Peak Resources the new Lynas Corporation?

Peak has delivered a strong of very promising results from the project recently, which followed some encouraging preliminary metallurgical testwork.

Worth noting, the project has started to draw comparisons to Lynas Corporations' (ASX: LYC) Mt Weld, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite.

This week Peak announced some more broad intersections at the project, which will provide further support to the maiden JORC Resource for the the Southern Rare Earth and South West Alluvial Zones, which is on schedule to delivery to the market in the March quarter 2012 - to be completed by Hellman and Schofield.

Highlights from nine holes at the Southern Rare Earth Zone include:

- 49 metres at 5.08% REO from surface; and 95 metres at 5.06% REO from 52 metres (in one hole);
- 32 metres at 5.06% REO from surface;
- 34 metres at 5.03% REO from surface; and
- 120 metres at 3.52% REO from surface.

Across at the Northern Zone, peak results from five holes include:

- 56 metres at 0.48% Nb2O5, 137ppm Ta2O5 and 1.28% REO from surface; and
- 34 metres at 22.1% phosphate from 28 metres.

Adding some interest to a potential new area, a drill hole in the north east of the Southern Rare Earth Zone, 650 metres to the south of drilling in the Northern Zone,  returned high grade niobium; 8 metres at 1.31% Nb2O5 and 179ppm Ta2O5 from 8 metres.

Assays are still pending in the area for an additional 14 holes of the reconnaissance program.


Metallurgical testwork

Non–optimised initial acid leach test work on a composite sample of weathered mineralisation leaches 88% of rare earths, with further leach test work now having been prioritised.

This work is to evaluate the possibility of a relatively simple processing route to produce a high grade rare earth concentrate for this higher grade, near surface portion of the Ngualla rare earth mineralisation.

At the time Peak said that simple wet table characterisation of primary fresh rock rare earth mineralisation produces positive beneficiation results in preliminary sighter tests.

The company remains well funded with $5.7 million cash in the bank at the end of 2011.

- Validation and verification of the previously developed extraction circuit;
- Independent scoping study review;
- Optimisation of the product circuit to reflect the new emphasis on the heavy rare earths, dysprosium and yttrium, with by-product values from zirconium and niobium;
- Pre-feasibility study;
- Design of the revised pilot plant; and
- Working capital.

The first production sized well is to be drilled in the vicinity of DRC-01, which intersected averages of 713 mg/L lithium (Li), 9,000 mg/L potassium (K), and 543 mg/L boron (B) over the 120 metre drill hole depth, first announced in September 2010. The company said the production well is strategically located to access higher grade portions of the resource,  potentially allowing higher grades during the initial production years.

"Initiating our first production sized well only 17 months after the discovery hole at Diablillos was announced, in our opinion, demonstrates the company’s strategy to fast track the development of the project,” said Rodinia president and CEO, William Randall.

"This marks yet another important step towards completing the work required for a feasibility study.  This first production well, along with the majority of the subsequent evaluation work to follow, will be designed and executed in a manner such that they can also be incorporated into the commercial production facility.

"This is anticipated to save us time and capital as we continue to move towards production.”

Indeed, Rodinia said the drill site is located within the anticipated commercial production well field. The well will target the two largest aquifers modeled in the resource estimate, in addition to being located in one of the deepest portions of the basin.

The production well is designed to test the range of pumping rates, well efficiencies and drawdown/recharge characteristics of the middle and lower aquifers during a long-term, high-volume pump test.

The proposed pump test will proceed for 10-15 days, the company said, and will provide engineering data for a feasibility study.

Last November, Rodinia announces the results of a preliminary economic assessment (PEA) for its Salar de Diablillos project, indicating a potentially low cost operation with a net present value as high as US$964 million, and a mine life of 20 plus years.

The report outlined two production scenarios, the first being an operation producing 15,000 tonnes of lithium carbonate and around 51,000 tonnes of potash per year, and the second producing an increased 25,000 tonnes of lithium carbonate and 85,000 tonnes of potash per year.

