Morning View:

Gold US$1,728/oz - Copper US$ 8,401/t

· Gold prices rise on EU financial crisis while copper falls on profit taking and on risk-off trading

· US – US economic data on Friday disappointed the market as Q4 GDP missed 3% at 2.8% growth

· Tomorrow – EU unemployment figures (forecast for >10.4% for December from 10.3% in November)

European finance ministers meeting today in Brussels

German government puts its foot down - German proposal to impose financial austerity on the Greeks

o Greek government fails to meet fiscal deadlines – eg non collection of taxes and overweight government budgets

o Proposal - EU Commissioner to have power to veto Greek government budget decisions if not in line with targets set by international lenders

o Undertaking to adopt law to permanently commit Greek state revenues to debt service ahead of other services.

Economic News:

Europe – EU leaders gather for their first European summit of 2012 today. 

· Reports are emerging that Greek officials are throwing the toys out of the pram over German plans to impose a budget overseer onto Athens in return for an additional €130bn. 

· Private bond holders have reportedly accepted a cut to the long term value of bonds by just over 70%. 

· The final signing has been delayed as a result of an argument over where the additional funding, required to plug the shortfall will come from. 

· The options to plug the shortfall: new austerity measures, additional loans from the EU or new loans from the ECB. 

· The FT is reporting that the plan from the Germans would also involve forcing Greece to pay its debt obligations before spending any money on everyday government expenditure. 

· Unemployment figures will be released tomorrow. Forecasts suggest that the rate will climb to 10.4% in December having held at 10.3% in November. 

· German unemployment is forecast to hold at 6.8%. 

· In the face of growing opposition French President Sarkozy has stated that a unilateral tax of 0.1% on financial transactions will be imposed from August. 

China – Stocks have fallen today as a result of poor consumer spending figures over the week long holiday. 

· Property and retail sales reportedly weakened over the holiday period.  

· Chinese officials have held off lowering the bank reserve requirements and loosening monetary policy in contrast to market expectations. 

· Economists had forecast that the country’s central bank would signal a loosening of policy to ensure that funds continued to flow over the holiday period.

· However it appears that inflationary concerns remain at the forefront of official decisions with the central bank reticent to relive the credit boom of 2009/10. 

· Central Banks across Asia have cut reserve requirements this month. India, Thailand and the Philippines have reduced interest rates, suggesting a common concern that the apparent slowdown in Europe and the threat to the region’s exports is more of a prominent concern than inflationary pressure. 

Japan – Japanese stocks were off for a third day in a row today, after the US economy expanded less than forecast according to official figures on Friday. 

· Markets reacted poorly to the news that the US economy failed to expand as much as estimated in Q4. 

· As a result the yen strengthened against the dollar and the market eased slightly.   

US – As stated previously the US economy expanded less than forecast in Q4 according to figures released Friday. 

· Focus this week will be on non farm payroll figures released on Friday. 

· Forecasts suggest that the figure will be weaker than in December – on the back of inflated holiday hiring. 

· Estimates put 150,000 jobs created in January. 

· As a precursor – The ADP Employment report on private sector is expected to show that 185,000 jobs were created last month. 

UK – Figures released today show that UK house prices were unchanged in January. Additionally prices will continue to feel the downward pressure amid a squeeze on consumers. 

· From a year earlier values fell 1.6% in January. 

· The UK economy shrank 0.2% in Q4 on the back of rising unemployment and the debt crisis that dampened consumer spending. 

Syria – Reports are emerging that fighting in Damascus has intensified with pressure building for a UN Security Council resolution calling for the President Bashar al-Assad to step aside. 

· Russia has already vetoed one Security Council resolution on Syria. 

Iran – Over the weekend it emerged that official will halt oil sales to some countries as the government tries to safe face and pre-empt the European embargo. 

· Reports are emerging however over a split in the parliament between the legislative body and the government of Mahmoud Ahmandi-Nejad. 

