SmallCapNews | Mining Week: 6 November

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Mining Week: 6 November

06 November 2009

African Consolidated Resources (AFCR), the Zimbabwe focused mineral exploration group, concluded a contract with South African project manager TWP Holdings for the production of gold from its sulphide concentrate dump at Pickstone.

Elsewhere, African Consolidated completed its acquisition of two companies that own claims prospective for gold at Blue Rock, which is near to its flagship Giant mine.

African Eagle Resources (AFE), the mining group that runs the flagship Dutwa nickel project in Tanzania, reported the first assay results from its 2009 drilling programme.

Allied Gold (AGLD), the AIM and ASX listed outfit which runs the Simberi gold project in Papua New Guinea, received conditional approval from the Toronto Stock Exchange for the listing of its ordinary shares on the exchange. The Australian company said it thought the new listing would be completed by November 12.

Ascot Mining, the Plus-listed gold miner operating in South America, was forced to suspend work at its La Toyota project after a fall out with its joint venture partner. Separately, the company said it was stepping up its mining and milling operations at its flagship Chassoul project and had raised US$389,822 in a share placing with its directors.

ATH Resources (ATH), one of the UK's largest coal producers, refinanced its banking arrangements and agreed a new £30 million revolving credit facility in a club deal with HSBC and Yorkshire Bank.

Baobab Resources (BAO), the iron ore, base and precious metals explorer working in Mozambique, raised an additional £231,000 before expenses through a placing of shares at 6p per share. The move followed a placing by the company in October and was undertaken to satisfy additional demand from a core group of existing long term investors.

Centamin Egypt (CEY), the mid-tier group that runs the Sukari gold project in Egypt, switched its London stock listing from AIM to the Official List.

Chaarat Gold (CGH) announced encouraging results from channel sampling of an underground adit and surface drilling programme on the Tulkubash Zone at its 100% held, 604 sq km Chaarat Gold property in Kyrgyzstan.

Greystar Resources (GSL) said it would initiate a programme of metallurgical testing aimed at investigating the application of agitation leach and/or pre-oxidation as processing methods for intermediate sulphide ore at its 100% owned Angostura gold-silver deposit. As a result, the company’s bankable feasibility study of the project is now expected to be completed in the second half of 2010.

Highland Gold Mining (HGM) reported positive exploration results from its Mnogovershinnoye (MNV) and Lyubov properties.

Karelian (KDR), the AIM listed diamond explorer working in Finland, said it had spent much of 2009 confined to the office in order to keep a lid on costs amid depressed market conditions. However, the company said it was continuing to assess opportunities across Finland.

AIM-quoted gold and copper explorer Kefi Minerals (KEFI) started a drilling programme at its Artvin project in north-east Turkey which is being targeted at a very large geophysical anomaly.

London Mining (LOND), the iron ore project developer, joined London’s AIM market as part of a plan to boost both its liquidity and exposure as it aims to become a mid-tier supplier to the global steel industry.

Irish group Minco (MIO) announced that its TSXV quoted subsidiary, Xtierra, had identified how it was going to process the oxide portion of the resource at its Bilbao silver-lead-zinc deposit in Zacatecas, Mexico. The findings form part of the phase one Feasibility Study at the project.

Mwana Africa PLC (MWA) said that the Industrial Development Corporation of South Africa had approved the provision of up to US$10 million debt funding for the Freda Rebecca gold mine in Zimbabwe.

Nautilus Minerals (NUS) reported the discovery of Solwara 12 and Solwara 13, two new Seafloor Massive Sulphide systems on its wholly owned exploration licences in Papua New Guinea.

JSC Polymetal (PMTL) completed its acquisition of the Varvarinskoye Gold-Copper Mine in Kazakhstan Orsu Metals Corporation.

Randgold Resources (RRS), together with AngloGold Ashanti, entered into a definitive agreement with L'Office des Mines d'Or de Kilo-Moto to purchase an additional 20% stake in the Moto gold project for approximately US$113.6 million.

Red Rock Resources (RRR) paid approximately £565,000 for 9,898,000 shares and warrants Cue Resources Ltd, taking its stake in the business to 15.78%. Canada-based Cue is listed on the TSX Venture Exchange and holds 100% of the 230,000 hectare Yuty uranium project in Paraguay.

Separately, Red Rock reported that ASX-listed Resource Star, which works on uranium exploration in Australia and Malawi, had raised around A$600,000 by issuing approximately 3.7 million shares at 16 cents each. As part of the latest share issue, Red Rock’s holding fell from around 27% to 24.4%.

Shanta Gold (SHG) lodged an application for a mining license with the Commissioner of Minerals in Tanzania. The application is connected to Shanta’s Saza license in the Chunya prospecting area, covering a total area of 7.83 sq km, and proposes the establishment of an open pit and underground mine and a gravity and carbon in leach ore treatment plant.

Strategic Natural Resources (SNRP) raised £650,000 before expenses in a 10p per share placing with institutional and other investors. The funds raised under the placing will be used for general working capital purposes.

Stratex International (STI) said it had received the results of a scoping study of its gold projects at Inlice and Altintepe and was now implementing the recommendations. Its partner, NTF, is continuing to fund $50,000 per month for development work at both Inlice and Altintepe until the two sides sign a definitive agreement.

Sylvania Resources (SLV) and Jubilee Platinum (JLP) agreed to enter into a strategic partnership jointly to provide a total capability solution for the processing of platinum group metals (PGMs) to the secondary PGM sector. This alliance brings together Sylvania's demonstrated ability to retreat surface tailing stockpiles for recovery of PGMs into concentrate and Jubilee's industry accepted ConRoast smelting flexibility.

Separately, Sylvania set out its plans for work on its Platreef properties in South Africa, which it got its hands on as part of the recent acquisitions of SA Metals and Great Australian Resources.

Uruguay Mineral Exploration (UGY), the South American gold production company, rescheduled its merger deal with Fortune Valley Resources Inc, extending the deadline from October 30 to November 6, 2009.

Weatherly International (WTI) agreed an option deal to sell its non-core Kobat mine in Namibia for US$3 million to South African company, Cubenco 192 Pty Ltd. Separately, the company said its smelter at Tsumeb was continuing to improve throughput, smelting a total of 32,935 tonnes of concentrate for the three months ended September 30, 2009, up 10% on the previous quarter.