The first scenario returned a pre-tax net present value of US$561 million, and an internal rate of return (IRR) of 34 percent at an eight percent discount rate and a lithium carbonate price of US$5,500, while the second alternative projected a much higher net present value of US$964 million, along with a pre-tax IRR of 36 percent.

Total initial capital costs were estimated at $144 million, and $220 million, with years to payback at 1.6 and 1.5 years, respectively. Capital costs were kept low due to an initial unlined evaporation pond, and a planned lithium carbonate plant offsite at an industrial park in Pocitos, with infrastructure, natural gas and power already in place.

Initial capital costs also excluded closure costs and sustaining capital, which are estimated at roughly $80 million.

The company's management sees the first option as the base case scenario, with the potential to produce as much as 25,000 tonnes per year in the first stage in the event that further offtake agreements are secured.

Rodinia, which has an existing strategic investment secured from China's largest lithium-ion battery materials provider Shanshan, said it is already in discussions with multiple groups on this front.

Operating costs per tonne excluding potash and boric acid credits were projected as low as $1,519 per tonne of battery-grade lithium carbonate for the base case, and $1,486 per tonne for the 25,000 tonne per year alternative.

However, including by-product credits that exceed the costs to produce lithium carbonate, combined operating costs were brought below zero, at negative $703 per tonne for the base case scenario. This means lithium carbonate could be stockpiled, and the company would still make money from potash and boric acid revenue.

The proposed operation for Diablillos will use conventional evaporation-based processing, similar to other lithium brine projects (considered the more economical and environmentally friendly process as opposed to hard rock), as brine is to be pumped from subterranean aquifers by a series of production wells to an initial unlined evaporation pond to increase concentration.

High grades and recovery rates, favourable lithologies, low magnesium ratios and high specific yield rates are required to ensure enough contained brine will drain out of a formation by pumping.

The Salar lithium recovery process is a combination of solar evaporation steps, in-field brine treatment, by product potash and boric acid recovery and chemical processing to produce lithium carbonate, resulting in a high lithium recovery of approximately 65 percent.

The process contemplates a series of six ponds from largest to smallest, where the largest is used to bring brine to saturation and is designed to be unlined reducing the capital cost of pond construction, the company said. Rodinia also said there is natural clay occurring near Diablillos that will allow for the construction of the initial pond, offering cost savings over lined ponds.

The Salar de Diablillos property, which rests about 145 kilometres southwest of the city of Salta, has a recoverable inferred brine resource of 2.8 million tonnes lithium carbonate equivalent from an in-situ inferred brine resource of 4.9 million tonnes lithium carbonate equivalent.

In addition to its Argentina project, Rodinia holds 100 percent mineral rights to approximately 70,000 acres in Nevada's lithium-rich Clayton Valley in Esmeralda County, placing it in a prime position to benefit from increasing lithium demand.

Lithium's characteristics make it suitable for a number of uses, but for many years, the metal was used mainly in the production of ceramics, glass and as a strong aluminum alloy. However, demand for lithium has since boomed due to the advent of the rechargeable lithium-ion battery, used in anything from watches and cell phones, to BlackBerrys, iPods and for electric vehicles, power tools and military equipment.

Throughout 2012, Rodinia will focus on continuing to develop the Diablillos project by completing additional evaluation work and advancing through feasibility study.

Shares of Rodinia rose more than two percent Tuesday in early morning trade, to 23.5 cents as of 9:34am ET.

As a general rule, the most successful man in life is the man who has the best information

Sarfartoq Carbonatite Complex

The Sarfartoq Carbonatite Complex, in west Greenland, is 100% controlled by Hudson Resources TSX.V – HUD and is one of the worlds largest carbonatite complexes having approximate dimensions of 13km X 8 km.

The minerals of economic interest are:

Pyrochlore - a niobium and tantalum oxide. In the core of the complex there are high uranium levels corresponding with exceptionally high concentrations of niobium and tantalum, concentrations which are unusually high in comparison to other such deposits throughout the world - the Sarfartoq Project has produced some of the highest known niobium intercepts.

