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Max Petroleum, North River Resources, Mwana Africa, Aureus Mining plus others feature in today's Fox-Davies Capital newsflash
Mining News
Aureus Mining (LON:AUE) has today announced an NI 43-101 compliant maiden reserve for its New Liberty Gold Project at its Bea Mountain mining licence, Liberia. The 873 000 oz reserve grading 3.1 g/t Au supports an open pit operation with an average annual production of approximately 123 000 oz for the first 4 years and operating cash costs of US$ 632/oz. The technical study has also decreased the previously reported strip ratio by 21 %. The NI 43 101 report has also updated Mineral Resources to 1.6 million ozs at 3.6 g/t Au, with 1.1 million of these in the Measured and Indicated categories. With its maiden reserve Aureus now plans for a feasibility study to follow in March 2012 and are aiming for first production in 2014.
Central Asia Metals (LON:CAML) has provided an operational update for the Kounrad Copper Project, Kazakhstan and announced plans to increase its ownership of the project to 100% conditional on documentation. Construction of the Project plant is now complete with capital expenditure on construction below budget. First copper production is now expected in April 2012. SaryArka Social Entrepeunerial Corporation National Compay JSC has conducted a tender process for the sale of its 40% interest in the project to a subsidiary of JSC SAT & Company and CAML has agreed to subsequently acquire the 40% in exchange for 8,616,593 shares in CAML.
Connemara Mining Company (LON:CON) has announced a joint venture agreement with private Canadian company Hendrick Resources Ltd to explore its four licences on the Wicklow/Wexford border, Ireland. The licences are known to be prospective for gold. Hendrick Resources will spend EUR 500 000 to earn a 50 % interest in the licences and has the option to spend a further EUR 500,000 to increase that interest to 75%.
Mwana Africa (LON:MWA) announced a 41% increase to its JORC compliant gold resource at the 80% owned Zani Kodo gold prospect in the north eastern region of DRC. The total combined resource in both the Indicated and Inferred category across three areas of the Zani Kodo prospect now stands at 2.01Moz based on a cut off grade of 0.5g/t. Resources in the Indicated category are located at the Kodo main area at 449koz at average grade 3.94 g/t.
North River Resources (LON:NRRP) have announced a maiden JORC compliant Resource for the Malachite Pan deposit at their Witvleir Copper Project, and an upgraded JORC compliant Resource for the Koperberg deposit at their Dordabis Copper Project. At Malachite pan, JORC Indicated Resources of 2.6 Mt at 1.36 CU and Inferred 2.4 MT at 1.1% Cu have been announced. Koperberg compliant Resources stand at Indicated 762,600 oz @1.14 Cu and Inferred 617,600 @ 0.95% Cu. Metallurgical data is planned for release shortly. Malachite Pan is the company’s priority and they aim to explore extensions to mineralisation, explore new prospects under cover and conduct an airborne magnetic survey Q1 of this year.
Sable Mining Africa (LON:SBLM) has expanded its iron ore portfolio in West Africa with the acquisition of a 123.5 km2 exploration permit in the Mount Nimba area of south-east Guinea through its 80% owned subsidiary, West Africa Exploration SA. The company are already exploring at their iron ore projects held in Liberia. The new permit is adjacent to the 600 mt Nimba iron ore project held by BHP Billiton, Newmont and Areva. Early sampling on the licence has confirmed the presence of iron mineralisation with exposed thicknesses of over 15 metres. Sable plans a reconnaissance drilling programme to confirm thickness and grade at depth to be completed before May.
Oil and Gas News
Gulfsands Petroleum (LON:GPX) Production at Block 26 continues despite Gulfsands’ withdrawal from operations, and hopefully that will mean that it will be able to benefit from the net revenues accruing to it (currently $25mm). Whether it will be able to reclaim those is uncertain, even if it has a legal entitlement to them. Given the issues with Syria, it is unsurprising that management are looking for alternative geographies to diversify the geopolitical risks. While it has the funds to be able to do so, that will take time, which if the Syrian issue drags on for much longer, will increasingly weight on its financial resources.
Max Petroleum (LON:MXP) shed some light on their recent Drilling programme in Kazakhstan. It has begun testing a second Triassic reservoir in the SAGW-1 well in the Sagiz West Field at depths between 1,243 to 1,255 metres, flowing 43 API gravity oil at a stable rate of 430 bopd over a 17-hour period. Additionally, Max has begun testing a second Jurassic reservoir in the ASK-1 well in the Asanketken Field at depths between 1,271 to 1,277 metres, flowing 36 degree API gravity oil at a stable rate of 1,005 bopd over a 24-hour period. Both wells are already connected to temporary production facilities and will be placed on long-term test production for up to 90 days. Overall, good news for Max – much better flow rates, and good quality light oil.
Tower Resources (LON:TRP) today provided a timely update on operational progress in Uganda. The Mvule-1 well is expected to spud over the next few days, i.e. between 8 and 11 February. Mobilisation of the OGEC K900 drilling rig to the Mvule-1 site has commenced, with preparation of the site nearing completion. The well is anticipated to reach a total drilled depth of about 600 metres within 14 days of spud and we expect a further update from Tower Resources once the well has spudded. This is the third and final commitment well on the Tower’s EA5 license area in Uganda and it is evaluating estimated recoverable resource potential of 80 million bbls. The Mvule-1 is highly prospective and if successful, has the potential to create a great deal of value for the Company’s shareholders, and also open up further potential from a follow-on appraisal programme. With two unsuccessful drillings in Uganda, Tower would be hoping to make it third time lucky.
Oilfield Services News
SBM Offshore (AMS:SBMO) SBM Offshore has been awarded a contract by the Ichthys LNG Project, a joint venture between INPEX (76%, the operator) and Total (24%), for the engineering, procurement, fabrication and supply of a Turret and Mooring system. This system will be integrated by the client into the Ichthys FPSO and installed offshore NW Australia. The contract also includes assistance during the integration of the Turret into the FPSO as well as during installation on the field offshore. The value of this order is around $0.5 billion. Installation of the Turret and Mooring system in the field is anticipated in mid-2015.
