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Proactive weekly mining highlights: African Battery Metals, Kibo Energy, Savannah Resources

A look back at some of the top news from London’s junior miners
coal mine
Kibo Energy received some bad news in Tanzania

Galantas Gold Corporation (LON:GAL)(CVE:GAL) is continuing with development on the Kearney vein at its Omagh gold mine in Northern Ireland.

"Current production is sourced from the mining of on-vein drives, which have to be developed before stopping panels are mined,” said chief executive Roland Phelps.

“I am pleased that development progress has accelerated significantly with the continued investment in training, operator experience and equipment and that the excellent safety record is being maintained."

Development at the upper level remains ongoing, and development on the second level has now commenced. The interval between the levels will be mined by a long-hole method, using cemented rock and tailings as backfill support.

Follow-up drilling work undertaken by Savannah Resources PLC (LON:SAV) confirmed continuity of lithium mineralisation at the Grandao, Reservatorio and Pinherio deposits on the Mina do Barroso lithium project in Portugal.

Key lithium intersections at Grandao include 46.11 metres at 1.04% Li₂O, 19.7 metres at 1.28% Li₂O, and 15.27 metres at 1.37% Li₂O. Key intersections at Reservatorio include 36 metres at 1.15% Li₂O, while key intersections at Pinheiro include 15 metres at 0.97% Li₂O.

Drilling has focused on building confidence in the continuity of mineralisation at Grandao and Reservatorio, with recent results confirming the geological model for these deposits.

The results underpin the company's strategy of aiming to become Europe's most significant producer of lithium spodumene concentrates in response to the growing demand from the expanding European electric vehicle market.

Bezant Resources PLC (LON:BZT) revealed the results of an independent study assessing alternative options for the development of the Mankayan copper-gold project on Luzon in the Philippines.

The study was undertaken by independent consultants, Mining Plus Pty Limited, and was based around the 2009 JORC resource estimate produced for Bezant by Snowden.

This showed Mankayan to contain an indicated resource of 1.1mln tonnes of copper and 3.7mln ounces of gold, with additional inferred resources of 200,000 tonnes of copper and 600,000 ounces of gold.

Strategic Minerals plc (LON:SML) highlighted the world-class potential of the Redmoor project as it revealed a new mineral resource estimate.

It was estimated that Redmoor contains some 137,000 tonnes of inferred tin resources, up from 45,000 tonnes.

Overall the resource amounted to 11.7mln tonnes of material with a tin equivalent grade of 1.17%.

The new estimates follow a successful phase of drilling during 2018, and, the company highlighted the improvement from the prior estimate – a 200% rise in contained metal, 160% increase in resource tonnes, and 17% tin equivalent.

Redmoor now ranks as one of the leading undeveloped tin-tungsten mining projects in the world, the company said.

African Battery Metals Ltd (LON:ABM) requested its shares resume trading on AIM with effect from Monday, February 18 after shareholders approved a refinancing placing and share subscription by the group.

The exploration company's shares were temporarily suspended in December, pending clarification of the company's financial position, as the group said then that despite "protracted discussions" with its largest shareholders, the firm was unable to secure equity finance from its shareholders on any terms.

However, at a general meeting held on Friday, ABM shareholders almost unanimously approved resolutions to raise £1mln via a placing of 200.0mln shares at 0.5p each.

Kibo Energy PLC (LON:KIBO) was dealt a blow after receiving notice from TANESCO that it will not be buying any electricity produced at the company’s Mbeya Coal to Power project in Tanzania.

AIM-quoted Kibo owns a thermal coal deposit near Mbeya in southern Tanzania, where it is developing MCPP – a 250-350 megawatt mouth-of-mine thermal power station.

After a brief delay in the tender process, Kibo submitted its application back in December which, had it been successful, would have seen TANESCO buy electricity produced at MCPP.

But Kibo received notice from TANESCO stating that it has not qualified to compete in the next stage of the bidding process.


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