Uranium is directly associated with the niobium in the pyrochlore and is an effective prospecting tool used to identify other pyrochlore occurrences on the project.

Red Ankerite - the bulk material containing bastnaesite and monazite which are host to the rare earth elements. The Sarfartoq Carbonatite’s rare earth elements (REE) are generally found along the outer margins of the carbonatite.

The distribution of individual rare earth oxides, as a percentage of the total rare earth oxides, demonstrate a high proportion of neodymium oxide to total rare earth oxides.

The high grade rare earth oxides on the Sarfartoq Project are associated with low levels of thorium. As a result, the thorium radiometric signature is an effective prospecting tool for identifying additional REE occurrences.

A 2002 radiometric survey identified over 30 targets on the Sarfartoq Project but a significant portion of the area is covered by disaggregated material which may be masking additional radiometric anomalies.

Sarfartoq Project Historical Work

The Sarfartoq Carbonatite Complex was the focus of limited exploration activity after its discovery by Greenland government geologists in 1976.

Hecla Mining completed a small initial drill program in 1989 which was followed by New Millennium Resources spending in excess of five million dollars on exploration from 2000 to 2002.

Non-compliant NI 43-101 historical results include a trench sample grading 14.4% Nb2O5 over 200 meters and a diamond drill hole averaging 12.13% Nb2O5 over 20 meters starting from near surface.

Bench-scale metallurgical test work carried out on the pyrochlore material from 2000-2003 demonstrated that recoveries of over 95% for niobium and uranium are achievable utilizing solvent extraction.

No follow up work was ever done on some highly anomalous REE results in a number of areas within the outer ring structure of the carbonatite - the north area, despite the average combined lanthanum, cerium and neodymium oxides samples averaging 1.1% (a number of samples exceeded 4.0%), saw little advanced exploration.

Infrastructure

The Sarfartoq Complex is 20 minutes by helicopter from a major airport, is located near tidewater - in a year round ice free area of Greenland - and is adjacent to very good potential hydroelectric (run of river) sites.

Alcoa is currently evaluating a hydroelectric site within 15 km of the Sarfartoq project to support an aluminum smelter to be built on the coast. The hydroelectric facility would have an installed capacity of 600 to 750 megawatts. Civil infrastructure, including harbors, camps, roads and heliports would be developed to support construction of the project.

Hudson has had preliminary discussions with the Greenland government and Alcoa to ensure access to this clean, cost effective power source should it be constructed.

Moratorium On Uranium Exploration

The Government of Greenland amended the Standard Terms for Exploration Licenses and will permit - subject to their approval - the exploitation of minerals that co-exist with radioactive elements above normal background concentrations. There has been no change to the moratorium on uranium exploration and the government retains all rights to radioactive elements.

Because of the current controversy surrounding uranium mining in Greenland, and the exceptional grades of uranium - consistently hitting one percent - Hudson is not, despite average niobium grades of five percent, committing itself to working in the core of the Sarfartoq Carbonatite Complex at the present time. Instead, it is Hudson’s intention to focus on development of its rare earth prospects, in particular the REE(s) associated with the manufacture of today’s powerful miniaturized magnets.

Todays Sarfartoq Carbonatite Neodymium Mine Project

Hudson has recently released the results of a Preliminary Economic Assessment (PEA) for its Neodymium Mine Project.

The Study shows a Net Present Value of $616M and an Internal Rate of Return of 31.2 % with a 2.7 year pay-back period. The Study was based on the Company’s 43-101 compliant inferred resource of 14.1Mt at 1.5% TREO at the ST1 Zone.

A total of 16,514 meters in 71 holes were drilled in 2011 and these results have not yet been incorporated into the resource estimate or the PEA.

“We are very pleased with the results of the PEA which demonstrate the robust economics of the project. Having the project located adjacent to tidewater provides significant economic benefits in both capital and operating costs. Looking ahead, we expect to have an updated resource estimate completed in early 2012, which will incorporate all of the 2011 drill results which includes dozens of high-grade sections from 2.0% to 6.5% TREO.

