SmallCapNews | Mining Week: 22 January

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Mining Week: 22 January

22 January 2010

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

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This week, African Copper (ACU), the group with operations in Botswana, reported that 4,344 tons of copper concentrate had been produced from its Mowana mine since production restarted there in late August 2009.

In a letter to shareholders Euan Worthington, the chairman of mining group African Eagle Resources (AFE), said the company’s Dutwa nickel project in Tanzania was continuing to yield positive results. It is also continuing to explore sales of its “non-core” assets, including its Zambian copper and Tanzanian gold projects.

African Minerals (AMI), which has significant iron ore and base metal interests in Sierra Leone, raised £80 million in a share placing with institutional investors. Proceeds from the fundraising will be used to start construction of key infrastructure for Phase 1 of the flagship Tonkolili iron ore project.

Australian group Allied Gold (AGLD) received additional high-grade gold assays from diamond core holes drilled at the Pigiput deposit, which forms part of the Tabar Islands Gold Project in eastern Papua New Guinea.

Angel Mining (ANGM), the AIM listed mining outfit that used to be called Angus & Ross, said that it was close to being cash generative as it edges closer to the start of production from its Nalunaq gold mine in Greenland.

Atlantic Coal (ATC), the open cast coal group with activities in Pennsylvania, US, reached a settlement terminating its supply agreement with Pagnotti Enterprises, Inc. Based on the current sales price of clean washed anthracite, the company reckons the move will save it in excess of US$10 million during the life of its Stockton Mine.

Berkeley Resources (BKY), the Australian exploration group working on uranium exploration in Spain, was given a boost by the findings of the latest drilling at its Salamanca uranium project.

Connemara Mining (CON), the Irish zinc explorer, reported more promising results from the ongoing drilling programme at its Stonepark project near Limerick.

Irish group Conroy Diamonds and Gold (CDG) uncovered positive gold results and the presence of a broad zone of mineralisation during the latest drilling at its Clay Lake gold anomaly in Co. Armagh.

Canada’s Greystar Resources (GSL) reported initial assay results from a targeted drill programme to investigate high grade gold mineralisation at the Los Laches area of the Angostura gold-silver deposit in north-eastern Colombia.

Kefi Minerals (KEFI), the AIM-quoted gold and copper explorer, raised £150,000 before expenses in a share placing priced at 1.6p per share. The move follows a similar fundraising earlier in January at the same price, and brings the total funds raised to £665,000.

Leyshon Resources (LRL), the Australian group that has been sitting on a war chest of nearly A$50 million since selling out of the Chinese Zheng Guang project late last year, started spending its cash. The company entered into a 51%-49% exploration and production joint venture with Qiqiha'r Tai Fu Trading Company Ltd on the QHD Iron Mountain project in the Tang Shan district of Hebei East China.

Medusa Mining (MML), the Australian gold group that is currently developing the Co-O Mine in the Philippines, saw a fall in the inferred resource estimate for the project following a reinterpretation of the resource model.

Irish exploration group Minco (MIO) reported that its TSXV quoted subsidiary, Xtierra had launched a non brokered private placement of up to £2.9 million. Proceeds from the issue will be used to fund further metallurgical testing and feasibility work on Xtierra's Bilbao silver-zinc-copper project in Zacatecas, Mexico.

Minera IRL (MIRL), the Latin American group that runs the Corihuarmi gold mine in Peru, reported that production figures for the mine exceeded expectations last year.

Nyota Minerals (NYO), the group with gold and nickel projects in Africa, reported further encouraging results from a trenching programme completed at its Tulu Kapi gold project in Ethiopia, which took place in December 2009.

Obtala Resources (OBT), the Africa focused mineral explorer, signed a distribution agreement with Hong Kong based VL Holdings that will see VL act as the sole distributor for the diamond production from Obtala’s newly acquired Konoma alluvial diamond operation in Sierra Leone. The news comes just a week after Obtala acquired the Sierra Leone diamond operations of fellow AIM company, African Minerals.

Stratex International (STI), the mineral explorer working on gold and base metal deposits in Turkey and Ethiopia, reported further encouraging gold results from its exploration programme on the 37 sq km Shehagne Exclusive Exploration Licence in northern Ethiopia.

Vane Minerals (VML) acquired the Coyote Basin uranium project located in the Moffat and Rio Blanco counties of north-west Colorado, US. The deal gives Vane 4,900 acres of land over a trend of high-grade uranium, comprising 213 lode claims and one State lease.