SmallCapNews | Mining Week: 15 January

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Mining Week: 15 January

15 January 2010

This week, African Minerals (AMI), the group backed by Frank Timis, sold its diamond operations in Sierra Leone to fellow AIM-listed company Obtala Resources (OBT). Obtala is taking on the new business in return for a 9.9% stake in the company, which values the deal at £4.3 million.

Berkeley Resources (BKY), the Australian group behind plans to develop uranium projects in Spain, cancelled a provisional off-take agreement with Areva NC that was first signed back in March 2006.

Chaarat Gold (CGH), the group which runs the Chaarat gold property in western Kyrgyzstan, struck significant new mineralisation during the latest drilling programme on the site.

Condor Resources (CNR) was granted two new concession areas adjacent and near to its existing 100% owned Cacao and Santa Barbara concessions within the historic La India Gold Mining District in Central Nicaragua.

Emed Mining (EMED) reported some positive developments over its protracted effort to restart production at the Rio Tinto copper mine in Spain. The progress concerned the resolution of a series of legal wrangles brought by previous landowners of the Proyecto Rio Tinto (PRT) site.

Extract Resources, the Australian mining company behind the Husab Uranium Project in Namibia, today said it was continuing to see high grade intercepts from the massive Rossing South mineralised system.

International uranium company Forte Energy completed the formal agreement for the sale of its 50% interest in the Maroochydore copper project in Western Australia.

African gold group Goldplat (GDP) said it would pump US$0.5 million into its newly-acquired Nyieme Gold Project in Burkina Faso. The cash will pay for a 2,500m diamond drilling programme planned for later this year followed by a JORC-compliant resource estimate of the project.

Canadian mining group Greystar Resources (GSL) received C$43.9 million from the exercise of nearly 9.5 million common share purchase warrants and 900,000 agents warrants. The warrants formed part of a financing round completed by the company back in September 2009.

Hambledon Mining (HMB), the gold exploration group behind the Sekisovskoye gold mine in east Kazakhstan, reported its production figures for the three months to December 31, 2009. In total, 201,194 tons of ore were milled during the period, containing 210,263 grams of gold. Of that, 5,409 ounces of gold and 13,478 ounces of silver were recovered.

Herencia Resources (HER) hired specialist drill contractor Major Drilling, to undertake the next drill programme at its Paguanta zinc-silver-lead-gold project in northern Chile.

Canadian group Kirkland Lake Gold discovered two new high-grade zones east of and below the South Mine Complex (SMC) on its 100% owned Macassa property. Separately, the company is set to raise £11.9 million in a private placement after agreeing the terms of a deal with a syndicate of underwriters.

Kopane Diamond Developments (KDD), the diamond producer working in southern Africa, said it was raising around £5.7 million before expenses in a share placing priced at 12p per share.

Lotus Resources, the Plus Markets listed mining group that runs projects in Mongolia, is understood to be in talks with its advisors over a possible switch to London’s Alternative Investment Market (AIM).

Mercator Gold (MCR) kicked off a new diamond drilling programme at its Copper Flat project in new Mexico, US, with a view to producing a bankable feasibility study there.

Xtierra, the TSXV quoted subsidiary of Irish group Minco (MIO) completed oxide metallurgical test work as part of a feasibility study on its 100% owned Bilbao silver-zinc-lead-copper deposit in Mexico. Xtierra is now pushing ahead with implementing a pilot plant test programme at the project.

Nico Kruger, the chief executive of African diamond group Namakwa Diamonds, today said the group was well positioned to both capitalise on the right short-term opportunities and meet its medium-term goals.

Oracle Coalfields, the Plus Markets listed mining group behind a 1.4 billion ton coal deposit in southern Pakistan, signed a Memorandum of Understanding (MOU) with Lucky Cement, Pakistan’s largest cement producer.

Orosur Mining, the gold producer working in Latin America, agreed an option agreement with Gladiator Resources Ltd which gives Gladiator the right to earn up to an 80% interest in the iron ore, manganese ore and base metals potential in Orosur’s project area in the Isla Cristalina Belt (ICB) in Uruguay.

Pan Pacific Aggregates (PPA), the aggregates group based in British Columbia in Canada, was given the go-ahead by local authorities to build a new by-pass road for access to the company’s Quadling Quarry. The move follows a wrangle over who would eventually be responsible for maintaining the road.

Petra Diamonds (PDL), the diamond mining group that runs South Africa’s famous Cullinan mine, said it was on track to achieve its production target of 1.2 million carats for the 2010 financial year.

Red Rock Resource (RRR), the group working on iron ore, manganese, gold and uranium projects in Australia and East Africa, completed a drilling programme on its Migori gold prospect in Kenya.

Australian nickel laterite producer Rusina Mining (RMLA) concluded talks with its local partner in the Philippines that should see the re-start of limited Direct Shipping Ore operations by the end of January.

Vatukoula Gold Mines (VGM), the AIM listed gold producer, released an updated mineral resource estimate for its Vatukoula mine in Fiji. The figures represent the first update since Vatukoula was re-admitted to AIM in March 2008 when River Diamonds, as it was then known, acquired a 100% stake in the mine.

Yamana Gold, the Canadian gold producer, set out its plans for the year ahead, including its operating outlook, production, cash costs and capital expenditure guidance for 2010 and 2011. Production from continuing operations is expected to be in the range of 1.03 million to 1.15 million gold equivalent ounces (GEO) in 2010.