for its Lemphane kimberlite project. It has now submitted the Project Brief and Environmental Terms of Reference as the first stages towards its ongoing Environmental Impact Assessment. A Mining Lease Application has been prepared and submitted to and acknowledged by the Ministry of Mines.
Patagonia Gold (LON:PGD) said it was continuing to make progress at its Lomada de Leiva and Cap-Oeste projects in Santa Cruz Province, Argentina. The Lomada main heap leach project is on target to achieve full operational status by late Q2 2013 with an estimated production of 14,000 ounces of gold for the second half of 2013. The US$9.4m fundraising earlier this month will allow the acceleration of drilling on the highly prospective Cap-Oeste/COSE corridor and other nearby targets
Rambler Metals and Mining (LON:RMM) reported that a total of approximately 3,150 wet metric tonnes of copper concentrate was loaded and shipped from the its storage facility at Goodyear’s Cove on 23 February. The concentrate is destined for a smelter in Europe. This was the second shipment as part of an off-take agreement with Transamine Trading SA.
Rare Earth Minerals (LON:REM), the rare earth minerals and metals projects investment company, raised £400,000 in a placing priced at 0.06p per share together with a 0.5 warrant for each placing share subscribed. The funds raised will be used to pay for drilling and exploration commitments on the El Sauz and Fleur Lithium/Rare Earth licences as per a MOU with Bacanora Minerals.
Red Rock Resources (LON:RRR) raised £250,000 by issuing shares priced at 0.9474p through its Standby Equity Distribution Agreement with YA Global Master SPV Ltd, which is advised by Yorkville Advisors. The proceeds of the subscription are being applied towards to reducing Red Rock’s loan with YA Global Master SPV Ltd.
Gemstone producer Richland Resources (LON:RLD) signed an exclusivity agreement with a major international trading company regarding Richland’s graphite project in its Block C licence area in Tanzania, 1km from where the company has mined tanzanite since 2004. The two sides have agreed to look in to the feasibility of a potential business relationship in connection with flake graphite mining and processing in Tanzania.
Following recent board changes, South Africa-based coal mining group Strategic Natural Resources (LON:SNRP) has implemented a full operational review. The company acknowledged that key delivery targets had been missed due to various factors, including wash plant engineering and commissioning issues and the on-going optimisation and supply chain challenges associated with establishing a mine in the Eastern Cape for the first time in over 100 years. The company is currently working with Trasteel (its off-take partner) to firm up a new delivery schedule for its coal, beginning early in the second quarter of the year.
Sylvania Platinum (LON:SLP) said that two separate underground incidents at Samancor’s Mooinooi host mine had disrupted production at its Mooinooi run-of-mine plant. Production losses as a result of the stoppages is approximately 900 oz and the company is currently reviewing strategies to make up these losses.
Fluorspar project developer Tertiary Minerals (LON:TYM) raised £179,099 under its £10 million Equity Finance Facility with Darwin Strategic by issuing shares at 9.1846p each.
West African Minerals (LON:WAFM) issued the results of the first batch of prospect holes drilled on its South Djadom concession in Cameroon. The drilling followed a gravity gradiometry survey flown over portions of the company’s large-scale Djadom and Lélé iron ore exploration permits. The survey identified numerous density anomalies which were then drilled. Results of first 42 drill holes in South Djadom confirmed hematite and enriched banded iron formation mineralisation over a 3km by 2km area
Wolf Minerals (LON:WLFE) awarded a £75m Engineer Procure Construct (EPC) contract for its Hemerdon tungsten and tin project to GR Engineering Services (ASX:GNG). The deal covers the design, construction and commissioning of a 3Mtpa tungsten and tin mineral processing plant plus associated infrastructure, forming the key component of the Hemerdon project.
To download a PDF of this round-up, click here: Mining Round-Up 13-03-13
