Mining News
African Barrick Gold plc (LON:ABG) announced an uplift to the previously declared Mineral Resource estimate for the Nyanzaga Project, with the addition of the Kilimani zone. The in-pit resource has been increased by a further 0.5Moz and is now in excess of 4.6Moz Au, consisting of 3.75Moz at 1.42g/t Au Indicated and 0.85Moz at 1.81g/t Au Inferred.
Altona Energy Plc (LON:ANR) announced that it has entered into a Memorandum of Understanding with Maison Global, an established EPC & Project Management provider for clean energy projects in the Peoples' Republic of China. The Agreement is to collaborate in the business development of project opportunities in the area of coal and biomass gasification in China for the production of transportation fuels, energy products and power.
Berkeley Mineral Resources Plc (LON:BMR) announced that the Zambian Competition and Consumer Protection Commission ("CCPC") has issued a final conditional authorisation for the acquisition of the Kabwe Mine Assets of ZCCM-Investments Holdings Plc ("ZCCM-IH") by Alberg Mining and Mineral Exploration Limited ("Alberg") and the subsequent assignment of the relevant Mining Licence and Mining Assets to Enviro Processing Ltd ("EPL"), BMR's wholly owned Zambian subsidiary. The Mining Assets include all the underground lead and zinc ore bodies and any further mineral tailings stockpiles at the former Kabwe mine in Zambia in addition to the tailings stockpiles it already holds. In consideration for the acquisition, BMR is paying Dorset Solutions Limited ("Dorset"), the holding company of Alberg, GBP1M in cash and the issuance of 70 million Ordinary Shares in the Company (which have a market value of GBP3.2m at the closing price on 2 April 2012). The Company is also paying ZCCM-IH US$3m in cash. BMR has received a technical review of the potential underground ore resources at the Kabwe mine covered by the Large Scale Mining Licence and established a tonnage potential for the main selected ore bodies at 50,975,159 tonnes at 3.12% Zn and 0.89% Pb.
Mariana Resources Ltd (LON:MARL) announced the results of a resampling programme at its Las Calandrias gold-silver project located in the Santa Cruz mineral district in southern Argentina. Re-sampling of 15 of 40 holes has discovered new zones of vein/stockwork gold- silver mineralisation in silicified volcaniclastics at Calandria Sur. The mineralisation extends laterally and below the NI 43-101 compliant initial resource at the rhyolite-hosted bulk tonnage Calandria Sur prospect. Best gold intersections in the volcaniclastics lateral to the resource in re- sampled holes, previously considered low priority, include: 52m @ 0.5 g/t Au from 8m, 7m @ 0.9 g/t Au from 17m, and 8m @ 1.0 g/t Au from 15m & 26m @ 0.6 g/t Au from 29m.
Uranium Resources (LON:URA) has raised £3.93m through the placing of 163.75k shares at 2.4p, a 20% discount to yesterday's closing price. Strategic Investor Estes was the primary subscriber and now holds approximately 56.0% of the enlarged issued share capital of the Company. As a result, certain protections for minority shareholders under the articles of association will cease to apply, including the Mandatory Bid Provision on any further consolidation of control.
Cluff Gold (LON:CLF) has announced that Algy Cluff will step down as Non-Executive Chairman at the Company's next Annual General Meeting to assume a Chief Executive role in a new natural resources company and John McGloin, previously Head of Mining at Collins Stewart, will be appointed as Executive Chairman.
URU Metals (LON:URU) has released an update on its SA nickel JV. Phase 1 drilling results from both the Burgersfort and Zebediela nickel sulphide projects have now been completed and confirm large open pit disseminated sulphide nickel resources. These results mean that URU Metals has now satisfied the terms of its JV agreement and has a 50% interest. The JV partners have now has engaged MSA Group to complete a Preliminary Economic Assessment on the Zebediela Nickel Project and continue metallurgical test work at Zebediela for a total commitment of US$685k.
