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Geometric Drilling - UK Based onshore drilling contractor

Mining Week: 4 December

04 December 2009

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

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This week, African Eagle Resources (AFE) revealed the results of independent test work on ore from its Dutwa nickel project in Tanzania. MD, Mark Parker, said the results were extremely encouraging, showing very fast reaction kinetics and confirming the good nickel extraction and low acid consumption of the Dutwa ores.

Mexico-based silver producer Arian Silver (AGQ) said it had spent much of the third quarter looking for new funding in and effort to plug a $1.25 million working capital gap in the coming months.

Australian mining group Berkeley Resources (BKY) reported that a scoping study of its Salamanca uranium project in Spain had “strongly demonstrated” the technical and economic viability of the project.

Australian miner Discovery Metals (DME) successfully completed a Share Purchase Plan (SPP), raising $2.7 million with approximately 20% of the company's shareholders accepting the offer to participate.

As part of its effort to restart production at the Rio Tinto copper mine in Spain, Emed Mining (EMED) confirmed that independent experts were on site to conduct due diligence investigations into its operating and rehabilitation plans.

Finders Resources (FND) said it was is set to begin testing high grade vein targets at its Ojolali gold project in Sumatra following the arrival of a man-portable diamond drill rig on site.

Kalimantan Gold (KLG) has agreed a deal to sell the 2,700 hectare Indobara Pratama (IBP) coal concession in Indonesia in a deal which could net the company US$6.1 million and a US$0.50 royalty in every ton of coal produced in the future.

Landore Resources (LND) struck a “significant gold discovery” at its 100%-owned Junior Lake property in Ontario, Canada, close to the Lamaune Iron deposit.

Leyshon Resources (LRL) said the sale of the Zheng Guang gold project in China had completed several months ahead of schedule with all funds now received. The company now has over US$44 million in cash.

Mariana Resources (MARL), the mineral exploration group working in Argentina and Chile, agreed a two-year option to buy out the remaining 30% interest in the Santa Cruz joint venture from its partner, Iamgold Corp.

Ovoca Gold (OVG) appointed Tim McCutcheon as its new chief executive with immediate effect. McCutcheon has been a director of Ovoca since January 2009 and takes over from Mikhail Mogutov, who becomes executive chairman.

Patagonia Gold (PGD) noted that new legislation had been passed in the Santa Cruz province of Argentina that will create an "Area of Special Interest for Mining", east of route 40, in which mining activities will be encouraged. Later in the week, Patagonia reported some exceptionally high grade gold and silver at its Cap-Oeste South East (COSE) prospect, which lies 2km along strike from the Cap-Oeste gold and silver resource.

Petaquilla Minerals, the TSX and OTC Bulletin Board listed gold producer, negotiated a non-brokered private share placing priced at C$0.50 per share to raise C$12 million (£6.9 million).

Petra Diamonds (PDL) said that 40 new international long-only institutional investors had joined its share register as part of the US$120 million (£72.7 million) share placing that it launched last month.

Red Rock Resources (RRR) agreed a deal that takes its stake in the Migori Gold Project in Kenya to 35.2%. The company secured an option deal with a private seller to buy C$360,000 worth of shares in Canadian company Kansai Mining, which owns the Mid-Migori Mining Company and in turn the Migori Gold Project.

Solomon Gold (SOLG) announced plans to buy two gold exploration companies in Queensland, Australia, as part of a strategy to diversify itself into an integrated gold explorer, developer and miner. They include Acapulco Mining Pty Ltd and Central Minerals Pty Ltd.

Exploration group Stratex International (STI) reported a significant new gold discovery in the Afar Region of Ethiopia and secured a three-year 1,579 sq km Exclusive Exploration Licence in order to take a closer look at the area. Separately, the company said it was prioritising further drill work in 2010 at its gold discovery at Öksüt in Central Anatolia in Turkey.

Gemstone producer TanzaniteOne (TNZ) said it had sold US$11.22 million of tanzanite so far in 2009. Of particular note was a 42% rise in sales of lower grade stones in the second half of the year, which came as a result of a new re-grading and classification scheme and a new marketing and sales direction.