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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.


Archipelago Resources, Bushveld Minerals, Oracle Coalfields, Sula Iron & Gold and others feature in Fox-Davies Newsflash

January 18 2013, 8:41am

Daily Mining Monitor

Bushveld Minerals (LON:BMN) issued an operations update on its iron ore project in the Limpopo Province, South Africa.

Further 926m drilling completed on the vanadium-rich Main Magnetite Layer ("MML") targeting increase confidence in current resource and size along strike.

Results confirm consistency of the MML mineralisation and grades with previously reported results, along strike and down to depth

Resource upgrade for both MMl and P-Q zone expected later in 1Q’13

Company in dispute with Afro Multi Minerals (Proprietary) over transferring over Prospecting Right 438 to Bushveld.

Company maintains view expressed in the admission document action is without merit and license is not considered material to the Group strategy or will impact goal of reaching 1bt resource.

FD Comment: We are entering a busy period for the company as it aims to prove a resource in excess of 1bt. The pending resource upgrades should give us an indication of how close the company is to achieving this. The company stated in its interims in November that it also expected the release of scoping studies for infrastructure (rail, port, water and power), market, mining, processing, environmental and social impact studies by the end of this quarter.

Praetorian Resources (LON:PRAE) has released an updated Net Asset Value.

Total NAV £20.06m, NAV per share 0.4005p, Shares in Issue 50,093,901

Trading at 1.12% premium to NAV

Besra Gold Inc £2.5m (12.4%), Polar Star Mining Corp £2.4m (12.0%), Galileo Resources plc  £2.3m (11.4%), Maya Gold & Silver Inc £2.3m (11.4%), A Cap Resources Limited £1.8m (9.0%), Equatorial Palm Oil plc £1.5m (7.5%), Minor positions  £6.3m (31.3%) and Cash £1m (5.0%).

Issued a two page summary of portfolio on website

FD Comment: Somewhat surprisingly Praetorian is trading at a slight premium to its NAV, whereas most Investment companies trade at a discount to NAV. Our nearest peer comparable for Praetorian is Polo Resources which is trading at a 24% discount to NAV. This may reflect the relatively short time Praetorian has been operational and the great expectation on how the experienced team will perform.

Oracle Coalfields (LON:ORCP) has raised ~ £0.93m (before expenses).

Placed 62,282,707 new ordinary shares at 1.5p per share

Raised £26,667 through issuing 133,334 shares at 2p per share via its £2million Equity Line Facility with Dutchess Opportunity Cayman Fund Ltd.

Following Admission enlarged issued share capital of 278,293,707 ordinary shares

Funds to be used to advance the pre-development work and the local CSR programme.

FD Comment: Oracle is aiming to develop a lignite project in the south-eastern desert of the Sindh Province, Pakistan to supply local industry and power generation.  We believe this is a tough project to fund outside Pakistan and the company has done well to get this funding away.

Conroy Gold & Natural Resources (LON:CGNR) has released the results of the Metallurgical test work by Goldfields Ltd at Clontibret gold project in Co. Monaghan, Ireland

Gold Flotation Recovery 90%

Sulphur Grade in Concentrate 8%  

Based on a US$1,372/oz gold price this would raise the scoping study IRR from 49.4% to over 55% and NPV8% from US$72.3m to US$90m

Laboratory Flotation Full Locked Cycle Tests Positive

FD Comment: The results are better than included in the scoping study with the sulphur grade originally modelled at 12% which should lower operating costs. The figures used are based on the updated scoping study published in December, 2011 which doubled the planned production rate to 800kt pa and increased capex to US$77.8m and reduced operating costs by 30%. The company is currently fine tuning the results, but we believethe Company is restricted by a lack of cash having raised £403,860 in May last year the company had € 238,647 in cash and equivalents at the end of November, 2012.

Balamara Resources (ASX:BMB) announced that it has submitted the final tender document for the world-class Togo Phosphate Project in West Africa. The documents were lodged by agents for the Company in Lome, Togo, on 17 January and Balamara understands that the Review Committee will be meeting immediately to consider the applications.

FD Comment: Balamara is one of three remaining parties short-listed for this Tier One project, and the Company has assembled a strong consortium of partners for the tender process, including one of the largest investment banks in the world. Based on the experience and capabilities of the consortium members, as well as the quality and depth of its proposal to the Togo Government, the Company remains confident about its prospects in the final selection process.

Alba Mineral Resources PLC (LON:ALBA) announced that FOSSE Investments Limited, the joint venture partner in Mauritania, has agreed to take Ordinary Shares in Alba in satisfaction of part of the balance due by Alba to the joint venture. Alba will satisfy £18,000 of the debt due to their joint venture partner by the issue of 4,500,000 new Ordinary Shares at a price of 0.4p per share. Application will be made for the New Shares to be admitted to trading on AIM. It is expected that admission of the New Shares will become effective on 23 January 2013.

Archipelago Resources PLC (LON:AR.) announced exceptional drill results from the Jipang prospect, being a further extension to the existing high grade Kopra deposit located approximately 3km from its 95% owned Toka Tindung Mine in North Sulawesi, Indonesia. For the year ended 31 December 2012, Archipelago drilled 581 holes totalling 82,391m as part of it’s targeted near site exploration campaign. This intercepted a number of wide, up to 11m high grade intercepts at depths below 150m. It is anticipated that these results will contribute to an updated Resource and Reserve Statement, which is expected to be released in Q1 2013.

Sula Iron and Gold PLC (LON:SULA) announced an exploration update at its 153 sq km iron ore and gold licence area in Sierra Leone, which is contiguous to African Minerals' operational Tonkolili iron mine which hosts a 12.8Bt resource. Detailed mapping and reconnaissance work at the flagship iron and gold project in Sierra Leone has returned highly positive results, which confirm outcropping banded iron formation over a 3.1km strike, and advances the project to a drill ready status. From here the company plans to implement a 2,000 metre drilling programme and is due to sign a drill contract shortly to commence work. The drilling work will further test the strike continuity, thickness and DSO grade potential of the Project with the intention of delineating a JORC compliant resource in terms of the iron at the Project in 2013. In addition, there is the gold prospectivity of the Dalakuru and Lagunda target areas where the analysis of past drilling data returned best intersections of 8.72m @ 10.46 g/t gold.

Golden Rim Resources (ASX:GMR) announced further assays from its recent diamond and reverse circulation drilling have been received. New intersections include:

10.8m at 1.4 g/t gold from 297m (BDH027)

3m at 3.2 g/t gold from 268m (BDH027)

6m at 1.5 g/t gold from 141m (BRC252)

8m at 1.1 g/t gold from 109m (BRC255) (includes 1m with no sample)

1m at 8.3 g/t gold from 7m (BRC253).

FD Comment: These results confirm further depth extensions to the Netiana Lodes to 240m below surface and the mineralisation remains open at depth. Drilling has also increased the strike by an additional 150m to the north east. A preliminary JORC compliant resource calculation by Mining Plus is expected by the end of January 2013.



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