We plan to update the PEA with the results of the updated resource estimate in early 2012. As the project economics are quite sensitive to grade, we are optimistic that higher project valuations will be reported in the updated PEA." James Tuer, Hudson’s President

Assays from a five tonne bulk metallurgical sample, collected on surface at the ST1 Zone, graded 2.5% Total Rare Earth Oxides (TREO). Neodymium oxide averaged 20% of total REO’s.

“The extraction of the five tonne metallurgical sample is very exciting for several reasons. Firstly, it confirms the presence of a significant amount of high-grade rare earth material at surface. Secondly, and possibly more importantly, it provides a sufficient quantity of material for us to take the metallurgy through to pilot scale testing. This sample will be incorporated into our updated resource model which we expect to have out in the first quarter of 2012.” James Tuer, Hudson’s President

Recent metallurgical test work from SRC has demonstrated successful extraction of rare earths utilizing acid baking and leaching. Test work showed that two hours of baking, at 220°C and approximately one tonne of acid per tonne of mineralized feed (concentrate) recovers 94% of the TREO.

Neodymium

The U.S. Department of Energy, in its Dec. 2011 report Critical Materials Strategy examined the role that rare earth metals and other key materials play in clean energy technologies such as wind turbines, electric vehicles, solar cells and energy-efficient lighting.

Five rare earth metals – dysprosium, neodymium, terbium, europium and yttrium are considered to be the most critical of the elements considered in the report.

Neodymium is the key to making the highest coercivity rare earth permanent magnets – the superior high strength permanent magnets used for many energy related applications, such as wind turbines (the most efficient turbines require approximately 1,000 kg of neodymium for each megawatt of electricity to be produced) and hybrid automobiles. The shift away from electromagnetic systems towards permanent magnetic-based direct drive systems is increasing demand for these high powered magnets.

Neodymium is in short supply in the global marketplace causing prices to remain robust with neodymium oxide currently quoted at US$200/kg, FOB China, and at US$100/kg, within China, according to metal-pages.com

Neodymium Mine

The distribution of individual rare earth oxides, as a percentage of the total rare earth oxides, from the Phase Two program at HUD’s Sarfartoq Carbonatite’s ST1 Zone are documented in the table below. The results are consistent with previous assay results and demonstrate a high proportion of neodymium oxide to total rare earth oxides at 19% - based on the present inferred resource the ST1 Zone at Sarfartoq represents one of the industry’s highest ratios of neodymium to total rare earth oxide (TREO).

Note that the gross amount of neodymium (Nd203, 40 Mkg in total) oxide is approximately the same at each of three locations, this is important for development of the project as a neodymium mine.

Also note; Hudson’s ST1 Zone represents one of the industry’s highest ratios of neodymium and praseodymium to TREO, totaling 25%, and that drilling at ST40 continues to intersect a very high ratio of neodymium oxide to TREO at 46%.

 Management & Board

  James Tuer - President & Director;

MBA, Mechanical Engineer. CEO of Hudson since 2000. Public company & corporate finance background (TD Securities)

  Jim Cambon – VP Project Development;

B.Sc. Geology. Over 20 years international mining/engineering project experience (AMEC, Bateman) including specific arctic project experience (Ekati, Snap Lake)

  John McConnell - Director

Professional Mining Engineer with an extensive background developing and operating mining projects, particularly in arctic regions. President of Victoria Gold

  Flemming Knudsen - Director;

Retired CEO of Royal Greenland A/s, Greenland’s largest company. Extensive world-wide business experience. Strong connections in the EU.

  John Hick - Director;

Has served in a senior capacity and/or on the board of directors of major mining companies (Placer Dome, TVX Gold, Rio Narcea) .

  Dr. John A. McDonald - Director;

He and his technical team were directly responsible for the discovery and development of the Snap Lake diamond deposit, acquired by De Beers for $480 million in 2000.

  Dr. Peter Le Couteur – Consulting Mineralogist;

A mineralogist with significant experience working with carbonatites. Ex-Cominco.

