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Fox-Davies Capital

Fox-Davies Capital specialises in assisting international resource companies to gain access to the UK, European and North American capital markets and has a substantial background in emerging markets particularly in Africa, Asia, Russia and the CIS.


EMED Mining, Stellar Diamonds and Talvivaara Mining feature in Fox-Davies Newsflash

January 16 2013, 8:14am

Daily Mining Monitor   

EMED Mining (LON:EMED) announced its quarterly operational update. It maintains its target of establishing an initial base case production rate of 37,000 tonnes per annum copper-in-concentrate at the end of 2015, based on EMED’s target of commencing production in 2014 with the start of plant construction in 2013. Significant expansion plans are also being formulated as also an ambitious exploration programme focused on re-establishing the Rio Tinto Copper Project as mining field with several mines operating around a central processing plant. As at 31 December 2012, we had provided all documents requested by the authorities for approval of key permits to proceed, we updated all capital and operating cost estimates for updating the NI-43-101 Technical Report. Since the end of the December quarter, EMED established the insurance for the tailings deposit after agreement with the regulators and we established the Social Licence Agreement with all seven local municipalities. Currently, it awaits regulatory approvals required for triggering the project resulting from a lengthy permitting process, the work for which is largely completed. EMED are focused on commencing construction in H2-2013, by having attained requisite permits in the recently agreed sequence during the first two quarters of 2013.

In Slovakia, the Detva Gold Project focuses on community consultation as part of the processing of its application for the regulatory approval of its Mining Lease Area, which has already been approved at the District Level and will now be referred the national regulator.

In Andalucia, Spain, regulatory approval is also advancing for the Company's plans to test the recoverability of significant precious metals mineralisation contained in waste material on the Rio Tinto property. This sub-project is in joint venture with Andalucian investment group, Rumbo 5 Cero, which is also a substantial shareholder of EMED Mining. Initial plans will be soon issued for public comment.

Stellar Diamonds (LON:STEL) has renewed its Droujba diamond exploration licence in Guinea which hosts a 3 million carat (JORC) resource. The license contains the Droujba kimberlite pipe and 5km long Katcha kimberlite dyke has been renewed for a further two years to 26 December 2014. Stellar has relinquished 14km2 of ground not considered by the Company to be prospective, reducing the licence area to 7km2. Three further exploration licences covering 100km2 and located to the immediate west of Droujba are currently in the process of renewal for a period of two years.

Talvivaara Mining (LON:TALV) has issued a very downbeat operational update which states that whilst metal production stabilized after the gypsum pond leakage in November, the water balance situation althought being resolved, continues to be challenging. The leakage has cost EUR 13m to date and the Company expects that the capital expenditure required for the water management improvements to amount to approximately EUR 17 million, largely incurred in 2013. Total Nickel production was 2,317t in 4Q’12 and 12,916t for FY’12. Sustainable solutions to the water balance issues being evaluated by a special task force with the initial measures being implemented. However, Bioheapleaching has continued to suffer from the excess water in circulation that has affected the process since the spring of 2012. Talvivaara's ore production has been suspended since September 2012 due to the water balance situation and the Company anticipates re-commencing mining of new ore by the end of June 2013 once the main part of the Kuusilampi open pit has been de-watered. Waste stripping continues and part of the mining fleet is also being used in reclaiming ore from the primary heaps. However, co-operation consultations that may lead to temporary lay-off of a maximum of 230 employees for up to 90 days are to start on 17 January. Following Pekka Perä's return as CEO in November 2012, further management changes will be taking effect on 16 January. These include Pertti Pekkala, formerly General Manager, Research and Development, is appointed Chief Production Officer (Metals Recovery), Kari Vyhtinen, formerly Chief Investment Officer, is appointed Chief Mining Officer, Mikko Korteniemi, formerly Chief Production Officer (Metals Recovery), is appointed Chief Maintenance Officer with responsibility for maintenance, procurement and warehousing and Jari Voutilainen, formerly Chief Mining Officer, is appointed General Manager, Water Management with full-time responsibility for water management. As previously announced Talvivaara is undertaking an assessment of a range of funding options, including debt, convertible bonds, royalty streams and equity, in order to secure its financial flexibility and a sufficient level of liquidity.



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