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Proactive weekly mining news: Metminco, Kore Potash, Cadence Minerals ...

Published: 08:00 01 Sep 2018 BST

Mining trucks

Metminco Limited (LON:MNC) has recorded the best results so far from a drilling programme at Tesorito in Colombia.

The latest hole intersected 64 metres of gold at a grade 1.67 g/t from a depth of 144 metres.

Elsewhere in Africa, the environmental and social impact assessment (ESIA) for Kore Potash PLC’s (LON:KP2) Dougou mining licence has been approved.

Approval of an ESIA is a prerequisite to commencing construction of a mining project in the Republic of Congo, Kore said.

Cradle Arc Plc (LON:CRA) has cut its 2018 production guidance for its 60%-owned Mowana Copper Mine in Botswana after some operational setbacks during the third quarter but expects to ramp-up to full steady state production during the fourth quarter.

Premier African Minerals Limited (LON:PREM) has commenced the diamond drilling programme at the open pit at the RHA tungsten mine.

African Battery Metals PLC (LON:ABM) has decided to discontinue its activities in Sierra Leone after a review of its assets following the acquisition of two new nickel and cobalt projects in Cameroon and Cote d'Ivoire.

Kibo Energy PLC (LON:KIBO) shares nudged higher on Wednesday afternoon after the Africa-focused energy group signed a new collaboration agreement with US industrial tech giant General Electric.

The two will work together to develop Kibo’s portfolio of energy projects in Tanzania, Botswana and Mozambique, as well as to enhance its strategy of delivering power solutions that alleviate Africa's energy shortage.

IronRidge Resources Ltd (LON:IRR) has hit high-grade lithium in drilling at the Ewoyaa project in Ghana.

Among the better intercepts were 128 metres grading 1.21% Li2O, 111 metres grading 1.35% Li2O, and 65 metres at 1.58% Li2O.

Xtract Resources PLC (LON:XTR) has updated on its hard rock collaboration agreement with Omnia Mining Ltd at Xtract’s Manica mining concession in Mozambique.

The miner said that to date 12 potential mining sites had been identified within 15 kilometres of Omnia’s plant, with eight of the potential mining sites already within the existing license areas.

Asia-Pacific​

In Australia, Thor Mining PLC (LON:THR) has successfully completed laboratory test work for the extraction of copper from several core samples from its Kapunda copper project in South Australia.

The miner said within two days of bottle roll leach testing, in which ore is placed in a dissolving solution to separate the copper from other parts of the ore, had resulted in up 78% copper recovery using a biodegradable amino acid glycine as the extraction agent.

Cadence Minerals Plc (LON:KDNC) issued a stock market statement highlighting news from 12% owned Macarthur Minerals (CVE:MMS), which has identified three high priority nickel sulphide targets at the Lake Giles project in Western Australia.

It follows a recent geophysical survey that used moving loop electromagnetics, and, the targets are derived from previous drilling and soil geochemistry data.

Cadence also revealed that investee company Auroch Minerals has significantly expanded its footprint across the Arden and Bonaventura projects in South Australia.

The new licences, which increase the exploration tenure at the projects by 55%, are considered highly-prospective for base-metals and add momentum to Auroch's aggressive exploration programmes, with drilling already underway at both Arden and Bonaventura.

Strategic Minerals Plc (LON:SML) has received approval from the South Australian government following two submissions relating to a programme for environment protection and rehabilitation at the Leigh Creek copper project.

The approvals cover the Mountain of Light processing facility, as well as the Paltridge North and Lynda deposits.

Elsewhere in the Asia-Pacific region, Asiamet Resources Limited (LON:ARS) said it has successfully intersected strong copper mineralisation at a depth well beyond the 2014 resource envelope at the easterly extensions of the Beutong West Porphyry (BWP) in Indonesia.

The miner said drill hole BEU1350-02 intersected 118.0 metres at 0.71% CuEq (0.60% Copper, 0.05g/t gold and 255ppm molybdenum) to the bottom of hole from 632.0m within a broader interval of 398.0 metres at 0.46% CuEq (0.39% Copper, 0.04g/t gold) from 352.0 metres.

Europe​

Moving to the European scene, Europa Metals Limited (LON:EUZ) has mobilised a drilling rig at its Toral project in northern Spain as it prepares to begin a campaign to evaluate the potential extension of a mineral structure.

Phase one of the drill campaign would involve drilling to ascertain whether a mineralised structure at the project continued outside the current defined JORC (2012) resource area which had already been established for the Toral project area.

On the results front, Galantas Gold Corp (LON:GAL) has posted a net loss for the three months ended June 30 of C$700,510, marginally wider than the C$511,876 loss booked in 2017.

The net loss for the six months ended June 30 amounted to C$1.2mln, also marginally wider on the corresponding number for 2017.

The miner announced assays of 12.8 grams per tonne (g/t) gold from the Kearney vein at its Omagh gold mine.

In a statement revealing details of the recent channel sample and grab sample results taken during the underground development of the Kearney vein, Galantas also revealed 33.1 g/t silver.

Mineral sands miner Base Resources Limited (LON:BSE) doubled profits in the year just ended as all three of its core metals saw higher prices.

Production was steady at 91,672 tonnes of rutile, 464,988 tonnes of ilmenite and 37,157 tonnes of zircon; but the prices of the metals rose by 17%, 28% and 46% respectively.

Canadian copper miner Rambler Metal & Mining PLC (LON:RMM) saw an improved second quarter as copper and gold grades improved and more ore was processed.

Revenues rose by 31% to US$8.1mln in the three months to June, while losses were reduced to US$4.5mln from US$6.1mln. A ventilation upgrade in March helped the performance at the Ming mine by reducing blast gas clearing times said Norman Williams, chief executive.

Fund-raising news​

Moving on to fund-raising news, Chaarat Gold Holdings Ltd (LON:CGH) is raising up to US$100mln to help fund the acquisition of a producing and profitable polymetallic mine in the Russian Commonwealth.

In 2017, the mine produced around 50,000 ounces of gold equivalent and turned a profit before tax of US$19mln, while the gross assets were valued at US$100mln.

Metal Tiger PLC (LON:MTR) has closed its oversubscribed Sprott Offering and has raised £2.6mln to help fund its joint venture project in Botswana.

The AIM-listed natural resources investment group said the funds would be added to those raised by a placing earlier in August, of around 93.4mln new shares issued at a price of 2.8p each, to give a total of around £6.2mln in combination.

Vast Resources PLC (LON:VAST) has raised £863,750 through a subscription.

Investors subscribed for 133.9mln shares at 0.645p each – a small discount to Tuesday’s closing price.

Bluebird Merchant Ventures (LON:BMV) has completed a A$250,000 placing into Southern Gold Ltd. The placing was part of the requirements for Bluebird to meet the formal joint venture agreement on the Kochang gold and silver mine in South Korea.

Boardroom news​

In boardroom news, Anglo Asian Mining Plc (LON:AAZ) has cleared a regulatory hurdle which will allow the gold, copper and silver miner to start paying a dividend.

At June’s annual general meeting, chief executive Reza Vaziri said the board was considering paying a maiden dividend.

Rare-earths project developer Mkango Resources Ltd (LON:MKA) has re-jigged its board with the appointment of three new non-executive directors while two are stepping down.

The three non-execs joining are finance and investor relations experts. Susan Muir has spent thirty-years in mining capital markets including most recently as investor relations vice president at gold miner Barrick. Sandra Du Toit is currently executive vice president with Standard Bank in South Africa, while Shaun Treacy is chief investment officer for private equity firm Arete Capital having worked at numerous investment banks.

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