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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.
Vatukoula Gold Mines, Uranium Resources, Connemara Mining, San Leon Energy, and others feature in Fox-Davies Newsflash
June 19 2012, 8:18am
Mining News
Balamara Resources Limited (ASX:BMB) advised that follow-up drilling has commenced to test for extensions to the recently discovered high-grade silver zone at its Monty Base Metals Project in Montenegro. The two-hole diamond drilling programme, at the Brskovo deposit, has been designed to test for potential extensions of the high-grade silver zone, where recent drilling returned intersections including 5.5m @ 507.7g/t Ag and 8m @ 129.7g/t Ag.
International Ferro Metals (LON:IFL) announced that the Bank of China loan facility of ZAR500million which matures on 25 June 2012 has been rolled forward by a further one year period at an interest rate of JIBAR+3.50%, subject to completion of final documentation.
Vatukoula Gold Mines PLC (LON:VGM) announced its unaudited preliminary results from its Vatukoula Gold Mine in Fiji for the third quarter ended 31 May 2012. The company mined 114703 tonnes and processed 114091 tonnes of ore at an average grade of 3.55 g/t Au to produce 11390 ounces for the quarter. This is down considerably from the 14315 ounces produce in the previous quarter and 15 684 in the quarter before that. Cash costs for the quarter were US$2034, up from US$1426 in the previous quarter. However the company expects to achieve the previously guided cash costs of approximately US$1,400 per ounce for the remainder of the fiscal year. EBITDA for the year to date is £293000. The company held cash and cash equivalents of £6.58 M at the end of the reporting period.
Connemara Mining (LON:CON), the Irish Zinc and gold exploration company has released its preliminary results for FY'11. The company finished the year with cash and equivalents of £662,018 which the company believes is sufficient to fund all proposed expenditure for the current year. Through the company's JV agreements extensive work will be carried out on the Wicklow/Wexford gold ground and on the Oldcastle block at no cost to the company with current funds sufficient for continued work at Stonepark, with 75% JV partner Teck.
Uranium Resources (LON:URA) has released further encouraging drill results from its Mtonya uranium project. Three of the holes have intercepted new roll fronts within "Tier 1" reduced beds, with intercepts of 397ppm U3O8 over 1.0 m at 170.4m, 460 ppm eU3O8 over 4.0m at 170.4 m and 329 ppm eU3O8 over 3.8m at 73.7 m. The company classifies Tier 1 as from surface to 200m and believes these latest results are suitable for in-situ recovery. To date the Company has drilled 5,400m of its planned 20,000m 2012 drilling programme with three rigs on site and a fourth expected in mid-July. The Company expects it will then have sufficient data to estimate a maiden resource. Mtonya is a classic sandstone-hosted roll-front deposit which the Company believe is amenable to in-situ leaching. It is located 60km south of Uranium One's Nyota project (previously owned by Mantra Resources).
Polo Resources (LON:POL), the natural resource investment company has released an updated resource for its 90% owned Nimini - Komahun Gold Project in Sierra Leone. The new CIM standard resource has 521Koz in Indicated at 4.59g/t and 263koz Inferred at 3.64g/t. The new independent estimate by SGS Canada is based on the results of 68 new diamond drill holes totalling 11,528m that have been drilled since the previous resource estimation undertaken in 2008 on behalf of the previous owners AXMIN. A further 20km of drilling is currently underway, with a third rig on site shortly designed to infill the current inferred resource and extend the indicated resource. A US$13m pre-feasibility study is scheduled for completion in 1Q'13 which will focus on the 86% of the current resource which is in primary mineralisation and look at developing an underground mine and processing plant. A final draft of the Environmental and Social Impact Assessment for Komahun (including the Community Development Action Plan) has been completed and the process for the grant of the Environmental Licence has been initiated. With a large part of the license unexplored, the company ran a VTEM survey across the area which has highlighted 9 new high priority targets which offer considerable upside to the project. This looks like an exciting project and its development marks a slight change in focus for the company, from pure investment to more hands on management and we will continue to keep a close eye on its development.
Oil & Gas News
San Leon (LON:SLE) San Leon fall yesterday on the back of news that Exxon is pulling out of Poland is a little perplexing as Exxon was in the Lublin basin in the south of the country, and San Leon is in the Baltic and Carboniferous basins in the northern part of the country, and there is no read across at all; those encouraging read-across are either being disingenuous, or just don't know their onions. Tapping in to shale gas commercially requires a technical solution, and the Company, and others such as 3Legs also in today's news, are still evaluating their drilling results. We believe that San Leon, with its focus on the technology of shale gas production, has the leading edge here and the recent fall in the share price is an excellent opportunity for investors to increase their exposure to the stock.
3Legs Resources (LON:3LEG) Today's news highlights the progress being made on advancing the Company's programme. While significant work still needs to be undertaken on both the Baltic Basin and Southern Poland concessions, the combined experience of the Company's core team, along with the support of ConocoPhillips in its Baltic concessions, puts 3Legs in a strong position going into 2H 2012. In the news:
• Baltic Basin concessions; Further testing on Lebien LE-2H and Warblino LE-1H commencing in July 2012, Drilling expected to commence on the Lebork concession in October 2012
• Southern Poland concessions; Seismic data acquired fully processed and currently being interpreted
• Personnel; New Engineer Manager appointed
Serica Energy (LON:SQZ) The Company continues to make rapid progress at its Central Luderitz Basin, Namibia and has completed the 3D seismic acquisition obligation of 1500 sq/km with-in six months of awarding the block which is however required during the first four year period of the licence. This survey is one of the largest to be undertaken in Namibia; results are expected by year end. Presence of BP (35% WI), further lends confidence about the prospectivity of the block. Expect positive movements today.In this news:
• Serica was formally awarded the rights to a 17,400 square kilometre licence in the Central Luderitz Basin on 19 December 2011.
• In March the Company announced that it had reached agreement with BP under which BP would earn a 30% interest in the license by meeting the full cost of a 4,150 square kilometer 3D seismic acquisition programme.
• Serica retains a 55% interest in the license and is Operator of the license.
• In addition to paying the full cost of the survey BP has an option to acquire a further 37.5% of the license by drilling and testing a well.
Zhaikmunai (LON:ZKM) The Well #116 on the north-eastern part of Chinarevskoye field in Kazakhstan is flowing crude oil at 945 BPd - meeting management's expectations. The upbeat results from Well #116 confirms success of Zhaikmunai's new side-tracking and well stimulation technology which now can be deployed for future producing wells resulting in higher recovery rates.
