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Metal Tiger, Caladonia Mining, Gemfields and African Potash all in focus

It was another summerish week for the mining sector.
mining truck
Metal Tiger has unearthed 19 new targets

Metal Tiger Plc (LON:MTR) has given details of 19 potential exploration targets that have been identified in the T3 Dome area, of its Kalahari copper belt in Botswana.

The AIM-quoted group’s exploration partner MOD Resources had undertaken an airborne electromagnetic geophysics survey that identified the nineteen anomalies.

"We are delighted to report on the findings of a provisional interpretation of the Airborne Electromagnetic survey data,” said Michael McNeilly, Metal Tiger chief executive. “The AEM data will prove an important tool to help focus exploration efforts on the discovery of further T3 Type copper/silver deposits along the T3 Dome.

Caledonia Mining expects to meet gold target

Caledonia Mining Corporation PLC (LON:CMCL TSE:CAL) expects to meet its gold production target this year through an improved second half performance.

The Zimbabwe-based miner produced approximately 12,522 ounces of gold from the Blanket mine in the three months to June, about the same amount as a year ago.

Over the half year, output rose by 8.5% to 25,316oz, but Caledonia expects output to rise over the next two quarters. The target for the year is for production to be between 52,000oz and 57,000oz and to hit 80,000oz by 2021.

Gemfields taken out

Pallinghurst is to exercise its right to compulsorily acquire the Gemfields PLC (LON:GEM) shares from those shareholders who have not yet accepted its takeover offer. Gemfields is advising the hold-out shareholders to accept the offer, as they will get their recompense sooner than they would were they to wait for the compulsory acquisition procedure to run its course.

Gemfields shares are set to de-list from AIM on 28 July.

African Potash unveils deal with African Agronomix

African Potash Ltd (LON:AFPO) has unveiled a deal with African Agronomix (AAX) which sees the latter potentially acquiring all of the Lac Dinga project in the Republic of Congo.

It would see African Potash, which holds 70% of Lac Dinga via the La Société des Potasses et des Mines SA (SPM) vehicle, receive 5 mln new shares in AAX as well as warrants giving it the option to buy another 2.5 mln (each priced at 5p).

AAX also commits to certain spending milestones for the project. "This is a positive move for all concerned and fits in with our long-held ethos of helping the African farmer,” said Chris Cleverly, executive chairman.

Shanta Gold reviews Tanzania cost base

Shanta Gold PLC (LON:SHG) has started to review its cost base in Tanzania after recent changes to the finance and mining laws in the country. As a result, Shanta expects that its next gold shipment will see royalty rates increase to 6% from 4%, while a 1% clearing fee has already been implemented.

The changes have not affected production. Output from the New Luika mine in the three months to June was 19,657 ounces (Q1 2017: 20,416 oz), which was ahead of budget, and keeps it on track for annual production of between 80,000 - 85,000 oz.

Sales totalled 17,982 oz at an average price of US$1,249 per oz, while cash costs were US$559/oz (Q1 2017:US$553/oz) and All-in-Sustaining-Cost of US$735/oz (Q1 2017:US$768 /oz).

ECR Minerals picks up new exploration ground

ECR Minerals PLC (LON:ECR) has been issued a new gold exploration licence in Victoria, Australia.

This licence is to be known as the Moormbool project, and lies within the highly prospective Costerfield Domain. The licence is centred approximately 10km northeast of the high-grade Costerfield gold-antimony mine operated by Mandalay Resources (TSE:MND).

The Moormbool licence covers approximately 59 square kilometres. Due to pervasive alluvial cover, the licence area is largely unexplored.

Only low impact exploration may be undertaken in the licence area until a work plan has been approved by the Victorian authorities. The company does not expect to submit a work plan until targets for drilling have been identified.

Petropavlovsk makes changes at the top

Petropavlovsk PLC (LON:POG) has appointed Sergey Ermolenko as its acting chief executive officer with immediate effect, replacing Pavel Maslovskiy, who resigned on Tuesday. Ermolenko, who is currently general director of management company Petropavlovsk, was CEO of Petropavlovsk PLC from December 2011 to November 2014 when Maslovskiy was serving as a Russian senator.

He is also one of the original members of the group's founding management team and has held top managerial positions with the group since its inception in 1994.

In a statement, the company said the formal recruitment process to find an external permanent replacement for Maslovskiy is commencing immediately and the board believes that Ermolenko, with his extensive experience of Petropavlovsk operations, will ensure a smooth transition.

Asiamet unearths significant potential

Asiamet Resources Limited (LON:ARS) said systematic mapping and rock chip sampling was recently completed in the northern part of the Beruang Kanan West (BKW) prospect in Central Kalimantan, Indonesia, which showed "significant potential" for the discovery of additional copper mineralisation.

BKW is located approximately 1km west of Asiamet's core Beruang Kanan Main (BKM) Copper Project where bankable feasibility studies are well advanced. The AIM-listed firm said results received to date at BKW confirm a copper in soil anomaly in the northern part of BKW.


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