  Dr. Mike Druecker – Consulting Geologist:

Ex-Hecla, professional geologist, one of the pioneers in rare earth exploration dating back to the 1970’s.

  John Goode– Consulting Metallurgist:

48 years experience with numerous rare earth projects in China, Canada and the USA.

2012

Hudson’s plans for 2012 include the commencement of a prefeasibility study (PFS) and an extensive drill program which will further delineate the high grade zones encountered in 2011 as well as other prospective targets that have been identified around the 32 km circumference of the Sarfartoq Carbonatite Complex. With current working capital of $12.5M, the entire 2012 program could be accomplished with the current treasury.

Conclusion

There currently exists a formidable demand for Hudson’s primary target, neodymium and its other potential by-product credits ie praseodymium. Neodymium is in a supply deficit, both in China and in the west - the magnet industry demand for neodymium is expected to grow by about 10% per year.

Hudson’s Neodymium Mine Project should be on everyone’s  radar screen. Is it on yours?

If not, maybe it should be.

“We’ll be drilling the next tier of holes underneath this, looking to extend this resource,” Sargeant said.

Following the next round of drilling, initial Resource calculations for A Zone will be undertaken. Empire also plans to update the existing Resource at the Just Desserts, which hosts an Indicated and Inferred JORC Resource of 1,070,000 tonnes at 1.82% copper and 0.78g/t gold.

Sargeant told Proactive Investors the company’s plan is to “Just keep drilling and get up to that threshold where we can press the button and say yes we want to move into analysing and feasibility, so we’d like to think that that’s going to happen this year.

“With some fortune we’re on the tip of something that’s much bigger.”

This equates to an increase of 55% at the lower end of the range, up to 76% at the upper end.

These figures will be finalised when an audit review of the company’s results is completed this month.

Strong production from the White Dam gold mine operations in the six month period, along with associated strong commodity prices, contributed to the increase.

The sale of Polymetals’ Boorara assets for $3 million also contributed to the figure.

At the end of the December quarter 2011, Polymetals had cash reserves of $18 million, meaning the company is well funded for its operations in 2012.

White Dam operations

The White Dam mine is part of the Drew Hill Project, a joint venture between Polymetals and Exco Resources (ASX: EXS).

Polymetals recently announced an agreement to increase its ownership of Drew Hill to 50%, from 25%.

Mining at the Hannaford pit has concluded, with mining operations moved to the associated Vertigo project.

Importantly, under the recent agreement, Polymetals is entitled to a 50% stake in production from Vertigo.

Mining at Vertigo will extend operations at Drew Hill to June 2012, with processing to primarily use existing infrastructure, keeping capital expenditure low.

In order to supplement the associated decline in production from White Dam, Polymetals is focused on bringing its 100%-owned Mt Boppy Gold Mine into production in 2013 and is seeking near-production assets to expand its production base.

Analysis

Polymetals is developing a reputation for fast, low cost development, bringing White Dam from start of construction to first gold production in just 31 weeks.

White Dam has been in production since April 2010. Total production for the 2011 financial year was 87,400 ounces, which was 30% better than expected. A further 19,400 ounces was produced to the end of October.

To put the cash return into perspective, Polymetals' cash costs were $450 per ounce and the average gold price received was $1,280 per ounce. That’s a return of almost three times its cash costs.

Polymetals is fast tracking the Mt Boppy Gold Mine into production and has moved a step closer today to the recommencement of mining operations with the lodgement of the Development Application and Environmental Impact Statement with the New South Wales Government.

The company is in the process of completing a Feasibility Study, which is scheduled to be finalised in early 2012.

In 2011, Polymetals returned:

- EBITDA of $15.9m

- Net profit after tax of $8.4m

- Net cash flow of $13.5m

With a market capitalisation of $25 million and cash of $21 million (at Nov 2011) this provides an EV of just $4m for the company. This indicates Polymetals is significantly undervalued.

