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Geometric Drilling - UK Based onshore drilling contractor

Mining Week: 8 January

08 January 2010

This week, Allied Gold (AGLD) restarted full production at its mining operations on Simberi Island in Papua New Guinea following disruptive action by land owners there. Trouble erupted at the end of December when the company was hit with a Cease Work Order from the Mineral Resources Association of PNG.

AIM listed Archipelago Resources (AR.) signed an outline agreement with a syndicate of banks for project funding of up to US$70 million (£43.7 million) for its 85% owned Toka Tindung gold project in North Sulawesi, Indonesia. Later in the week, Archipelago announced plans to dual list its shares on the Australian Stock Exchange during the first half of 2010 in order to tap into a broader base of potential investors.

Beacon Hill Resources (BHR) said that it had taken the first key steps in the development of the Arthur's River magnesite project in north-west Tasmania, including the submission of an application for a mining lease. Later on, the company reported that it had entered into an exclusivity agreement that could eventually see it buying a stake in a coal mine in the Tete Province of Mozambique.

Forte Energy (FTE), the Australian uranium miner is expected to deliver a maiden JORC-compliant resource estimate during the first quarter of the year for its Bir En Nar project in Mauritania, West Africa.

Kefi Minerals (KEFI), the gold and copper explorer with projects in Turkey and Saudi Arabia, kicked off a drilling programme at the Bakir Tepe Project in south-west Turkey. On Friday, the company said it had raised approximately £515,000 before expenses in a share placing priced at 1.6p per share.

Leyshon Resources (LRL) revealed the terms of an on-market share buy-back of up to 21,800,000 shares, representing around 10% of its issued stock. The buy-back will begin on January 19, 2010 and will have a maximum duration of 12 months. The company said it was actively working on a number of investment opportunities which had the potential to fit the criteria set out in the proposed investing policy.

Plus Markets traded Lotus Resources, which is working on developing mining and exploration projects in Mongolia, snapped up another fluorspar mining licence for US$70,000.

African diamond operation Namakwa Diamonds (NAD) reported that the Lesotho Government had transferred the mining lease to the Kao Kimberlite Pipe to Namakwa Batla Diamonds (NBDL), the company's joint venture with Batla Minerals, the Government and Lesotho investors. As part of the deal, the Lesotho Government has also entered into a mining agreement with NBDL.

Oxus Gold (OXS) looks set to pump US$185 million into its Amantaytau Goldfields (AGF) joint venture in Uzbekistan after agreeing a financing deal with a group of Chinese investors.

Petaquilla Minerals reported an average of 81.47% gold recovery from column leach testing of 'low grade' oxide material from its 100% owned Molejon Gold Project located within the Petaquilla Mineral District of Central Panama.

Petra Diamonds (PDL) restarted production at its Koffiefontein mine in South Africa following a 48 hour suspension of operations caused by the death of a worker at the mine last weekend.

Platinum Australia (PLAA), the AIM and ASX listed group, agreed a deal that will see Japan Oil, Gas and Metals National Corporation (JOGMEC) earn an initial 35% interest in the Stellex North Project by injecting US$3.5 million of exploration funding over the next four years.