· The European ban on oil imports is set to take effect in July. 

Philippines – Figures released today show that economic growth accelerated for a second straight quarter as rising consumer and government spending helped the nation cushion an export slowdown. 

· GDP rose 3.7% in Q4 after a revised 3.6% increase in Q3. 

Nigeria – Reports are emerging that Nigeria will seek compensation for an oil spill from Shell – according to the country’s President. 

Commodity News:

Precious:

Gold US$1,728/oz vs US$1,718/oz last week – Gold prices weakened for the first time in 4 days on stronger dollar ahead of the first debt-crisis summit of European Union leaders this year.

· Holdings in gold backed ETPs gained 0.5% to 2,371.98t last week.

· SPDR gold trust holdings increased to 1.271t (40.867moz) value US$70.513bn from 1.261t (40.546moz).

Platinum US$1,604/oz vs US$1,604/oz last week

Palladium US$681/oz vs US$687/oz last week

Silver US$33.33/oz vs US$33.38/oz last week

Rhodium US$1,375/oz vs US$1,363/oz last week                                                          

Base metals:

Copper US$ 8,401/t vs US$8,536/t last week – Copper is off this morning as market participants book profits after the metal reached a US$8,679.5/t level on Friday, the highest reading since mid-Sep.

· Zijin Mining Group, the largest gold miner by market value in China, dropped by the most in six weeks following 3 casualties at its copper smelting unit.

· The company reported that three workers died as they tried to rescue a fellow employee who had fainted while trying to unblock a coke container. Operations have been suspended.

· Copper mine supply is forecast to increase by 9.4% this year with 85% of growth attributable to Latin and North America and Africa.

Aluminium US$ 2,232/t vs US$2,265/t last week

· Rusal, the largest aluminum producer, may cut production by 6% in the next 18 months, CEO Oleg Deripaska said. 

· The company is capable of producing 4.7mt of the metal per annum.

· Rusal can “go downstream, adding value in producing alloys”, Deripaska said.

Nickel US$ 21,420/t vs US$21,410/t last week

· Norilsk Nickel produced 79,616t of nickel in Q4 2011, little changed from 2010. Total nickel production in 2011 was 295,096t compared to 297,329 in 2010.

· Norilsk Nickel’s copper and palladium output gained in 2011 and Platinum production dropped.

Zinc US$ 2,107/t vs US$2,184/t last week

Lead US$ 2,256/t vs US$2,310/t last week

Tin US$ 24,100/t vs US$24,150/t last week

Energy:

Oil US$111.12/bbl vs US$110.78/bbl last week – Brent crude gains off of news that Iran may halt some oil supply to counter the embargo that is to be enforced by 1st July 2012. 

· The tactic could potentially inflict further unprepared-for damage to the EU’s debt-crisis recovery if fuel consumption is taken away. 

· India has stated that it will not reduce Iranian crude imports because it cannot do without it as an emerging economy. India imports c.12% of its oil from Iran. 

· U.S. crude futures decline this morning at $98.86 on the New York Mercantile exchange and WTI the same at $99.00 on the London-based ICE futures exchange. 

· A “humanitarian crisis” could become a reality very soon if border disputes over oil ownership between South Sudan and Sudan cannot be resolved, said a U.S. envoy to the associated press. 

· The two countries were at the African union summit on Sunday in Addis Ababa- Ethiopia’s capital. 

· South Sudan became an independent state on 9th July 2011. and disputes have been continuous due to c.80% of oil found in Sudan/South Sudan is in the Southern region and negotiations on revenue splits have constantly failed. 

· South Sudan heavily relies on the pipelines, refineries and port facilities in the Red Sea state in Sudan. Sudan wants a 50-50 split. 

Natural Gas US$2.82/mmbtu vs US$2.651/mmbtu last week – Henry Hub was at $2.756

· Russia’s Prime Minister Vladimir Putin has said he wants to reduce shareholding in state-owned in energy companies if… when he is re-elected for a further 6 year term as president. 