START AUDIO

Harry Norman: Hello, this is Harry Norman for Proactive Investors and welcome to another Proactive audio interview. Today is the 19th January 2012 and I’m talking with Vassilios Carellas, CEO of Ortac Resources, listed on the AIM market mining sector, stock ticker OTC, share price .85 of a penny, market capitalisation £19.7 million Sterling. Web address: ortac, O, R, T, A, C, ortacresources.com. Vassilios, thank you very much for joining us for this interview.

Vassilios Carellas: Thank you Harry, it’s a pleasure.

Harry Norman: Please give investors a brief introduction to Ortac Resources and the company’s strategy for creating value.

Vassilios Carellas: Ortac Resources is a London listed public company, focused on financing and developing projects in the Natural Resource Sector in Europe. We currently own 100% of a gold project in Slovakia, which we have just completed a scoping study on. We work to co-create projects that deliver robust investment returns while respecting the criteria of socially responsible investment. We create value by implementing sustainable and innovative solutions for the development of natural resources.

Harry Norman: Please would you talk investors through the salient points of the scoping study for Ortac’s flagship project, the Šturec gold/silver deposit in Slovakia, which you published a week ago? And tell us how you plan to take Šturec forward.

Vassilios Carellas: The recent scoping study, complete by SRK Consulting on the Šturec deposit confirms the attractive fundamentals, and suggests that this has the potential to become a robust and profitable asset. The numbers demonstrated in the scoping study are highly encouraging, with a post-tax NPV of over $300 million and internal rate of return of 36% at current metal prices, which is just under $1600 an ounce gold equivalent.

The life of mine revenue for the Šturec deposit is projected to be around $1.5 billion over an 11 year life, with average annual production of 86,000 ounces, cash costs of just over $500 an ounce.

The beauty about the project is what has come out on the scoping study, is there are hardly any infrastructural requirements. And that we have a very straightforward metallurgy with recoveries projected to be in the region of 95%.

We now plan to engage with all stakeholders of the project, which will include authorities, communities, supply chain, etc, to co-create a project that is not only technically and economically robust, but that is also socially and environmentally acceptable.

Harry Norman: What is the state of gold and silver reserves and resources at the Šturec gold and silver deposit Vassilios?

Vassilios Carellas: The current resource at our Šturec deposit is just over 1.2 million ounces of gold equivalent, and a half a gram ton gold cut off, with around half of this resource in the measured and indicated categories.

Harry Norman: What scope is there for increasing gold and silver reserves and resources in the area around Šturec?

Vassilios Carellas: We’ve always felt that the land package in Slovakia that we hold, has the potential to host at least 2 million ounces. And this is based on the fact that we have a six and a half kilometre mineralised structure, along which there has been historical mining activities. And the current Šturec resource is based upon a 1.2 kilometre length of this mineralised structure.

The historical areas along the structure that have been mined in the past, there has been some drilling which will verify that there, still mineralisation there. And on that basis, with what we have at Šturec and what we still have along the structure, we’re quite confident that 2 million ounces would be achievable.

Harry Norman: What can you tell us about exploration at the Zlatá Baňa and Cejkov Projects, which are also in Slovakia?

Vassilios Carellas: Yes, with Zlatá Baňa and Cejkov, they’re both really interesting deposits. Cejkov has had some historical work there, that’s shown that there’s really some high grade mineralisation there. And the programme then was just to define, to see if that mineralisation had any lateral extent. We drilled four holes there and we’re still waiting for those results.

At Zlatá Baňa, this is a much more advanced, here, initial exploratory activity was for a Deep copper porphyry that resulted in over 120 drill holes for a total length of 53 kilometres, along with 3 underground exploration adits being developed for a total length of 4 kilometres. Initially, not all of this data was analysed for gold. But where analysis has been carried out, the result is that we have a non-compliant resource of around half a million ounces gold equivalent.

We have recently completed a verification drill programme at Zlatá Baňa, the results for which are still pending. But the intention is to compile a maiden JORC Code compliant resource, once we have this data.

Harry Norman: What are your thoughts on developing a mining company in Slovakia? And what can you tell us about costs in Slovakia and the country’s fiscal regime?