Premier Management Holdings (LON:PGR) has changed its name to Premier Gold Resources plc to reflect the Company's new strategy of gold exploration and development in Central Asia.
Anglo Asian Mining (LON:AAZ) has announced a 50% Resource Increase at Gedabek Gold/Copper Mine in the Republic of Azerbaijan. The total JORC resource, including Inferred resources is now 48,138,979t @ 0.825 g/t Au for 1,276,422 oz Au (a 61% increase); 0.197 % Cu for 94,890 t (a 93% increase); and 6.66 g/t Ag for 10,305,653 oz (a 36% increase) at a cut-off grade of 0.3 g/t of gold. Drilling will continue south and southeast of the Gedabek Mineral Deposit, with a further 3,420 m of drilling already undertaken since completion of the JORC mineral resource drilling programme. The Company expects to release a JORC ore reserves estimate in 2H'12 and a technical and economic feasibility of future mineral processing alternatives are being assessed to increase the gold, copper and silver recovery and economics of Gedabek.
Aureus Mining (LON:AUE) has released the results of its forty hole (9,143m) infill drilling programme at New Liberty, Liberia. The results demonstrate that there is no gap in the mineralised system between Kinjor and Marvoeareas and the deeper drilling in the Latiff zone indicates that there is underground potential once the open pit reserve has been mined. The Company expects that a new NI 43-101 compliant resource estimate will be published as part of the Definitive Feasibility Study during this quarter. This will also be incorporated into a reserve update for the New Liberty open pit. Highlights of the drilling between the Kinjor and Marvoe areas, include 9.6g/t over 31m and 8.6g/t over 6m. Deeper drilling in the Latiff zone at depths of approximately 200 metres below surface returned high-grade intercepts of 6.4 g/t over 12 metres and 4.0 g/t over 14 metres.
Nord Gold (NORD) has signed a 3 year 11 billion roubles (c.US$ 374 million) loan with Sberbank, the largest financial institution in Russia. The loan has a 21month grace period and the Company intends to enter into a cross-currency swap to exchange the loan's currency into US Dollars to ensure it matches with the Company's functional currency. The proceeds of the facility have been used to repay Nordgold's outstanding debt to OAO Severstal and its affiliates of approximately US$ 360 million. This will complete all debt arrangements between Nordgold and Severstal and reflects the formal separation of the two companies announced on 14 March 2012. Nordgold will have a net debt of less than US$200 million and aims to finance its capital expenditure and dividend programmes through its own cashflow.
Sunkar Resources (LON:SKR) which operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan has issued an operational update after it suspended its BFS and breached banking covenants last year. Following receipt of US$10 million from Sun Avenue Partners Corp, the Company has issued US$10 million 10% convertible loan notes and has made an application for the Kazakhstan government to issue a waiver for the Loan Notes to be converted to ordinary shares. The Company, with the assistance of SAPC, continues to negotiate with ATF Bank Kazakhstan to restructure the existing bank loans to correct the breach in banking covenants and expects a further announcement to be made in due course. The Company made no indication of the progress of the BFS, other than that the last remaining major element is the Environmental Impact Study, which will include public hearings in Aktobe. However, the Company has signed contracts for shipments of 1,824t of DAR, including orders on subsidized terms to Kazakh farmers and some fully prepaid orders to Russian farmers. Prepayments to date amount to US$49,000. Actual volume shipped since 19 March is 510 tonnes. The Company also anticipates obtaining Russian state certification for the Chilisai phosphate flour, which would allow unrestricted sales of the flour in Russia. During March, both mills at Chilisai milling and loading complex have been test run after an idle period with 20 operating and maintenance staff re-employed. The Company expects that both mills will be running at full rate by the end of April.