· Energy czar Igor Sechin, a close ally of Putin is not in agreement citing unfavourable market conditions. 

Uranium US$53.45/lbs vs US$53.45/lbs last week – Canadian uranium company Fission Energy, may be the next takeover target for its Waterbury Lake Deposit, situated next door to Hathor Exploration’s Roughrider project.

Coal – Plans of the billionaire Nathan Tinkler to build a A$2.5bn coal export terminal on the eat coast have been rejected by the New South Wales Government.

· The government will continue to build on existing facilities for the expansion in coal terminal capacity. 

· Australian ports are experiencing some bottlenecking at railroads and ships queuing, waiting for loads. As the demand continues to rise.

Other:

Iron Ore – Iron ore shipments to China from the top 10 largest suppliers reached 686.1mt in 2011, a 9.8% increase from 2010.

· Australia (396.7mt), Brazil (142.7mt) and India (73.1mt) – top 3 suppliers.

· India was the only country out op 10 top suppliers to register a drop in shipments in 2011. Imports from India declined by 24.3% yoy to 73.1mt, according to Chinese customs.

· Export bans, a clearout of illegal mining and rising export levy all cut iron ore exports from India.

Steel – JFE Holdings, Japan’s second biggest steel maker, forecast its first annual loss on weaker industrial demand for the metal and appreciating national currency.

· The company estimates a los of 40bn yen (US$522m) in the fiscal year 2011 that runs from March 31. The first annual loss since Kawasaki Steel and NKK merged in 2002 to form JFE Holdings.

· JFE recorded a loss of 12.9bn yen in the Oct-Dec quarter in 2011 compared to a profit of 18.5bn yen last year.

Molybdenum – Prices in the US market have increased as offtake agreements reduced volumes available for the spot market.

· Molybdic oxide currently trades at US$14.20-14.45/lb from US$13.90-14/lb previously and ferromolybdenum prices grew slightly to US$16.30-16.55/lb versus US$16.25-16.50/lb earlier. 

Company news:

Ampella Mining* (ASX:AMP) – Metallurgical work at Konkera show 88%-98% recovery

http://www.ampella.com.au

· Ampella Mining have announced metallurgical recoveries following testwork on ore from the Konkera project in Burkina Faso.

· CIL oxide recoveries are good at 94% to 98% 

· Trasitional ore recoveries range 88% to 95%, again a good result for transitional ores

· Grinding of ore to P80 106 microns is required which will add to capital and operating costs 

· Gravity recovery rates, which help to lower costs, give 30-50% recovery.

· Ore from the Kouglaga sulphide part of the project shows very good recovery of 98% 

· Konkeral ores appear to respond well to flotation from low gold bearing concentrates..

· Konkera Main / East sulphide ores saw lower recovery rates at 71% pulling overall recoveries down by 84%.

· Recovery rates may be raised to 9%% through ‘Albion sulphide oxidisation and subsequent leaching’.

· The work indicates strong cash flow generation potential for the early years from high recovery rates.

· Lower recoveries in later years through conventional recoveries or the addition of the ‘Albion’ process may reduce the value of production in later years but is unlikely to impact any decision to go ahead.

Conclusion:  The recovery work appears to support a decision to push ahead with the feasibility work on this new gold mine.  Good recoveries can be made from lighter grinding of the ore at Konkera but higher recoveries should be achieved on greater grinding.  Fine grinding raises operating costs but the capital cost is not onerous these days and enables better liberation of the fine gold in these ores.  We look forward to further news on the project development.

*Fairfax has acted for Ampella Mining in their last three placings

Bellzone Mining (LON:BZM) – Forecariah JV Progress Update

· The company have updated on their Forecariah JV in the Republic of Guinea. 

· Resource Estimate: The initial internal resource development and mine plan is for a 2mt production for the first year of production of a 58% Fe product. 

