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Mining news summary: Ferrexpo, Metminco, Red Rock Resources, Sunrise Resources, Coal of Africa

Published: 11:15 09 Jul 2011 BST

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Ukrainian mining company Ferrexpo (LON:FXPO) released its production figures for the second quarter of 2011 on Wednesday, revealing that pellet production from its own ore had increased 6.9 percent compared to Q1. In the three months to 30 June, the iron ore group produced 2,270,500 tonnes of pellets compared to 2,123,600 tonnes in the first quarter. These second quarter figures are a slight fall (0.4 percent) on last year's Q2, when the firm produced 2,278,900 tonnes of pellets from own ore.

Red Rock Resources (LON:RRR)
is expecting the current drilling work at the Migori gold project, in Kenya, to increase the resource confidence for each of the project’s deposits, the company said this week. The Migori project currently has a 1.2 million ounce indicated mineral resource, defined to NI43-101 reporting standards. The resource estimation process will be followed by a pre-feasibility study, Red Rock said.

European Goldfields (LON:EGU, TSE:EGU)
announced this week that the group’s 95%-owned subsidiary Hellas Gold SA got environment approval to develop its Greek assets. The Greek Ministry of Environment Energy and Climate Change (MOE) issued a statement confirming that Hellas Gold could now progress the mine development projects.

Herencia Resources (LON:HER)
revealed this week that it has had to suspend operations at the Paguanta project, in northern Chile, because of unusually heavy snowfall. The company told investors that although snow is not uncommon at Paguanta, there has been much more than usual and this has caused many roads to be closed in the region, including the access road into the project.

Metminco (LON:MNC,ASX:MNC)
has entered an agreement to buy 100 percent of the La Piedra copper, gold, moly project in Chile, it emerged this week.

Chaarat Gold (LON:CGH)
has added over 300,000 ounces to its gold resource for the flagship  project in the Kyrgyz Republic, following positive drill results from six holes. The holes were drilled on the  'Contact Zone’ and the resource for this part of the Chaarat project has increased by 16 percent, from 2.001 million ounces to 2.331 million ounces.

Ovoca Gold (LON:OVG)
has revealed a significant upgrade of resources at its Olcha project in the Magadan region of Russia this week - standing now at 650,000 ounces of gold and 3.59 million ounces of silver. Last June, the company announced a maiden JORC inferred gold resource at the project of 344,000 ounces based on 16,455m of drilling across 144 holes.

Alexander Mining (LON:AXM)
, the mining technology group, has been asked by Tiger Resources (LON:TIR, ASX/TSX:TGS) to design a pilot plant for its flagship Kipoi copper/cobalt project in the Democratic Republic of the Congo. The appointment lends further commercial credibility to Alexander’s expertise and ability to deliver.

Perth-based coal miner Coal of Africa (LON:CZA) has secured a key environmental permit from the South African government this week, clearing a major hurdle on the way to restarting its Vele coking coal project. The approval will allow the company to proceed with construction work at the site following a year long delay due to environmental issues.

A “bumper crop” of new results at gold miner Medusa Mining (LON:MML, ASX:MML, TSX:MLL) helped its shares to bounce some five percent to 444.5 pence each Wednesday morning. Highlights of the surface and underground drilling at the company’s Co-O mine in the Philippines included seven holes that had grades of between 7.15 and 208.7 grams per ton of gold, with median results including: 2.95 metres at 14.09 grams per ton, 1.4 metres at 21.4 grams per ton and two metres at 32.64 grams per ton.

European Nickel (LON:ENK, ASX:ENK)
said this week it had made its first direct shipment of nickel laterite from the Philippines as it gave a generally positive update on its Acoje operation in the country. The company has been forced to put in place its rain mitigating strategies at the trail heap leach operation at Acoje, which is running to schedule with extraction of 21 per cent after 70 days.

Sunrise Resources (LON:SRES)
has started drilling at the Derryginagh barite project in south-west Ireland. The announcement followed the news that a ten-hole drill programme had begun at the company’s Canadian gold project, Long Lake.

Rare Earth Minerals PLC (LON:REM)
has completed the conditions precedent under the agreement announced in early May and now has a 51 percent beneficial interest in 5 claims comprising the Cup Lake project in Saskatchewan, Canada.

Mariana Resources (LON:MARL, TSE:MRY)
reported that testwork results at its flagship Las Calandrias project in Argentina showed “excellent” recoveries, boding well for the ongoing exploration programme. The company will carry out further testwork to better define the metallurgical characteristics of the Calandria Sur and La Calandria deposits. In the meantime, Mariana is preparing a maiden resource statement for Las Calandrias, which should be released shortly.

Ariana Resources updates resource and reserve; realises long-term strategy

Joining Jonathan Jackson in the Proactive studio is Ariana Resources PLC (AIM:AAU) managing director Kerim Sener, who sits down to discuss the latest resource and reserve update for the Zenit Mining Operations in Western Türkiye. The update encompasses the Kiziltepe and Tavsan sectors, operated...

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