Oil & Gas News
GulfsandsPetroleum (LON:GPX)- Syria Still Main Focus: As would be expected, the majority of today's announcement focuses on Syria, and the steps management is taking to mitigate the impact of troubles on its own staff and operations. Still, with such a fragmented outlook and 98% of its reserves in the country, there is likely to be a considerable period of retrenchment as Syria's Government allegedly continues to plumb new depths. Then, there is the uncertainty of the landscape post a regime change (which itself is now a certainty). With a cash pile of ~$120mm, there is still significant flexibility afforded to the Company, but to be adequately reflected in the share price, this will have to be articulated clearly and quickly. Today we increase our geopolitical risk weighting for Syria, which has a knock on impact on our valuation. Our fair value for GPX is now 200p but we acknowledge that there may well be a further deterioration in the situation in Syria. As a result, we are downgrading to HOLD, but recommend that investors monitor the situation continually. In this news:
•Maintain presence in Syria
•Consolidate position in Tunisia
•Build another viable non-Syrian business
•Group 2P working interest reserves up by 34% to 76.3mm boe (2010: 56.9mm boe) of which 74.5mm boe (2010: 53.6mm boe) relates to its PSC in Syria
•Group working interest production down by 17% to 8,542boepd (2010: 10,308boepd)
•Cash from operating activities up by 34% to $94.3 million (2010: $70.2 million)
•Six exploration wells drilled in Block 26 in Syria resulting in three discoveries
•Free cash balances at year-end of $124.2 million (2010: $80.6 million)
•Profit after tax up by 23% to $55.1 million (2010: $44.7 million)
•Further part-disposal of US business realising aggregate cash of $11.0 million
•Potentially commercial onshore oil discovery in Tunisia
Cairn Energy (LON:CNE) - Agora to Provide a Central Location for Cairn Investors: Today's acquisition brings much needed diversification to Cairn's portfolio and increases the near-term hole created in its portfolio. Additionally, with a near-term development and appraisal portfolio, the longer-term outlook is bolstered, as cash flow is now more likely. We would expect the etter balance in the portfolio to be reflected in today's share price. In this news:
•Acquisition cost (2C basis) of $20/bbl
•Lower risk appraisal and development assets
o9 wells in 2012, 8 firm & 1 contingent
•15% stake in the Catcher & 20% interest in the Tybalt
ofurther drilling programmes planned this year
•22mm boe in 2C contingent resources
•49mm boe prospective resource
oheld through 10-30% non-operated interests in 11 licences.
Solo Oil (LON:SOLO) - Drilling Update in Canada: Early results from the North Airport well indicating potential for natural gas is a boost for the Company as it seeks additional gas reserves to support the huge Ausable Enhanced Oil Recovery (EOR) scheme. Recovery at Ausable depends on pressure maintenance and gas recycling so the availability of further gas sources bodes well for Solo as it looks to fully unlock the value within Ausable. In the news:
•The North Airport well reached total depth of 608 metres
•Open-hole electric logging indicate potential for natural gas in two zones.
•Currently trying to better determine both net pay and production potential
•Gas and any gas liquids will be used to further enhance the gas recycle and EOR program at the Ausable reef.
Heritage Oil (LON:HOIL)- Progress at Miran; positive for the Company: Today's news provides further evidence as to the prospectivity of the Miran structure, in that with each new well the reserves are improving. As we highlighted in our recent note (2nd April 2012), the key to unlocking the value created by the Company's success at the drill bit is to progress with the monetisation of the asset. This news should allow investors to be encouraged about the outlook for the asset. We are reiterating our 315p price target and BUY recommendation. In the news:
•Testing of a reservoir interval above the main Jurassic reservoir resulted in a flow of up to 17.5 MMscf/d of dry gas
•Reservoir interval tested is separate from the underlying main Jurassic gas bearing reservoir tested in the Miran West-2 well
•Following the test, drilling continues to the main Jurassic targets
•Drilling is expected to be completed within the next month.
Oilfield Services News
No appropriate news this morning.