· This will be produced from a 55% Fe iron oxide cap which will need to be upgraded through a crushing and screening process to achieve a 58% Fe product for sale. 

· Further test work, development and costing is underway for the gravity beneficiation process to produce 58% Fe from 19.1 mt of lower grade surface oxide resource at Yomboyeli Central – results of which are expected in Q2 2012. 

· The internally estimated resource has 5.9 mt of 45.7% Fe and 13.2 mt at 34% Fe. 

· Further work is continuing on an internally generated resource of 24% Fe from a resource estimate which has increased from 125 mt to 136 mt of 24% Fe giving contained iron or 32.6 mt. 

· The company are testing for a 58% Fe product from this resource through a process of grinding and low intensity magnetic separation. 

· The company is continuing to do RC drilling on the Yomboyelli Central to increase the oxide resource. 

· Mine and Plant Development: Mine, processing and road haulage equipment is under commissioning and road construction for haulage is on schedule for Q1 2012. 

· Port Development is on track and the marine fleet is en route to Guinea. 

· Approvals and Permits: Forecariah mine and Konta port feasibility studies and Environmental, Social, and Economic impact study documentation have been submitted to the Department of Mines and Geology and are awaiting their assessment to provide approvals. 

· The company is still expecting to start production in Q1 2012. 

Conclusion: Given the timing of the start of production we would look for news on permitting and approvals to be forthcoming. The quality of the resource potential is also yet to be established and we are surprised at the grades of 24% Fe at the haematite “schist”

Diamond Corp (LON:DCP) – Operational Update

· The company has updated on the progress on the financing for the Lace Diamond mine and also an updated mine plan. 

· Financing: The company is in discussions with six parties who are interested in debt financing the development of the mine. 

· In addition to traditional banks, the company is in discussion with trade financiers, Government development agencies and other mining companies to find the optimal solution for funding. 

· Indicative terms would suggest that equity dilution for shareholders will be minimised. 

· In order to secure debt financing, the company has appointed SRK to provide an independent engineering report which will provide the company and potential financiers an independent sign off on the proposed mining method, mine plan and detailed financial model for Lace. 

· Work on the report is progressing well and is scheduled to be completed in the current quarter. 

· Revision of Mine Plan: The company has revised the mine plan to start the first block caving at a deeper level – 47 Level which is 470 m deep, 130 m deeper than originally planned. 

· This is based on geotechnical test work which would suggest that the higher rock strength on the production level in the block cave should have a long life without requiring secondary support. 

· This will have an overall positive impact on the capital and operating costs over the life of the block which will increase from 5 years to 9 nine years. 

· The tonnage from the first block increases by 84% from 6.57 m to 12.12 m tonnes with contained diamonds increasing by a potential 114% from 1.6 m carats to 3.4 m carats. 

· Average grades are estimated to be higher at 40 cpht in this part of the pipe as the cave will be located in a higher grade kimberlite. 

· The initial capital cost based on starting at 47 level will an increase the initial capital cost and ramp up period. 

· Capital costs will rise by 10% to R450 m ($58m including $7.8m of contingencies) from R405 m ($52m) and the ramp up period extended from 24 months to 33 months. 

· The new mine plan expects to generate R432 m ($55m)  of revenues during the 33 month ramp up period from a combination of diamonds recovered from undercut, initial caving and tailings retreatment. 

· The maximum cash draw down is expected in month 21 of the development schedule of R250m (US$32m) and expects development capital to be repaid by month 33 when caving reaches 4,000 tonnes per day full production rate. 

· The working capital requirement for the mine development plan is approximately R100m ($12.8m) – this is more that originally Lace mine plan. 

· The estimated diamond production is expected to be more than 400,000 carats per annum and based on current diamond prices of $160 per carat would achieve revenues of US$60m. 

· Detailed cost estimates are being reviewed by SRK – initial operating margins could be in the range of 65%. 

