SmallCapNews | Mining Week: 16 May

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Mining Week: 16 May

Friday, May 16, 2008

This week began with news that Plus Markets listed Eyeconomy (EYE) is planning to start a drilling programme at its Marshall Lake property in north western Ontario, Canada. Past drilling efforts have resulted in outlining several copper and zinc mineralized zones. The current programme aims to discover hidden mineralization with the aid of modern geophysics.

Mid-tier diamond producer Pangea Diamondfields (PDF) has ditched two of its operations in the Democratic Republic of Congo (DRC) in a move to consolidate its projects across Africa. Chief executive, Rob Still, noted: “Our sights are set very clearly on the objective to have at least three projects in commercial scale operation and be cash flow positive by the end of 2009.”

Braemore Resources (BRR) updated the market on progress on the Leinster Nickel Sulphide Tailings Project in western Australia. The company said the final stage of atmospheric leach test work had started at the Outotec Research laboratories in Pori,
Finland.

It was mixed news from Hambledon Mining (HMB), which announced the first sales of gold from its Sekisovskoye deposit in Kazakhstan. Hambledon said all aspects of the processing plant were operating well and that an annual output of around 100,000 ounces per year was now expected. However, at Ognevka initial production levels have been disappointing. Steps have been put in place to upgrade the performance.

Tertiary Minerals (TYM) reported positive initial findings from the completion of its first drilling programme at its 100% owned Storuman fluorspar deposit in the Västerbotten district of Northern Sweden. Executive chairman Patrick Cheetham said: “My initial impression is that the programme has met all of our expectations, and more.”

African Eagle Resources (AFE) was hit by news that Phelps Dodge Mining Zambia (PDMZ), which has been funding its exploration of the Ndola project in the Zambian copperbelt, had pulled out of a right to earn an interest in the project. MD Mark Parker noted: “Whilst we are disappointed that PDMZ chose not to continue working with us at Ndola, we recognise that they have their own priorities.”

Ariana Resources (AAU) has agreed a deal connected to the purchase of certain exploration licenses in Turkey, collectively known as the Tavsan Project, from TSX-listed Odyssey Resources.

Investors gave the thumbs-up to improved prospects for the start of production at Ormonde Mining’s (ORM) Barruecopardo tungsten project in Spain. Announcing full year results, Ormonde said that Barruecopardo had been upgraded to advanced project status. Pre-tax losses for the year were broadly the same as 2006 at £0.6 million.

Brinkley Mining’s (BRM) 70pc owned Nigerian subsidiary, African Uranium, has been granted an Exploration Permit 'Terzemasour 3' in Niger. Terzemasour 3 covers an area of 422.3 sq km and is near to the Arlit fault which is the main structural control to the existing uranium producing mines in Niger.

Landore Resources (LND) secured a JORC code compliant resource estimate for the B4-7 Nickel Copper Cobalt PGE deposit located at its Junior Lake project in Ontario, Canada. Chairman Bill Humphries said the move “significantly enhances” Landore's prospects of becoming a nickel producer in the medium term.

Ridge Mining (RDG) reported that its 50pc owned subsidiary, Blue Ridge Platinum, had completed the conditions to drawdown on its loan finance facilities of ZAR715m (US$93.8m) project finance. The loan facility will be used to finance the continued development of the Blue Ridge platinum group metals mine on the eastern limb of the Bushveld in South Africa.

Greatland Gold (GGP), the mineral explorer working in Tasmania and Western Australia, said recent drilling at its Warrentinna project indicated “potential for a large tonnage open pittable gold resource”. At Firetower a programme of sub audio magnetics (SAM) has been completed over the immediate resource area.

Lonrho’s (LONR) 23pc owned Lonrho Mining business has discovered an exceptional 61.30 carat fancy yellow diamond at the Schmidtsdrift Mine. The diamond is octahedron in shape and is expected to yield a high value

It’s been a busy time at Neptune Minerals (NPM). The explorer and developer of Seafloor Massive Sulphide (SMS) deposits has just lodged 405 prospecting licence applications over highly prospective areas within the territorial waters of Japan. The applications now await approval from Japan's Ministry for Economy, Trade and Industry to be granted as prospecting licences.

African Copper (ACU) reported that production at its Mowana Mine Property in Botswana would start in the second quarter of 2008. It said the move would turn it from a junior exploration company to a copper producer. ACU also has a 100% interest in the Matsitama exploration concession, which has ten high-priority drill-ready and 35 lower priority targets.

Kalimantan Gold (KLG) has signed an option agreement to acquire a 75% stake in each of five Indonesian companies each holding a single coal concession in Indonesia. Pursuant to the option agreement the Kalimantan has an exclusive six month period in which to conduct its due diligence including carrying out a minimum program of 3,000 metres of drilling.

Tianshan Goldfields (TGF) has kicked off the 2008 drilling programme at its 90% owned Gold Mountain project in northwest China. The move follows news in February of a significant upgrade in the classification of the resources at Gold Mountain, with combined total measured and indicated mineral resources increasing to over 2 million ounces.