SmallCapNews | Mining Week: 20 November

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Mining Week: 20 November

20 November 2009

The latest news, moves, deals, drilling, surveys and speculation from small cap miners

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African Consolidated Resources (AFCR), the Zimbabwe focused exploration company, is charging ahead with a new 13.75p per share placing and subscription round that should net the company £9.5 million.

Shares in AIM listed Altona Energy (ANR) soared on news that the company had signed a binding joint venture deal with CNOOC-NEI to develop the Arckaringa coal project. CNOOC-NEI is a subsidiary of Chinese state-owned oil company, China National Offshore Oil Corporation.

Anglesey Mining (AYM), the AIM listed group with a 50% stake in a 90 million ton iron ore project in Labrador, Canada, said the operation had made steady progress through the first half of the year. Production at the mine is set to get underway next year.

Beowulf Mining (BEM) reported positive results from flotation tests conducted on ore extracted from its Lulepotten copper-gold deposit in Northern Sweden.

AIM listed mining group Conroy Diamonds and Gold (CDG) raised £250,000 in a 3.5p per share subscription from T1ps Smaller Companies Growth Fund and T1ps Smaller Companies Gold Fund.

DiamondCorp (DCP), the Southern African diamond specialist, completed the first part of a drilling programme on the J1 kimberlite target in the Jwaneng South Project Area of Botswana.

Extract Resources, the Australian listed company behind the potentially massive uranium discovery at Rossing South in Namibia, said it was on the look-out for partners to help it develop the project. Separately, Extract said that ongoing work on the project had reinforced its view that it was “one of the most significant uranium discoveries ever made”.

Kryso Resources (KYS), the gold explorer that is currently taking the Pakrut project in Tajikistan through a bankable feasibility study, updated the total JORC-compliant resource for the project to 2,830,104 ounces of gold.

Metals Exploration (MTL) was forced to launch a damage limitation exercise after a new JORC-compliant update for its Runruno gold and molybdenum project in the Philippines slashed its resource estimates to 1.5 million ounces of gold from 2.0 million ounces previously. The total estimated amount of molybdenum also fell to 25.4 million pounds from 34.4 million pounds.

Irish mining group Minco (MIO) said that its TSXV quoted subsidiary, Xtierra Inc had entered into an agreement with Australian company Indo Gold over the option and sale of the silver-rich Laguna Pedernalillo transported tailings deposit located near the town of Guadalupe in the State of Zacatecas, Central Mexico.

Malaysian based gold producer Peninsular Gold (PGL) said that production from its Raub mine was progressing well since gold was first poured there back in February this year. October production was up to approximately 1,520 ounces and is expected to increase as the operation steadily ramps up its throughput.

Diamond mining group Petra Diamonds (PDL) announced plans to increase its stake in the famous Cullinan mine in South Africa by buying out its partner, Al Rajhi Holdings.

AIM listed Red Rock Resources (RRR), the group working on advancing iron ore, manganese and uranium projects in Australia and East Africa, has drawn down £100,000 from its standby equity distribution agreement (SEDA) with investment company, Yorkville Advisors LLC.

Serabi Mining (SRB), the company behind the Palito gold mining project in Brazil, launched an effort to raise £317,274 through a 1.5p per share open offer on a 1 for 14 bases. The move follows last week’s successful share placing and convertible facility deal, which together raised £2.4 million.

Tertiary Minerals (TYM), the group whose projects include the Stourman fluorspar project in Sweden, reported that independent analysis of the project has confirmed that it could be home to over 3 million tonnes of contained fluorspar.

Titanium Resources (TXR) said it was raising approximately £15.1 million in a 10p per share placing in order to fund work to increase production at its Sierra Rutile mine in Sierra Leone.

Shares in UK Coal (UKC) tumbled after the group revised down its production estimates for the year. While production from the company’s four surface mines remains on track to reach 1.4 million tons, its deep mining operations have been performing badly and are now set to produce between 5.7 and 5.8 million tons from a previously expected 6.2 million tons.

Vane Minerals (VML) reported significant high grade uranium zones during further drill testing at the Wate breccia pipe in northern Arizona, US.

ZincOx Resources (ZOX) signed a two-week standstill agreement with the bondholders of its 52%-owned Jabal Salab operation, which is behind the development of the Jabali mine in Yemen.