· Potential between level 24 and 33: There is a bulge between level 24 and 33 levels which would suggest that level 33 is approximately 50% greater than the pipe at level 24. 

· The company is looking at early mining in this kimberlite using rim loading, a mining method used by De Beers at Finsch and Kimberley mines. This is currently not in mine plans. 

· Exploration at Botswana: The company are expecting results from the diamond drilling at J-01, the diamondiferous kimberlite being explored 9 km from the Jwaneng mine in Botswana. 

Conclusion:  The company is having constructive discussions with debt financiers to fund the development of the Lace mine. The higher debt component of any financing package should minimise the dilution to shareholders. The revised mine plan shows potentially higher cash flows which should be attractive to debt financiers.  The new projections outlined in the mine plan imply a higher NPV than the previous plan. All this augurs well for upside in the shares once there is greater clarity on the financing package. We will be reviewing our valuation for the project based on the new mine plan.

Discovery Metals (LON:DME) – Delisting from AIM, Retaining ASX and Botswana Stock Exchange Listings

· The company has decided that effective from 30 March 2012 they will be de-listing from the AIM and has applied for cancellation of trading of company’s shares. 

· The last day of trading on AIM will be 29 March 2012. 

· The company believe that their existing listings on ASX and Botswana Stock Exchange provide institutions in London and Europe sufficient access for trading. 

· The company will continued to maintain a marketing presence in London through its existing UK based brokers so that investors will continue to have access to management and be fully briefed on the company’s operations and activities. 

Goldplat (LON:GDP) – Operations Update on Recovery Operations

· Following their positive update on their overall operations last week, the company has updated on their recovery operations in South Africa and Ghana. 

· South Africa: The operation is doing well and in line with management expectations. 

· In order to improve efficiency and profitability, the company has invested in additional plant and is reviewing new business opportunities. 

· The company have expanded their milling capacity and invested in a new fluidised bed incinerator. 

· This will increase their ability to bid for fine carbon contracts from mining companies and reduce stocks of gold bearing material. 

· The company is actively seeking new contracts for processing materials. 

· Contracts to mine shafts for two mid-tier gold companies where contracts will be struck on a net smelter return basis. 

· The company is doing a feasibility study on reprocessing tailings from the recovery operations. 

· Ghana: Operations are ahead of management plans. 

· There has been a marked increase in their by-products received through existing contracts with Goldfield Ltd, AngloGold Ashanti and Gold Star Resouces. 

· As a result the company has placed an order for a second fluidised bed incinerator which is expected in Q1 2012. 

· Efficiency at their toll processing plant at Adamus which is offsite is being increased by getting orders closer to site to minimise transport costs. 

· The company is in advanced discussions with other mining companies to acquire further material for processing from Burkina Faso and Mali. 

Conclusion: Both recovery operations are going well and the investments being made will increase capacity to take on further business.

This is a very positive update for Goldplats – the company are guiding to good performance in their gold recovery operations with South Africa performing in line with management guidance and Ghana exceeding expectations. Both operations generated PBT of £3.1m in 2011 – the doubling of production from gold recovery from the Ghanaian operation helped to boost FY2011  operating profits by 40%.

Profits for this year FY 2012 (June year end) will be boosted by the continuing performance of the gold recovery business (particularly Ghana) as well as the gold production coming through from Kilimanpesa. Based on the current run rate of 3,000 tons a month, the company could generate revenues of at least $2.5m with profits of around $1.5m or £1m. Operating profits for FY 2012 could go up by 32% just from inclusion of gold production from Kilimanpesa without taking into consideration the increase from the gold recovery business being indicated by the company. The company’s cash position of £4.59 m and internally generated cash flow should place the company well to exploit is current projects.

The company’s shares have further upside from here.

Vital Metals (ASX:VML) – Drill results from Kollo and Boungou look encouraging

http://vitalmetals.com.au/

· Vital Metals report significant results form RC drilling at the Kollo and Boungou South prospects in Burkina Faso. 

