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Proactive weekly mining news – Goldplat, Strategic Minerals, Metal Tiger…

Published: 07:00 22 Apr 2017 BST

truck driving in a mine

Goldplat plc (LON:GDP) overcame difficulties at its Ghanaian operations to post another set of solid quarterly production figures, compounding what has been a strong year of trading so far for the gold producer.

Overall, Goldplat produced 6,746oz in its third quarter, taking its total for the nine months of its year so far to just over 28,000oz and keeping it on course to meet the full-year target of 45,000oz.

The firm managed to sell 9,260oz in the period though, mainly due to it offloading a large chunk – almost 5,500oz – of gold concentrate as a result of an outstanding licence which was received towards the end of the second quarter.

There was some more good news as its Goldplat Recovery Ghana business signed its first agreement with a South American miner and expects to take delivery of some 240 tonnes of material in the coming quarter.

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In other news, all guns are firing at Aim-listed junior miner Strategic Minerals Plc (LON:SML)

The last quarter saw record local sales at its iron ore tailings plan at Cobre in New Mexico, which is helping to funding exploration programmes for tin and tungsten in Cornwall and cobalt in Australia.

Strategic also recently signed up a new client at Cobre that it anticipates will double sales over the current year.

As a result, the company is now in a ‘cash generative’ phase said chairman Alan Broome and set to perform strongly. That will mean a profitable 2017, he added.

Elsewhere, Metal Tiger PLC (LON:MTR) told investors its private placement offering raised even more than expected, with gross proceeds of £4.85mln received by yesterday’s closing date.

The fundraise, which is the largest by the natural resources investor to date, included a total of £4.39mln raised through Sprott Capital – above the £4.29mln targeted – while a further £460,000 was raised through a placing and subscription of shares by the company.

The net proceeds from the offering will be used to fund Metal’s portion of its commitment to the 2017 budget for its joint venture project with Australian partner MOD Resources in the Kalahari Copper Belt in Botswana.

The first phase of road works at Amur Minerals Corporation’s (LON:AMC)  flagship Kun-Manie nickel project in Far East Russia is scheduled to get underway shortly.

The miner has now received topographic and hydrological information, which it will use to draw up the planned 320km long route that will link the mine to the BAM rail line.

Twelve Russian firms that could possibly carry out the first phase of development have already been screened, and Amur has asked two of those to provide a bid for the engineering and design work of the access road.

European Metals Holdings Ltd (LON:EMH) hailed a pre-feasibility study at Cinovec in the Czech Republic as confirmation it can be one of the world’s lowest cost hard rock lithium carbonate deposits.

On a study based on around 10% of the deposit, the report indicated Cinovec can produce 20,800 tonnes of lithium carbonate annually for 21 years at a cost of US$3,483 per tonne.

Total capital cost would be US$393mln, with the return over the mine’s life over and above this outlay (net present value) estimated at US$540mln.

On Thursday, Kibo Mining PLC (LON:KIBO) announced a partnership with Mbeya Cement Company, a LaFarge subsidiary in Tanzania, as the AIM quoted firm moves forward with the Mbeya Coal to Power Project (MCPP).

The junior miner said the deal will establish a strategic regional collaboration and reciprocal supply of materials agreement.

A memorandum of understanding sees the companies working together with a view to definitive deals – including an exclusive agreement for Kibo to supply Mbeya with coal. New arrangements are also anticipated relating to limestone, fly ash, and electricity.

It is also envisaged that Mbeya Cement will be a supplier to the mine development and contractors.

And finally, higher production at the New Luika gold mine in Tanzania boosted Shanta Gold Limited's (LON:SHG) margins in its latest quarter.

Gold produced rose 7% to 20,416 ounces compared to the preceding three months, while cash generated was US$6.6mln.

Underground mining at New Luika also got underway with 15,171 tonnes of underground ore processed at a grade of 10.61 g/t.

Commercial production is on schedule for the end of this quarter said Toby Bradbury, chief executive.

Gold sales totalled 23.3koz in the quarter at an average gold price $1,249/oz.

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