Vassilios Carellas: Slovakia and the area surrounding our project has a rich mining tradition. Along with our neighbours in Central and Eastern Europe, it has finalised the modernisation of its mining and environmental legislation, in line with EU directives and international best practice. The region, we believe, is on the brink of a renaissance in the natural resource industry. Hence we believe this is an exciting time for us to be doing business here where we have to proactively balance market and sustainability requirements.

In line with this, we are addressing the key sustainable development opportunities associated with our assets for the benefit of all stakeholders, including the local communities. Regional development integration, and strategic local investments in partnership with community projects and programmes, with short, medium and long term returns are key elements to this.

By implementing this multifaceted investment strategy, the company is approaching its resource development objectives in a proactive manner, in line with EU, market and local community requirements.

With respect to costs, Slovakia is a highly competitive place in which to do business in a European context. It has a straightforward tax system with a flat 19% corporation tax and a fiscal regime that encourages direct foreign investment. This is demonstrated by the fact that a number of large global businesses, that include the likes of VW, Samsung, Kia, Peugeot, have all chosen to locate a significant part of their European manufacturing capacity here.

Harry Norman: Please would you talk us through Ortac Resources capital structure and the company’s financial situation going forward?

Vassilios Carellas: The market capitalisation of the company is roundabout $30 million. We have 2.3 billion shares in issue, with the directors and management currently holding around 10% of the company. Significant institutional shareholders include Henderson Global and BlackRock and we have a large retail holding which gives us excellent liquidity, which is what most AIM companies lack. Also have a healthy cash position of £8.2 million, of which we expect to spend roundabout £2.5 to £3 million to progress the Šturec deposit through BFS.

Harry Norman: What can we expect from Ortac Resources over the next 12 to 18 months Vassilios?

Vassilios Carellas: The next, sort of, 12 to 18 months will continue to be a period of high activity for Ortac. We will continue to develop our Šturec deposit and anticipate a resource update in the first half of this year. Followed by a pre-feasibility study in the second half of the year, that will result in JORC Code compliant reserves for Šturec. We expect to complete the BFS and full ESIA to international standards in 2013.

With respect to our other projects in the country, obviously with  Zlata Baňa , we would anticipate producing a maiden JORC Code compliant resource. And then doing a little bit of work on the other projects, moving those forward and just seeing if there is anything there that could be developed further.

At the same time, we are on the look out for further projects through which we can expand our portfolio and global resource inventory, in order to further build shareholder value. With a strong cash treasury and a highly encouraging scoping study under our belt, I believe that we are well positioned to build value in Ortac. And I look forward to updating shareholders with our progress.

Harry Norman: Remember Proactive Investors is not an investment advice service. Make sure you register at proactiveinvestors.co.uk for our weekly newsletter, which will keep you informed about our articles, events and interviews. Thank you for listening. Please note, I hold shares in Ortac Resources.

END AUDIO

Revenues jumped to US2.69 million in the three months to December as it produced 1,352 ounces of gold at a cost of US$585 per ounce compared to 628 ounces at a cost of US$628 in the preceding three months.

VANE also produced 19,410 ounces of silver at a lower cost per ounce.

The cash generated was enough to cover all of the company's costs (both its operational costs and its exploration costs) for the fourth quarter, VANE added.

VANE is pushing ahead with the closure of the Diablito mine and work has started to remove 3,200 tonnes of high grade ore.

David Newton, chief executive, said: “These results are very encouraging and underpin the company's decision to switch its focus to ore produced at the La Colorada Mine”

“Whilst there can be no guarantee that these results will be replicated in the future, they demonstrate that if these production levels can be maintained then the company's Mexican operations will continue to make a significant cash contribution to the total running costs of the group," he added.

VANE said 7,802 tonnes of ore was processed by SDA Mill during the three months to December (Q3: 8,022 tonnes) with average grades 8.06 g/t gold (Q3: 5.17g/t) and 127g/t silver (Q3: 105g/t).

The average recovery rate was 78.2% for gold (Q3: 75.9%) and 70.9% for silver (Q3: 69.9%).