· The team have received results from 24 out of a 51 drilled so far.  The rest of the results should be returned before the end of February. 

· The projects lie to the South of Burkina Faso near the boarder with Ghana and lie on Birimian greenstone belts which come up through Ghana and which are known to carry significant gold mining occurrences.   

· The Markoye Fault Corridor hosts four known million ounce gold projects in Burkina Faso alone hosting 15m oz in total. 

· Kollo (60% Vital, 40% Ampella):   

6m @ 3.48 g/t gold from 90m (KRC225);

1m @ 11.78 g/t gold from 104m (KRC225).

Previous results from Kollo include: 

18m at 2.95g/t from 37m

31m at 3.19g/t from 34m

44m at 6.39g/t from 8m (including 4m at 58g/t from 24m)

· Assays for metallurgical testing are being prepared for shipment to Australia to check for processing characteristics 

· Boungou South (100% Vital): 

4m @ 4.93 g/t gold from 65m (KRC229);

3m @ 1.8 g/t gold from surface (KRC233);

5m @ 5.59 g/t gold from 31m (inc 1m @ 24.97 g/t gold from 35m, KRC233)..

· Watershed Tungsten: There is no update on the Watershed project in this announcement. JOGMEC are paying $5.4m to fund a DFS study which should be ready for completion by the year end. 

Conclusion:  Vital are preparing the Kollo prospect for potential advancement.  The drilling program should move to 50 x 50m drill spacing to give better definition to the gold resource.  Vital hopes to prepare a preliminary JORC resource of the current drill program at Kollo in these results.  Results from Vital’s 100% owned Boungou program are encouraging and could fit will with a mine plan at Kollo in time.  

*Fairfax has previously raised funds for Vital Metals.

Medusa Mining (LON:MML) – Quarterly Activities Report

· The company reported quarterly production at the Co-O mine of 16,270 oz at an average recovered grade of 8.00 g/t. 

· This is below the previous guidance of 90-100,000 for FY 2011/2012 with a revised production guidance now of 75,000 oz. 

· Cash cost for the quarter was $242 per oz giving an average production cost of $261 per oz for half year to Dec 2011 – this is higher than cash cost of $192.5 achieved in the first two calendar quarters of 2011. 

· The company realised a gold price of $1,761 per oz up by 11% over the quarter giving a FY gold price of $1,655. 

· Production in December was disrupted by a passing tropical storm and continued torrential rain over the Christmas and New Year period. 

· This disruption in combination with an accelerated development programme has realised in the lower production for the quarter and the 2011 calendar year. 

· The company are maintaining their medium term production forecast as development work continues at Co-O and the Bananghilig project comes on stream. 

· The company have a target to produce 400,000 oz per annum by the end of 2015/early 2016 – an increase to 200,000 oz will come from the Co-O expansion and the balance from a new milling capacity at the Banaghilig project. 

· The total estimated capex of Phase 3 expansion of Co-O is US$70m which will be entirely funded from the company’s cash flow. 

· Operational Update on Development at Co-O: 

· Saga Shaft: Sinking of the Saga Shaft was progressing well bar disruptions from the weather related incidents. The company have re-optimised the development programme to sink the Saga Shift directly to Level 8, by-passing Level 6. 

· This re-optimisation was based on 70% of the ore being above Level 8, successful up-grading of the Agsao shaft, increasing rate of development and continuing good underground exploration results. 

· This re-optimisation of the sinking of the Saga Shaft will mean that the high rate of development will continue until the shaft is completed resulting in more development ore being put through the mill. 

· It is anticipated that Saga Shaft will be completed and hauling from Level 8 commenced during Dec quarter 2012. 

· Mill Expansion: Construction of a new leach tank, detoxification plant and refurbishment of four small leach tanks started in February with site works for the construction of the new crushing and grinding sections to commence in Feb 2012. 

· Upgrading of the thickener and the elution circuit to commence in March 2012 and 80% of the tailings dam number 5 has been completed with 2 weeks of work remaining. 

· Bananghilig Gold Deposit and Exploration: A drilling update provided earlier in January showed continuing good results. Drilling is now focussed on infill to upgrade the resource as soon as possible to the indicated category. A new resource estimate is planned for the Sept quarter 2012. 

· Financials: The company which is debt free had total cash and cash equivalents of US$80.2m, around the same level as at the end of 30 Sept 2011. 

· The company sold 10,000 oz over the quarter at an average price of US$1,761 versus the previous quarter where they sold 15,466 oz at an average price of US$1,587. 

· $3.6 m was spent in capital works and maintenance capex over the quarter and US$7.9 m spend on general and accelerated mine development. 

Conclusion: The downgrade in production for FY 2011/2012 may disappoint in the short term. The shortfall in production is partly a result of poor weather in December and also an accelerated development programme at Co-O where development ore being put through the mill is diluting grades achieved. We continue to believe that Medusa offers a good growth profile with its development of the existing Co-O mine and production coming through from Bananghilig. Cash costs are up from a low base to US$261/oz but these should come down to US$230/oz for the full year as the company increases production in the second half. The cash cost is still very low compared to industry standards. Importantly the company continues to benefit from strong cash flows which can fund their ongoing development programme.

We are downgrading our earnings for FY 2011/2012 from 62 cents to 49.2 cents based on a lower production of 75,000 oz and higher cash cost – a downgrade of 20%. We are retaining our production forecast for next year and with our higher gold price forecast earnings are expected to rise to 76.3 cents a share. The company is currently trading on a PE of 11.4x and EV/EBITDA of 10x coming down to 7.4x and 6.5x respectively. We maintain our buy recommendation on the shares.

Mining this week: 

African Barrick Gold (LON:ABG) – Uplift in Resource at Nyanzaga

Mwana Africa* (LON:MWA) – Operations and Exploration Update

Ariana Resources* (LON:AAU) – Update on Red Rabbit and other work in Turkey

Avocet Mining (LON:AVM) - Fourth Quarter Production Results

Gem Diamonds (LON:GEMD) – Q4 2011 Trading Update

Lonmin (LON:LMI) – Q1 2012 Financial Year Production Report Show High Safety Related Stoppages

Anglo American (LON:AAL) – Q4 Production Shows Good Iron Ore Production and Diamond Production down by 24%

Metals Exploration (LON:MTL) – Update highlights start of earthworks and debt negotiations

Petropavlovsk (LON:POG) – Gold production beats expectations by 5%

Sirius Minerals – Proposed placing of £50mFirestone Diamonds (FDI LN) 10.6p, mkt cap £39.6m – Report in The Times on potential merger of Firestone 

and Stellar Diamonds

Kenmare Resources (LON:KMR) – Moma Mine Update

Vital Metals (ASX:VML) – Trading halt pending drilling results

West African Minerals (LON:WAFM) – Disposal of Ferrum Centrafrique to AXMIN

Caledonia Mining (LON:CMCL) – Production Update and 2012 Outlook for Blanket Mine

Hummingbird Resources* (LON:HUM) – 3moz required to kick start $40m feasibility study

IFM (LON:IFIL) - Quarterly report highlights recovery in sales and ferrochrome production 

Serabi Gold* (LON:SRB)  New funding, proposal to restart Palito and drilling update 

Discovery Metals (LON:DME) - Holdings in the company

Frontier Mining (LON:FML) – Completion of Acquisition of South Benkala Copper project

Goldplat (LON:GDP) 1– Good Progress on Gold Production and Exploration Projects

Sirius Minerals – SM2 Preliminary Coring Result

West African Minerals Corporation (LON:WAFM) – Directorate Change and subsidiary share buy-back